As the 2023 holiday season approaches, Diray Media is closely monitoring evolving consumer purchasing trends, heralding a new era in holiday shopping. This year, the introduction of early sales events and the growing influence of digital marketplaces have significantly altered traditional shopping patterns.
Early Deals
The decision to launch a second Prime Day in October has been a game-changer, spurring consumers to open their wallets earlier than usual, moving away from the once-ubiquitous Black Friday focus. This indicates a significant shift in retail strategy, where enticing deals are no longer delayed until the traditional Black Friday stampede.
Mobile Spending
Gen Z’s tech-savviness and mobile-first preferences are reshaping marketing approaches. With smartphones surpassing desktops as the primary shopping tool, Adobe Analytics projects a 14% rise in smartphone spending, highlighting a decisive turn towards mobile-based transactions this holiday season.
Gen Z, while favoring mobile-first content, they also exhibit a diverse content appetite. Research will tell you that Gen Z likes to watch YouTube, but that doesn’t mean they want to watch YouTube-style content on streaming TV. “We love digging into great long-form storytelling, content that leads to a great conversation.” This highlights the significance of adopting an omnichannel approach, catering to their varied content preferences across different platforms.
Diray is aptly navigating the evolving marketing landscape with a Total Video Strategy that capitalizes on omnichannel marketing, encompassing mobile, desktop, and TV platforms. In a world where customers are constantly connected across various devices and channels, adopting a holistic targeting approach is crucial. This multi-channel strategy is tailored to the customer journey, which often spans multiple channels. It acknowledges the common habit of consumers using multiple screens simultaneously, like browsing on mobile while watching TV or during breaks at work. For example, when a commercial appears on YouTube, Diray can prompt immediate action through QR codes or URLs, capitalizing on the viewer’s readiness to engage with their mobile device. Research indicates that 32% Roku streamers discover new brands while streaming, and 44 % engage in online shopping during this time.
Customers use a variety of devices and channels these days, so it’s important to approach your targeting strategy holistically. This way, you’re able to reach your target audience where they are: which is everywhere. Audiences exposed to TV ads are more inclined to purchase from those brands, compared to exposure on other platforms. This is attributed to TV’s expansive reach and heightened engagement levels. TV advertising not only endows brands with a sense of legitimacy and trust but also profoundly influences consumer behavior. The synergy of TV ads and social media campaigns further elevates this impact. Social media serves as an enhancer, reinforcing the messages from TV ads and weaving a consistent brand story across various platforms. This integration boosts brand recall and strengthens the consumer-brand bond, thereby increasing the likelihood of purchases. Additionally, retargeting strategies are employed to re-engage users who have shown interest, guiding them towards conversion.
Diray’s strategy reflects a nuanced understanding of the interconnected nature of today’s digital world. Mobile devices remain primary for shopping, but their effectiveness is amplified when integrated with content on larger screens like TVs. By combining social media channels with linear and CTV advertising, Diray drives conversions and gains insights into audience engagement. The real-time aspect of social media allows for swift responses to TV ad reactions, targeting specific audience segments with pertinent messages. This comprehensive approach ensures a strong brand presence across all screen types, underscoring the importance of TV in the digital marketing mix.
Gen Z Effect
This approach extends to social media, a key channel for engaging with Gen Z, who has been immersed in technology from a young age. Unlike the digital environment familiar to millennials, today’s social media platforms, like Instagram and TikTok, are more commerce centric. Insider Intelligence notes that 19.1% of Gen Z’s purchasing decisions in the past year were swayed by influencer or celebrity marketing. This highlights the impact of both micro and mega influencers, especially for Direct-to-Consumer brands.
With the same momentum, this demographic’s optimistic financial outlook and willingness to spend on non-essentials are redefining the meaning of holiday indulgence. Data aligns with recent findings that Gen Z is setting aside a significant portion of their income for holiday spending, eclipsing other generations by a remarkable margin. To make these purchases more appealing, numerous retailers are offering unprecedented discounts. Discounts are projected to reach all-time highs, with toys potentially being offered at 35% off, electronics at 30%, and apparel at 25%. These trends are not only relevant for this season but are also expected to gain momentum into 2024.
Shopping Preferences
We expect strong e-commerce growth this season on account of record discounts and flexible payment methods. The flexible Buy Now, Pay Later (BNPL) payment method is expected to set new records this season, driving $17 billion in online spending, up 16.9% YoY and $2.5 billion more than last year. BNPL has already seen strong traction this year and will continue to be adopted, especially during the holidays. An Adobe survey of over 1,000 U.S. consumers found that one in five respondents plan to use BNPL to purchase gifts this holiday season.
In anticipation of the most digitally driven holiday season to date, Diray is guiding its clients to capitalize on the early-bird consumer mentality, the mobile shopping surge, and the elevated emphasis on quality. As we navigate a landscape where trendiness takes a backseat to thoughtful gifting, Diray remains at the forefront, helping brands align with the nuanced expectations of today’s consumer, ensuring a merry and profitable holiday season for all involved.
Don’t miss out on this unique opportunity to transform your holiday campaigns. As we approach the holiday season, the power of television can significantly amplify your existing digital efforts. It’s not too late to harness this synergy for an unparalleled impact.
And if you’re pondering about the efficacy of TV advertising, stay tuned for our upcoming insight on why January is the ideal time to explore this medium. Dubbed the ‘golden window,’ it’s your prime opportunity to achieve maximum reach and effectiveness.
Partner with Diray now to ensure your brand resonates with the evolving needs of your consumers. Craft a strategy with us that exceeds expectations and capitalizes on this festive and promising period. More on this from us soon – stay connected for powerful insights and strategies!