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63 Cents of Every New E-Commerce Marketing Dollar Goes to AI and Cashback Apps

E-commerce marketing

E-commerce marketing budgets are shifting as shoppers increasingly use AI and savings tools. New research shows brands are moving funds beyond traditional digital advertising.

This was established through research carried out by Northwestern University’s Retail Analytics Council and Minty. This was made public during EMARKETER’s The Future of Digital conference held in New York City. According to the research, marketers will allocate 63 cents of every additional dollar to AI commerce tools instead of digital marketing. They will allocate their money to cashback and savings apps.

The Proactive Commerce Index surveyed 150 senior commerce decision-makers. Moreover, 98% of participants represented companies with over $100 million in annual revenue.

As per the findings, AI, along with savings ecosystems, has started transforming the distribution layer of commerce. At the same time, 79% expect that AI will help their top customer by 2027. Now, cashback apps, deal sites, and price comparison tools have taken over some marketing channels. They include advertising, loyalty, retail media, and creator marketing.

AI and Savings Tools Reshape E-Commerce Marketing

In addition to that, 81% of consumers find cashback and savings tools very useful. These tools assist consumers when they are making decisions on purchasing. Two-thirds of marketers believe that AI will be their primary entry into shopping by 2027. Over half of them also plan to use AI along with savings ecosystems.

Only 18% think that traditional search will continue to be the main route of connecting with shoppers. In addition, just 13% see social media as remaining in this spot. Half of those questioned are getting ready to market to AI assistants. Moreover, 38% are already operating proactive commerce initiatives. On the other hand, 36% are headed towards proactive commerce.

For those marketers adopting this new trend, 61% of them have either started investing in or have increased their investment in cashback and savings apps. They have become a significant part of brands’ strategies as well. As of now, only 16% regard them as a core or strategic marketing capability. But 41% believe they will become one by 2027.

“This isn’t marketers tweaking a line item,” said Frank Dudley, Associate Director of the Retail Analytics Council at Northwestern University. “They’re responding to a fundamental shift in how products are discovered and chosen. As consumers increasingly rely on AI to compare prices, evaluate alternatives, and maximize value, brands are reallocating investment toward the channels and capabilities that influence those decisions.”

“Buying decisions are moving earlier in the e-commerce purchase funnel,” noted Rodney Mason, Chief Marketing Officer of Minty. “Proactive commerce, delivering total-value messaging to shoppers and their AI agents before they search, click or abandon a cart, is already being practiced by the largest market leaders and the majority of respondents intend to do so in 2027.”

Mason added that major market leaders already practice proactive commerce. He also noted that most respondents plan to adopt it in 2027.

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News Source: Businesswire.com