This article was based on the interview with Jean-Christophe Pitié from Contentsquare by Greg Kihlström, e-commerce keynote speaker for The Agile Brand with Greg Kihlström podcast. Listen to the original episode here:
Brands are facing unprecedented challenges characterized by rising customer acquisition costs and declining organic traffic. As highlighted by Jean-Christophe Pitié, Chief Marketing and Partnerships Officer at ContentSquare, a recent industry analysis of 238 billion retail page views reveals a concerning trend: while paid traffic is on the rise, organic traffic is experiencing a significant downturn. This phenomenon poses critical questions for marketers and business leaders alike: How can brands adapt to this shifting environment, and what strategies can they employ to thrive amidst these challenges?
The State of Digital Customer Experience
The data presented by ContentSquare indicates a stark reality for many brands. Overall traffic to websites has decreased by 3%, with retail traffic dropping even more steeply at 5%. This decline is compounded by an increase in paid traffic, which has risen from 37% to 39% of total site visits. The implications are clear: brands are investing more in paid channels to compensate for the loss of organic reach, leading to a situation where they are “paying more to get less.” This shift not only strains marketing budgets but also highlights a fundamental issue in customer engagement strategies.
One of the most alarming findings is that 40% of session visits on customer websites are plagued by frustrations—issues such as errors, bugs, and poor user experience. This phenomenon, which Pitié refers to as “haunted” sessions, indicates that even as brands invest more in acquiring traffic, they are simultaneously losing potential customers due to inadequate digital experiences. The slight improvement in frustration levels—from 41% to 40%—is a silver lining, but it underscores the need for brands to prioritize user experience in their digital strategies.
Understanding the Causes
The reasons behind the rising costs and declining organic traffic are multifaceted. Pitié describes it as a “butterfly effect,” where various factors collectively contribute to this challenging landscape. Key drivers include:
- Algorithm Changes: Frequent updates to search engine algorithms can disrupt organic traffic patterns, making it more difficult for brands to maintain visibility without investing in paid advertising.
- Shift in Consumer Behavior: As consumers increasingly turn to platforms like TikTok and other social media for shopping and engagement, traditional search methods are losing ground. Social media generally converts at lower rates compared to paid search, further complicating the customer acquisition process.
- The Rise of Artificial Intelligence: The growing influence of generative AI and chatbots alters how customers interact with brands, often leading to different conversion rates and engagement strategies.
These interconnected factors create a perfect storm for marketers, where the cost of acquiring customers increases while the effectiveness of those efforts diminishes.
Industry-Specific Pressures
The impact of these trends is not uniform across all sectors. Certain industries, such as home goods, consumer electronics, and fashion, are feeling the pressures more acutely. Brands in these sectors must navigate heightened competition and shifting consumer preferences, making it essential to identify and adopt best practices to mitigate the effects of rising costs and declining organic traffic.
Top-performing brands are distinguishing themselves by leveraging data analytics to enhance customer experiences and optimize marketing strategies. By utilizing tools like ContentSquare, these brands can gain insights into user behavior, identify pain points, and make informed decisions to improve digital experiences. For instance, brands that prioritize user-friendly website design and seamless navigation can reduce frustration rates and retain customers more effectively.
Moreover, successful brands are diversifying their marketing channels and exploring innovative approaches to engage consumers. This includes investing in content marketing, influencer partnerships, and experiential marketing to create meaningful connections with their audiences. By focusing on building brand loyalty and fostering community engagement, these brands can offset the challenges posed by rising costs and declining organic traffic.
The landscape of digital marketing in 2025 is fraught with challenges, as rising customer acquisition costs and declining organic traffic create significant hurdles for brands. However, by understanding the underlying causes and adopting strategic approaches, marketers can navigate these complexities effectively. Prioritizing user experience, leveraging data analytics, and diversifying marketing efforts are essential steps for brands seeking to thrive in this new environment. As the digital world continues to evolve, staying agile and adaptable will be crucial for brands aiming to succeed in an increasingly competitive landscape.
