The holiday season is a crucial time for retailers, as they aim to maximize sales and capitalize on consumer spending. However, the landscape of holiday planning has evolved over the years, with different brands interpreting „the holidays“ in various ways. Trends in holiday season planning have shifted, and retailers are facing new challenges as consumers become more selective with their spending habits.
One notable shift in holiday planning is the extension of the holiday season, with retailers starting their holiday promotions earlier each year. For example, Halloween costumes, candy, and decorations can now be seen in stores weeks before Labor Day. This early start to holiday planning has blurred the lines between different holidays and created new opportunities for sales.
In 2008, a campaign called „100 days of Holidays“ was launched by „Better Homes & Gardens,“ starting before Halloween and running until New Year’s Day. This campaign marked a shift towards longer and more intense holiday promotions, setting the stage for the holiday season planning we see today.
This year, retailers are facing a shorter holiday season due to Thanksgiving falling late in November. This compressed timeline between Thanksgiving and the end of the year, which includes Christmas, Hanukkah, Kwanzaa, and New Year’s Eve, is putting pressure on brands to perform and maximize sales during a shorter period.
Despite some retailers anticipating a decrease in consumer spending, research from EMARKETER predicts a 4.8% increase in total holiday retail sales this year, up from the 3.9% growth rate seen in 2023. Digital shoppers are expected to allocate the most money to fashion, while computer and consumer electronics may lag behind due to decreased urgency for replacements post-pandemic.
One significant trend shaping holiday planning this year is the rise of connected TV (CTV) advertising. With consumers spending an average of two hours and 15 minutes daily watching CTV, shoppable CTV ads are simplifying the shopping experience for holiday shoppers. Brands can reach over 206 million second-screen users through CTV, creating new opportunities for engagement and sales.
Consumer behavior is also evolving, with over 60% of Americans stating they cannot afford to make the wrong purchase. This has led to a third of consumers starting their holiday shopping early, indicating a shift towards more selective spending habits. Additionally, overwhelming choices and information can lead to consumers walking away from purchases, highlighting the importance of providing relevant and concise information to consumers.
To navigate these trends, digital marketers must be creative and agile in their approach. Utilizing CTV, optimizing the media mix, investing in human creative talent, and offering streamlined user experiences are key strategies for success during the holiday season. By adapting to consumer trends and providing engaging experiences, brands can maximize sales and create memorable holiday campaigns.
In conclusion, the holiday season presents both challenges and opportunities for retailers. By staying informed about consumer trends, leveraging new technologies like CTV, and focusing on creative and targeted marketing strategies, brands can navigate the evolving holiday landscape and drive success during this crucial time of year.