The year’s holiday shopping season has already started. However, this year is special because of the changing customer behaviors and economic uncertainties. To help marketers and brands understand shoppers’ preferences and shopping trends, Smartly.io conducted a study. Check out a few insights from the study.
This year’s holiday shopping season has already begun. But it seems to be a mystery for marketers and brands due to changing customer behavior and economic conditions. With the pandemic fears slowly receding, more people are returning to brick-and-mortar storesOpens a new window . They are also focusing more on product necessity, brand authenticity, and referrals. Many shoppers plan to start shopping early this year to find better deals. Simultaneously, high inflation rates and a possible recession are playing a spoilsport.Â
To better understand shoppers’ preferences and plans and the year-on-year (Y-o-Y) trends, Smartly.io recently conducted a study. Here are a few insights that can help brands and marketers.Â
Shoppers Plan Purchases Earlier This Year
About 40% of the study’s respondents plan to shop earlier this year. About 26% of the shoppers started shopping in September, and 23% planned to purchase gifts in October. Only 34% said they planned to shop around the same time as last year. A major reason for this is finding discounts and deals, as inflation impacts product costs.
See more: Let It Snow (Data, That Is): Key Strategies for Retailers To Implement This Holiday Season
Inflation Is Impacting Shopping Behavior
According to the Bureau of Labor Statistics, the inflation rate in September this year was 8.2%. This is one of the highest inflation rates in recent years and has affected how consumers shop for the holidays. According to a study by Bankrate.comOpens a new window , 40% of holiday shoppers felt inflation was changing how they shop. Most consumers are looking to save money when buying gifts. Many are also stressed when buying gifts, specifically due to inflation. Â
About 45% of this study’s respondents said they would either spend less or more cautiously when buying holiday gifts due to the economic conditions. About 20% are also unsure if and how their holiday shopping plans may change. So, while the economic conditions impact shoppers’ buying decisions, it also offers opportunities for brands and marketers to connect and engage with consumers in new and unique ways.
So, how are consumers interacting with brand adverting online? There are certain factors influencing their decisions to purchase through digital ads. Discounts ranked at the top, with 65% saying it is an important factor affecting their decisions. This is followed by brand trustworthiness, with 39% saying it is important. Personalization ranks third, with 31% saying it is a crucial factor.
This means that this year, ads offering coupons and discounts will be pivotal for businesses seeking to capture attention during the holiday shopping season.
Shoppers Get Gift Ideas From Creators
Brands need to be authentic and relatable to customers, both new and existing. Leveraging multi-platform strategies to create genuine connections using various platforms and channels is mission-critical for brands. Further, authenticity is the method of operation for reaching the target audiences. It helps consumers to view brands as other members of the digital community, creating a more personal connection. This creates an opportunity for brands to collaborate with creators on different platforms. About 66% of the respondents said that they were either very or very likely to engage with brands or products based on content from a creator/influencer they followed.Â
Consumers also have various sources of inspiration for buying their gifts. According to the study, the biggest source of inspiration (68%) was suggestions from family and friends. Social media ads and digital ads inspired 32% and 28% of respondents, respectively. Creators and influencers, too, have some influence. About 21% of respondents were inspired by influencer and creator content.Â
Shoppers’ sources of inspiration for buying gifts
Source: The Digital Advertiser’s Guide – Holiday2022Opens a new window
Relationship with customers is built over time and not through a single transaction. As such, authentic influencers and creators can build much in terms of brand recognition and connection.
Video Occupies Centerstage
Regarding ads, video is emerging as the preferred format, particularly short-form videos. Generation Z consumers particularly prefer videos as they look for visual content and experiences that feel genuine and unfiltered. According to the study, video and story-type ads grew in importance this year compared to last year than images or in-feed ads, as more consumers were most likely to purchase a gift item after watching a video. Images had a 10% lead on video last year at 39%, with videos getting 29% of the votes. This year, the votes for video/story ads rose to 33%, while the votes for images/in-feed ads dropped to 36%.
These changes may reflect the type of platforms from which consumers say they are willing to consider purchasing holiday gifts. Facebook remains a top choice among consumers (52%). However, YouTube took the second spot ahead of Instagram this year. About 39% said they would consider purchasing from YouTube (from 34% last year), while 37% said they would consider buying from Instagram. TikTok, too, grew in popularity (from 18% last year to 24% this year).
Social media platforms shoppers would consider making a purchase from for holidays
Source: The Digital Advertiser’s Guide – Holiday2022Opens a new window
With 62% saying they are open to purchasing from a social media ad, there is an opportunity for brands to connect with their audiences in unique and authentic ways.
The Opportunity for Brands
In recent years, holiday shopping has been spread over a few months instead of a couple of months. Since shoppers have already started making purchases this year, brands should focus on garnering consumer attention now. Timely planning and meeting consumers where they are is a recipe for success. But getting the strategies aligned across multiple platforms can be challenging. Here are a few strategies to prepare for the holiday shopping season.
Be prepared for this year’s unique challenges
New considerations and drivers are driving marketing this year, such as economic uncertainty, data privacy, and scaling back of ads post the pandemic ecommerce boom. Hence, brands should plan accordingly. Further, campaigns may see a degraded performance since seasonality and demand may impact delivery times and bids. Holidays also bring major changes to creative design, and a huge volume of campaigns may increase the chance of encountering problems.
Organize now
If you haven’t already done so, organize your assets, make sure catalogs are running smoothly, get your products up to date, and add seasonal elements to make a bigger splash with target audiences. Strategizing early, testing, and applying the learnings will help you succeed during the holiday season.
Invest in creator content
Creator content is a unique way to incorporate word-of-mouth advertising into a digital format. Since creator content looks like everyday content shoppers already consume, it appears more authentic than traditional ads. Leveraging the human element appeals to audiences looking for experiences where they feel connected.
See more: Experimentation Everywhere: Create Online Shopping Experiences To Win This Holiday Season
Go multi-platform
This year will be crucial for multi-platform strategies as more consumers are showing up across various digital platforms. Being present on different platforms helps advertisers tap into their advantages. Running ads across these different platforms helps brands reconnect with shoppers who may be considering purchasing products or have even abandoned the cart.
The Step Forward for Brands and Marketers
It is clear from the study that increasing product prices, and specifically the inflation this year, are compelling shoppers to shop early to get better deals. They are also giving top priority to discounts and deals on products. Hence, this is the right time for brands to connect with consumers with the right offers. While trustworthiness and personalization have slightly decreased in ranking, they are still crucial factors. Hence, collaborate with influencers and creators on multiple platforms to build trust, connect, and engage with consumers better and win during the holiday shopping season.
What strategies have you put in place to attract more shoppers this holiday season? Share with us on FacebookOpens a new window , TwitterOpens a new window , and LinkedInOpens a new window .
Image source: Shutterstock
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