Study: E-commerce marketing dollars moving away from traditional digital ads
As consumers increasingly use AI to find cashback, lower prices, promotions and better alternatives, e-commerce marketing budgets are rapidly following suit.
E-commerce marketers plan to put $0.63 of every new marketing dollar toward AI commerce tools and cashback and savings apps rather than traditional digital advertising as they look keep pace with value-driven, AI-assisted shoppers, according to new research from Northwestern University’s Retail Analytics Council and Minty.
Two thirds of marketers believe AI will be their primary shopping gateway for reaching shoppers in 2027, and more than half are pairing AI with savings ecosystems. Only 18% believe traditional search will be their primary way to reach shoppers, and only 13% see social in that role in 2027. Seventy-nine percent of those surveyed expect their primary customer to be assisted by AI in 2027.
Cashback apps, deal platforms and price-comparison tools now outrank advertising, loyalty programs, retail media and creator marketing as the most helpful channels for shoppers. The majority (81%) of respondents agree that cashback and savings tools are the most helpful form of marketing for shoppers making purchase decisions.
“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."
Other findings are below:
•Half of the marketers are prepared to market to AI agents and 38% are running proactive commerce (total value messaging delivered to shoppers before their behavior triggers traditional marketing messaging). Another 36% are moving toward proactive commerce.
•Among those who see the shift to AI and proactive commerce, 61% are increasing investment or reallocating budget toward cashback and savings apps. Internally, across brands, these channels are being promoted from tactic to infrastructure with 16% of leaders calling it "core or strategic" in marketing today, but 41% expect it to be so by 2027.
•They are also elevating cashback and savings apps in performance marketing budgets from 18% today to 30% in 2027.
“Buying decisions are moving earlier in the e-commerce purchase funnel," noted Rodney Mason, chief marketing office 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.”
Methodology
The survey canvassed 150 senior commerce decision-makers across industries including apparel, beauty and personal care, CPG, consumer electronics, general merchandise, health and wellness, home and furniture, sporting goods and outdoors, toys, games and hobbies and travel and hospitality.
Retailers made up 50% of the field, with brands and manufacturers at 38% and marketplaces at 12%.
