Some AC programmers may be considering a “Christmas in July” stunt for this week — Mariah Carey, anyone? — but in the marketing world serious attention is already on fourth-quarter promotions. From early holiday marketing to social shopping and the “Election Effect,” CMOs are tracking several factors heading into the holiday ad season.
“The 2024 holiday season is requiring nuanced strategies from marketers to capture spend amidst a backdrop of inflation and evolving consumer sentiment,” the sales software company Winmo says in a report focused on holiday spending. It says marketers are “cautiously optimistic” that inflation will not cut into sales. And it also points out that after a big election, like what is on tap for November, there is typically an uptick in holiday spending. “Marketers are preparing for similar consumer behavior in 2024, regardless of the election outcome,” it says.
That optimism, tempered with the reality that many consumers will need to be more strategic with their spending, has led some brands to start their holiday ad spending even earlier. Winmo points out that some brands began ad campaigns as early as September last year.
“Expect earlier ad buys and in-store promotions this year,” the firm predicts. It also expects to see more “Buy Now, Pay Later” (BNPL) promotions to address any potential issues with inflation. “The popularity of BNPL options is soaring, with significant increases in BNPL spending on groceries and e-commerce. Marketers integrating BNPL in their offerings are well-positioned to capture consumer interest,” Winmo says.
The report also notes that the holiday season is not just growing on the front end. It points out that Hispanic consumers, particularly those celebrating Three Kings Day, extend the holiday shopping season into January, which offer some brands unique marketing opportunities.
Winmo identifies 10 brands that it expects will be key players in the 2024 holiday ad marketplace. They include Verizon Communications, which spent an estimated $161.7 million on media during Q4 last year. Also on the list are Walmart ($140.5 million), Build A Bear Workshop ($336 million), Macy’s ($57 million) and Sephora ($6.9 million).
“While you may not yet feel that festive spirit, July through September is a crucial time to plan and develop your holiday advertising strategy,” says The Trade Desk. In a blog post this month, it advised marketers to get going on their holiday ad planning. “Pre-holiday planning is an important first step in setting yourself up for success this season. You’ll need to be able to reach customers wherever they consume media, to be there at every step of their journey — from discovery to consideration to finally making a purchase,” it says.
To make the most of sales potential, The Trade Desk suggests CMOs consider starting their holiday campaign planning by determining which audience segments are the best fit for their brand and overall marketing goals. They should start by defining the most valuable customers, also known as the seed, it says, and then brands can use tools like AI-powered targeting to hone-in on specific audience segments.
“A holistic, omnichannel approach to your holiday advertising strategy means you can work towards reaching customers at every step on their paths to purchase,” advises The Trade Desk, telling marketers, “You’ll likely want to make sure your brand message gets to the consumers watching a holiday movie on Connected TV, listening to Mariah Carey on Spotify, and/or checking out popular gift guides online.”
While it is still early, eMarketer analysts forecast holiday sales will climb 5% in 2024 compared to a year ago. The good news for broadcasters is that 80% of sales are still expected to happen in-store, despite the rise of mobile and digital shopping.
Download Winmo’s 2024 Holiday Spenders report HERE.
Kommentare