There is a widening gap between thriving ecommerce businesses and those struggling to keep pace, reveals the latest edition of The Readout, the quarterly ecommerce marketing report by Nest Commerce.
The Readout is based on the global data from more than 40+ ecommerce brands, responsible for more than £100M of annual media spend.
The report reveals that brands adopting a full-funnel strategy, encompassing awareness, consideration, and conversion, saw a 38% YoY increase in average conversion rate in Q4. This compares to a 28% decline for brands focused only on bottom-of-funnel activities.
Will Ashton, CEO of Nest Commerce, commented: “2025 is set to be a tumultuous year. Growth is available, but it’s not being distributed evenly. The gap between brands doing very well, and those that are struggling, is not just visible – it’s visceral. Companies are feeling it in their bones. Those clinging to outdated, channel-siloed strategies risk being left behind.”
Based on the results of its latest research from Q4, Nest reveals a clear playbook for success: multi-channel expertise, continuous creative rotation, and a “funnel-first” approach.
Ashton said: “The playbook for winning is clear and proven by our Q4 data. Brands should prioritise a funnel-first paid media approach, mapping channels to each stage, based on audience and objectives. Strong creative strategy and continuous rotation are essential, using automation for ad optimisation to combat fatigue. Finally, a progressive international strategy is crucial for scaling and mitigating economic risks.”
The report stresses the critical need for strong, evolving creative strategy across all platforms, avoiding over-reliance on any single one. Brands investing in fresh, engaging creative across video-first platforms like Reels and TikTok, are seeing significant returns. Reels spend more than doubled YoY in Q4, with a remarkable 70% increase in CTR, further highlighting the importance of dynamic video-first content. Meanwhile, despite threats of a ban, TikTok spend soared 115% in Q4 with a 152% increase in average conversion rate.
Supporting this activity, platform-tailored creative delivered an average of 55% higher Return on Ad Spend (ROAS) compared to brand-produced creative.
The Readout also emphasises the importance of a progressive international strategy. Brands looking to mitigate economic challenges at home and unlock further growth potential are increasingly turning to global markets. The report suggests that brand building needs to be a focus from day one in new territories.
