Just when you thought it was safe to savor a pumpkin spice latte as summer eases into autumn, the holiday shopping season is here. Yes, retailers are getting prepared already for the 2024 holiday season. Officially, the season kicks off around Black Friday. But in reality, Amazon’s Fall Prime Day, starting as early as October 8, will really trigger the shopping frenzy. This means Target and Walmart will respond in kind with their own promotions, and all three companies will be advertising their deal days in September. In other words, we are only days away from the start of the season. Here are some trends advertisers should be aware of:
Plan Around the Election Year
The U.S. presidential election will have an impact on holiday advertising prices. Historically, political campaigns heavily influence ad prices, particularly in October and early November during an election year. As political campaigns ramp up, they pour significant amounts of money into digital, TV, and social media ads, driving up demand for ad space. This surge in competition can lead to higher cost-per-impression (CPM) and cost-per-click (CPC), making it more expensive for advertisers to maintain the same level of visibility.
To avoid competing with the massive influx of political ads, consider shifting a portion of your holiday ad spend to earlier in the season—particularly in September and the beginning of October—before political campaigns peak. This strategy will allow you to capture early holiday shoppers at a lower cost before election-driven price hikes take effect. Additionally, consider reallocating some of your ad budget to platforms less affected by political ads, such as connected TV (CTV) and in-app mobile ads, discussed below. These platforms may experience less competition from political campaigns and can offer more stable ad prices.
Because AI tools can dynamically adjust ad placements based on real-time market conditions, they can help you avoid overbidding during periods of peak political spending. Programmatic platforms also allow for more granular control over where and when your ads appear, helping you optimize your budget allocation to focus on less crowded and more cost-effective channels.
Embrace Early Holiday Shopping Behavior
Programmatic advertising will also help you manage around the likely spike in shopping behavior that will be caused when Amazon, Target, and Walmart kick off their holiday promotions as early as October. Start programmatic ad campaigns in late September to capture early shoppers who are motivated by these early deals. Leverage real-time bidding (RTB) to dynamically adjust your ad spend based on observed surges in search behavior, particularly around key promotional events like Prime Day. By bidding strategically during these peak periods, you can achieve lower CPMs and stretch your advertising budget further. Additionally, focus on creating a strong remarketing strategy to re-engage early shoppers with personalized ads that highlight new deals or remind them of products they previously viewed. This tactic ensures that your brand remains top-of-mind as they continue their holiday shopping.
Apply AI-Driven Holiday Shopping Insights for Hyper-Targeted Campaigns
The holiday season provides a wealth of data that can be leveraged to create highly effective, targeted campaigns. By utilizing AI-driven insights, advertisers can refine their holiday strategies to better align with consumer behavior and maximize impact.
AI for Predictive Analysis
AI can analyze past holiday season performance data to identify patterns and predict future behavior. For example, AI can determine the optimal times to launch specific promotions based on previous years’ shopping trends, such as when consumers are most likely to buy gifts for family versus friends. This allows you to time your campaigns perfectly, ensuring they reach your audience when they are most likely to convert.
AI-Powered Audience Segmentation
AI can segment your audience based on nuanced holiday shopping behaviors, such as identifying early planners who start shopping in October versus last-minute shoppers who make purchases in mid-December. By understanding these segments, you can tailor your messaging accordingly—offering early bird discounts for the planners and last-minute shipping deals for the procrastinators. AI can also help you identify which products are likely to be most popular with each segment, allowing for more personalized and relevant ad content.
Dynamic Creative Optimization (DCO) Enhanced by AI
AI-driven DCO enables you to automatically adjust your ad creatives in real-time to reflect the changing holiday context. For example, as the final shipping day before Christmas approaches, AI can shift your ad messaging to emphasize urgency, using countdown timers and reminders about last-chance deals. Additionally, AI can personalize these ads for individual users, showing them products they’ve previously viewed or items that complement their recent purchases, wrapped in festive holiday themes.
Capitalize on Connected TV (CTV) Advertising with Sequential Messaging
Connected TV (CTV) advertising has become indispensable, particularly during the holiday season when consumer attention is fragmented across multiple devices. To fully capitalize on this, employ sequential messaging strategies that guide viewers through the purchasing funnel with a cohesive narrative spread across multiple ads. For example, start with awareness ads in early October that introduce your brand or seasonal offerings, then transition to consideration ads in November that highlight product features, reviews, or limited-time discounts. Finally, close with conversion-focused ads in December that emphasize urgency, such as countdowns to the end of a sale or last-minute gift ideas. This approach not only keeps your brand consistently in front of potential customers but also builds a compelling story that encourages engagement and conversion. Use cross-device tracking to ensure your messaging is consistent and reinforces your brand across all platforms, increasing the likelihood of conversion.
Optimize for Mobile Holiday Shopping with In-App Advertising
Mobile shopping continues to dominate, accounting for nearly half of all online holiday sales. To optimize for this, ensure your digital advertising strategy includes in-app advertising campaigns. Focus on popular shopping apps and social platforms like TikTok, Instagram, and Facebook, where users are highly engaged and likely to make impulse purchases. Use deep linking in your ads to direct users seamlessly to specific product pages or promotional offers within your app or mobile site, reducing friction and improving conversion rates. In addition, consider using shoppable ads that allow users to purchase directly from within the ad itself, streamlining the shopping experience. With the rise of social commerce, integrating these mobile-specific strategies can significantly boost your holiday sales and enhance customer satisfaction.
Respond to Price Sensitivity with Value Messaging
Given the current economic environment, price sensitivity is at an all-time high among consumers. So, craft value-driven messages that not only highlight discounts and promotions but also emphasize the long-term benefits and quality of your products. Implement consistent, sitewide discounts to appeal to budget-conscious shoppers who are actively seeking out deals. Additionally, incorporate AI-driven personalization to offer targeted discounts to specific customer segments based on their shopping behavior and preferences. This could involve personalized email campaigns that offer exclusive deals or early access to sales for loyal customers. Further, emphasize incentives such as free or discounted shipping, which have been proven to significantly affect purchasing decisions during the holiday season. By addressing price concerns directly and offering tangible value, you can build trust and encourage repeat purchases.
Contact True Interactive
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