From Goods To Services: Who Will Be Left In The Dark?

Analyst Abhinav Kapur stated that millennials are the coveted customer at the heart of the journey. The group is expected to spend $200 billion annually, starting in 2017 and $10 trillion in their entire lifetimes.

For marketers and sellers, BTIG noted the holy grail is tracking the digital footprints of the customer from awareness through conversion and then engaging them in loyalty and advocacy. Therefore, the firm believes software solutions that enable this and leverage data along the way are long-term winners in the space.

Key Takeaways

1. The $340 billion e-commerce spending in 2015 accounted for only 5 percent of the retail sales, with the penetration expected to rise to 10 percent in 2019 and to 15 percent by 2033. Thus, we are in early stages of a multi-decade opportunity.
2. Digital media ad spending is expected to eclipse $100 billion by 2020. The rise of MoSoLo (mobile, social and local) will route future advertising budgets to digital channels at the expense of print, radio and television.
3. Technological evolution is driving the convergence of marketing and commerce. The concept of everywhere consumers is made possible by the smartphone era and the ubiquity of the internet.

Ratings/Price Targets

• Adobe Systems Incorporated ADBE: Initiating at Neutral.
• Bazaarvoice Inc BV: Initiating at Buy/price target $8.
• ChannelAdvisor Corp ECOM: Initiating at Neutral.
• HubSpot Inc HUBS: Maintain Neutral Rating.
• Shopify Inc SHOP: Initiating at Buy/price target $55.

At the time of writing: