Experiences refined for people
Marketers must be ready for a longer, unpredictable retail calendar, a spike in deal-hunting, and growing interest in social and video channels.
This unexpected mix of events offers marketers countless opportunities and potential missed moments within a fleeting four-month window. Major events like the Summer Olympics, a heated presidential election, and a shortened shopping season converge at the tail end of 2024.
Holiday ecommerce will continue to play a significant role in consumer spending, with a growing emphasis on convenience, affordability, and global access. The year will close on a strong note as consumers maintain steady spending, even amidst economic uncertainty.
Online shopping’s convenience has reshaped the holiday season, kicking off as early as October.
While the holiday season usually peaks in November and December, with big events like Thanksgiving, Black Friday, and Cyber Monday, early October sales are becoming a permanent fixture. Nearly half of consumers now begin their holiday shopping in October or even earlier.
This 2024 holiday shopping trend is primarily due to:
How will political ads impact the overall advertising landscape in the lead-up to the 2024 presidential election?
“In 2024, political ads will raise CPMs and create inventory shortages, especially in swing states and on CTV platforms.
Ads placed next to negative political content or misinformation also pose a risk. Advertisers should place their ads in premium, non-divisive environments, like Netflix which banned political advertising, and consider shifting spend to platforms that avoid political ads.”
Mobile searches for “Black Friday deals” shot up over 200% in the past two years.
After the holidays, searches for “gifts” and “presents” also spiked—January 2023 saw a 45% and 15% increase compared to September and October. This proves there’s year-round demand, and businesses can keep sales rolling long after the holiday season.
Many businesses aim to engage customers for the entire holiday season. They use a two-part strategy: start with early and consistent ads to attract new customers, then follow up with targeted retargeting.
MNTN’s two-part strategy in 2023—early prospecting combined with targeted retargeting—led to a 19% higher return on ad spend, 41% more impressions, and a 177% increase in revenue.
What motivates you when it comes to holiday shopping, given your busy schedule?
“Between working full-time and raising 2 kids with jam-packed schedules, I love online shopping after the kids go to bed. I try to shop in advance every year but always come close to the deadline. Confidence in a retailer’s fast (free) shipping and last-minute deals motivates me. I typically reserve in-person shopping for items that won’t ship in time or grab last-minute deals to supplement what I have already purchased online.”
Standing out requires understanding your customers’ preferences. Personalization and loyalty programs are essential for building lasting relationships and driving repeat business.
83% of consumers crave personalized offers, but only 44% find them relevant—leaving a big gap for retailers to fill.
Almost a third of U.S. adults love “wish list” features. They make it easy for shoppers to save, organize, and share what they’re considering, making the whole experience more convenient and personalized.
Birchbox gets it. They offer a wish list feature and sweeten the deal with 20% off when customers use it.
Loyalty programs are key to retaining customers. Exclusive discounts, early access, and rewards points give shoppers a reason to stick around. The numbers back it up: 60% value loyalty points, and 63% will spend more when perks are involved.
Retailers can also boost the customer experience with AI-driven tools like personalized recommendations and chatbots. With 53% of customers open to AI gift suggestions, personalized experiences are taking over fast.
61% of consumers say they can’t afford a wrong purchase this holiday season. The success of low-cost apps like Temu and Shein reflects this budget-conscious trend, with 69% of retailers expecting the demand for discounts to continue.
To meet this demand, retailers should shift from flash sales to consistent, sitewide discounts of up to 30%. Retail Dive found that 84% of retailers saw increased profitability, likely due to effective promotions.
KORTX can activate campaigns in 48 hours.
Amazon has set the bar for fast shipping. Customers now expect it from all retailers, even if it means paying a premium.
Free shipping is still a big driver, with over half of shoppers more likely to buy when it’s offered.
But rising shipping costs are a problem. Retailers who don’t want to pass those costs on need to find a balance between eating some of it and offering fast, reliable delivery to stay competitive.
Around 49% of consumers prefer a mix of online and in-store shopping. Retailers must create a seamless experience across online, in-store, and mobile platforms to meet customer expectations.
Retail executives have observed significant growth in fulfillment channel usage, with 83% reporting increased home deliveries and 81% noting a rise in ‘ship from store’ orders.
U.S. shoppers spent $16.6 billion on BNPL in 2023, up 14% from last year. This growth is fueled by tighter credit, rising adoption among Gen X and baby boomers, and new use cases.
Early holiday shoppers are jumping on board, with 31% using services like Affirm, Afterpay, and Splitit in 2023.
What role does “buy online, pick up in store” play in the shift towards digital sales channels?
“Both consumers and retailers are pushing the growth of buy online, pick up in-store (BOPIS). This shift means less in-aisle browsing, with sales—and product discovery—going digital. Physical store placement matters less, while digital visibility becomes key. For our clients breaking into their category, this is a chance to get ahead of where the market is heading.”
On Christmas Day, 63% of online sales came from mobile devices, showing the growing ease of phone-based shopping, even for last-minute gifts.
Mobile has overtaken desktop as the preferred shopping mode, with platforms like Temu and Shein thriving due to their mobile-first approach.
Platforms like TikTok, Instagram, and YouTube are key hubs for product discovery, with 54% of Gen Z, 45% of millennials, and 27% of Gen X using them for holiday gift inspiration.
However, while social commerce excels at discovery, many consumers still prefer to finalize purchases on traditional ecommerce sites or in stores. This highlights the need for smoother transitions to checkout.
What role do social media platforms play in driving holiday sales, and how can businesses optimize their social media marketing?
“Social media is one of the closest touchpoints between brands and customers. It lets companies show their personality while guiding users through the entire purchase funnel. With holiday spending on the rise, it’s a prime time to stand out and get in front of your audience. Create content that matches where consumers are in their buying journey, keep pushing content that brings in new eyes, and don’t hesitate to ask for the sale.”
Shoppers are opting for convenience, better pricing, and the ease of staying home, with 72% now favoring online over in-store shopping.
Still, physical stores aren’t out of the game. They continue to attract those who enjoy the hands-on experience and festive vibe.
Many consumers still prefer a hybrid shopping experience, blending online research with in-person shopping for its sensory appeal and festive atmosphere.
Physical stores also serve as fulfillment hubs, with options like BOPIS (Buy Online, Pay In Store) and Ship from Store offering flexibility.
Food and beverage will top holiday retail sales growth for the third consecutive year (+10.0%). CPG brands need strong shelf presence and visibility to capitalize on the increased traffic.
According to Chicory, 29% of consumers plan their holiday menus a month in advance, and 41% plan 2-3 weeks ahead. Timing your marketing campaigns with early menu planning boosts brand visibility and influences purchase decisions for holiday meals.
This is particularly important for grocery stores and big-box retailers, favored destinations for holiday shoppers seeking CPG products.
Online recipes engage shoppers during meal planning. With 85% of consumers using recipes while shopping, brands have a prime opportunity to connect with high-intent buyers.
Contextual, in-recipe ads seamlessly integrate products into relevant content. This can boost both sales and brand recall.
As privacy concerns rise, this strategy offers a data-friendly way to reach targeted audiences effectively.
The holiday season is a prime time for CPG sales, with food and alcohol being the top purchases for holiday celebrations and the top purchase for 2024.
As consumers focus on home entertaining and lower-cost categories, digital sales of food and beverages are set to soar by 17.7% YoY.
As we approach the holiday season, remember that adaptability is crucial. You’ll set yourself up for success by starting early, emphasizing in-store experiences, and engaging customers personally. Here’s to a season of sales prosperity and memorable customer interactions!
Let KORTX sleigh your holiday marketing goals. We craft campaigns that drive engagement, boost brand awareness, and fuel your bottom line.
Erik Stubenvoll is a Managing Director at KORTX with over twenty years of experience. When he is not learning about his clients’ goals, he is on the sidelines with his wife at his daughter’s softball and soccer games or on the golf course.
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