The new year is here, and the eCommerce industry is already shifting gears. Our latest insights from IMRG’s Weekly Data Show reveal some crucial trends shaping the landscape in 2025.
Whether you’re running an online store or managing digital campaigns, here’s what you need to know — and how to stay ahead
1. eCommerce Revenue & Traffic Are Rising
Total eCommerce market revenue has jumped by over 10% YoY, while traffic is up 5% YoY.
This tells us one thing: consumers are still spending online despite economic pressures — great news for eCommerce brands!
But while more people are browsing, not all of them are buying…
| What This Means for You More traffic is only valuable if it converts into sales. Brands need to fine-tune their user experience (UX) to ensure smooth shopping journeys, remove friction at checkout, and keep customers engaged. With competition heating up, SEO and PPC strategies need to focus on high-intent audiences. This means refining keyword targeting, optimising product pages, and running conversion-driven paid campaigns. |
2. Health & Beauty + Sports & Outdoor Are Winning
Some sectors are seeing huge growth, while others are slowing down:
- Health & Beauty revenue is up 18% YoY.
- Sports & Outdoor is surging with a 28% YoY increase.
- Home & Garden is down by 12.5%, showing a post-Christmas dip.
If you’re in one of the high-growth categories, now is the time to ramp up your marketing efforts and capture demand.
| What This Means for You For brands in Health & Beauty or Sports & Outdoor, there’s a huge opportunity to attract new customers. Competition will be fierce, so differentiation is key — highlight unique product benefits, customer reviews, and exclusive offers to stand out. |
3. Retail Media Budgets Are Shifting — Are You Ready?
Retail media is booming. 52% of advertisers are shifting budgets from traditional advertising to retail media, and European spending is projected to hit €31B by 2028.
This means more brands are investing in platforms like Amazon Ads, TikTok Shop, and retailer-sponsored ads — but not all retailers are getting their fair share.
| What This Means for You If you’re running retail media campaigns, you must prove ROI to secure continued investment. Brands that can demonstrate clear incrementality (additional sales generated by retail media) will be in a strong position. |
4. AI & Smart Bidding Are Reshaping PPC
PPC is evolving fast, with platforms doubling down on AI automation. Google’s margin-based bidding is set to shake up the game, optimising campaigns for profitability rather than pure conversions.
Meanwhile, ad platforms are making it easier than ever to launch campaigns, streamlining the process with AI-driven automation.
| What This Means for You Brands can no longer rely on manual bidding alone — AI-driven strategies will dominate. However, that doesn’t mean you should let automation run unchecked. Strategic oversight is essential to avoid wasted ad spend and ensure AI aligns with your business goals. |
5. Video & UGC Are Now Non-Negotiable
2024 was the year of user-generated content (UGC), and video continues to dominate across platforms. Consumers want engaging, authentic content that builds trust before they buy.
| What This Means for You If you’re not using video and UGC in your marketing, you’re missing out. Simple. Customers expect to see real people using your products, whether on TikTok, Instagram Reels, or YouTube Shorts. |
Final Thoughts: How to Stay Ahead in 2025
As eCommerce evolves, brands must adapt to stay competitive.
| 💡 If you’re in a high-growth sector (Health & Beauty or Sports & Outdoor), now’s the time to scale up. 💡 PPC is shifting towards AI and margin-based bidding — marketers must stay in control. 💡 Video and UGC are crucial for brand visibility — if you’re not using them, start now. 💡 Profitability is key — margins are tightening, so efficiency in paid and organic marketing is more important than ever. |
At Neural Edge, we help eCommerce brands navigate these changes with data-driven SEO and PPC strategies. If you want to improve your search visibility or paid media performance in 2025, get in touch with our team today.
