E-commerce marketers shift budgets to AI & cashback

Northwestern University's Retail Analytics Council and Minty have published research showing that eCommerce marketers plan to direct 63 cents of every new marketing dollar to AI commerce tools and cashback and savings apps, rather than traditional digital advertising. The findings point to a marked shift in how brands expect to reach online shoppers.

The survey covered 150 senior commerce decision-makers, 98% of whom worked at companies generating more than USD $100 million in annual revenue. Respondents represented sectors including apparel, beauty, consumer packaged goods, consumer electronics, home, sporting goods, toys and travel. Retailers made up half of the sample.

The data suggests marketers believe shoppers are increasingly relying on AI tools and savings services to compare prices, find promotions and assess alternatives before making a purchase. As a result, budgets are shifting away from traditional search, social advertising and other established digital marketing formats.

According to the research, 79% of respondents expect their primary customer to be assisted by AI in 2027. Two-thirds said AI would be their main shopping gateway for reaching shoppers by then, compared with 18% for traditional search and 13% for social platforms.

Cashback apps, deal platforms and price-comparison tools ranked above advertising, loyalty programmes, retail media and creator marketing among the channels marketers see as most useful to shoppers. The study also found that 81% of respondents agreed cashback and savings tools are the most helpful form of marketing for consumers making purchase decisions.

Changing budgets

The budget reallocation appears to be under way rather than theoretical. Among respondents who recognised a shift towards AI and what the study calls proactive commerce, 61% said they were increasing investment in, or moving budget towards, cashback and savings apps.

Those channels are also gaining status within marketing departments. While 16% of leaders described cashback and savings apps as core or strategic today, 41% expect to do so by 2027.

Performance marketing budgets are changing as well. Marketers expect the share allocated to cashback and savings apps to rise from 18% today to 30% in 2027.

Another notable finding concerned readiness for AI-driven shopping. Half of respondents said they were prepared to market to AI agents, suggesting brands increasingly expect automated systems to play a role in product discovery and purchase decisions.

Earlier influence

The report argues that purchase decisions are moving earlier in the online buying process. It describes proactive commerce as an approach in which marketers deliver value-focused messages to shoppers before a search, click or abandoned basket triggers more familiar forms of advertising.

On that measure, 38% of respondents said they were already practising proactive commerce, while a further 36% said they were moving in that direction. More than half of those surveyed said they were pairing AI with savings ecosystems as part of that effort.

The survey group's composition adds commercial weight to the results. Nearly a third of respondents came from businesses with revenue above USD $1 billion, and 88% said they were sole or joint decision-makers for commerce spending.

Frank Dudley, Associate Director of the Retail Analytics Council at Northwestern University, said the findings reflected a deeper shift in shopper behaviour and the way brands must respond.

"This isn't marketers tweaking a line item," he said. "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 maximise value, brands are reallocating investment toward the channels and capabilities that influence those decisions."

The research also indicates that marketers see AI systems and savings ecosystems displacing the traditional distribution layer of commerce. In practical terms, brands are focusing less on waiting for consumers to search and more on appearing within the tools consumers use to narrow their options before visiting a retailer's website or marketplace listing.

Rodney Mason, Chief Marketing Officer at Minty, echoed that view. "Buying decisions are moving earlier in the eCommerce purchase funnel," he said. "Proactive commerce, delivering total-value messaging to shoppers and their AI agents before they search, click or abandon a cart, is already being practised by the largest market leaders, and the majority of respondents intend to do so in 2027."