Win the Holiday Season … Without the Headache

In a tough economic landscape and presidential election year, it’s important to know the right strategies to win the holidays amid these challenges. After all, in times of uncertainty, people are less apt to spend their hard-earned dollars. With the holiday season approaching, this might be worrying for some marketers and retailers. Not only for their bottom lines, but also for budgets, as marketers adjust and allocate to accommodate shifts in consumer behaviors.

Let’s look at the evolving landscape of holiday shopping, including strategies on planning and fine-tuning advertising efforts for the 2024 season and beyond.

Shifting Shopping Timelines

Gone are the days of the traditional holiday shopping season, when consumers would wait for Black Friday and Cyber Monday for the best deals. With the influx of shopping days throughout the year (e.g., Amazon Prime Day, Target Deals Week), consumers are inundated with sales. Holiday shopping continues to start earlier and earlier, with many consumers now planning to start their shopping before September even arrives.

Earlier sales are crucial for brands, especially as we move into the holiday season, as consumers have a mindset focused on shopping for deals whenever and wherever, with a focus on price sensitivity. Retailers that start promotions and messaging earlier in the season will see better results, especially as the economy continues to cause turmoil. And this year, the election is causing even more headaches for some consumers, who are uncertain about where the future lies.

Planning ahead, whether for the next tentpole event or shopping period, is critical. Because if you don’t, your competitor will and the consumer will follow.

Discovery: The Real Power Behind Social Commerce

Beyond the shift in timelines, there’s been a stronger focus on social commerce. In 2024, 20 percent of U.S. digital buyers of all ages will likely purchase holiday gifts directly through social media, with Gen Z leading the way, coming in at 42 percent saying likely, according to new research. Although the majority of holiday shoppers are unlikely to purchase gifts directly through social media, there is a notable increase in interest — especially among Gen Z and millennials. And now, a growing interest from Gen X, who have Gen Alphas and Gen Z-aged children.

The secret to unlocking social commerce is all about discovery. While many users will follow their favorite influencers or brands on social, the act of purchasing through these platforms is still slow to adopt. Instead, most purchases happen off the social network, and on other platforms, like Amazon.com, Sephora, etc. Users might see something on their Instagram feed and go to Amazon to purchase. Brands should think holistically about e-commerce and not focus on the last-click mentality. Stop focusing on the bottom of the funnel and consider every touchpoint a consumer has before getting there. We live in a digital world — and consumers have the power.

Move Over Gen Z, There’s a New Kid in Town

We can’t talk about trends without talking about buying power. Today, Gen Alphas are the apple of every marketer’s eye. They're a new generation with the ability to influence buying power. They're the first digital-first generation — i.e., they grew up with YouTubers as their celebrities, influencers as their style icons. While the oldest Gen Alpha is only 14 today, the reality is they have an outside influence of what items are purchased, and where. Whether they’re asking for money from their parents or putting items on their holiday shopping list, they're the ones telling others what to buy.

What’s in and what’s out is based on their influence. Just look at the beauty/skincare industry, where this age group spent nearly $4.7 billion on beauty products in 2023. As tween skincare videos flood social media, they’re also visiting brick-and-mortar beauty stores to drop top dollar on brands like Drunk Elephant.

While parents might hold the wallets, Gen Alphas hold the power. For marketers, it’s more about understanding the power of the influencer and followers. Traditional ads won’t appeal to this audience. They want to hear it from their peers and TikTok.

Looking Ahead

While holiday shopping is still a tentpole time period for brands, the months leading up to it are the best time to look at your own data. Analyze it to find trends from prior holiday seasons, test new campaigns and ads to see what works, and understand your audience. It’s also a good time to put out certain inventory early to see how consumers react to it.

There will always be a last-minute shopping boost, and there will continue to be early shoppers. Catering to all audiences is what matters — however that looks for you. Be flexible and listen to your customers. Loyalty is key, no matter how they buy.

Maggie Nemoy is research and insights director at Basis Technologies. Nick Dunham is client strategy and insight partner at Basis Technologies. Basis Technologies is an automated and comprehensive advertising platform.