Tips for Winning the 2022 Holiday Shopping Season

Tips for Winning the 2022 Holiday Shopping Season

Retail

How is the 2022 holiday shopping season shaping up? We’re already getting some important clues. Here’s what we are learning:

1 It’s Already Here

According to Google, nearly one out of five consumers had started their holiday shopping, and more than a third (36 percent) already had ideas for gifts they were going to buy – back in May!

Retailers are ready for them. In August, Walmart unveiled its annual top toy list, nearly a month earlier than in 2021. And when Walmart acts, others follow. Retailers should expect Best Buy, Target, and Amazon to dial up the heat on Walmart by promoting their holiday deals sooner.

2 Consumers Are Cost Conscious

Amid high inflation, retailers expect consumers to be choosier and cost conscious. Walmart’s top toy included a new budget-friendly category — toys under $25. According to Walmart, Walmart the list includes “more Rollbacks on toys” to give consumers “deeper savings” on top of “everyday low prices.”

And Walmart is not alone. As reported in CNN, executives at stores such as Best Buy, Gap, and Ulta expect the holiday season to be loaded with discounts amid economic uncertainty:

In addition to toys, shoppers will likely find discounts on clothing, televisions, beauty products, sporting goods and other items.

Some chains have stockpiled too much inventory in recent months and will increase promotions to try to sell the glut of goods during the holiday stretch.

Other companies are also ramping up promotions to give incentives to inflation-strained shoppers who might otherwise be priced out of holiday gifts.

Best Buy CEO Corie Barry told CNN, “We’re seeing a customer who’s more value-oriented, who is definitely moving more towards some of those sale events. You’re going to see a holiday that starts to look a little bit more like what we saw pre-pandemic.”

What It All Means

  • A bigger Black Friday? Black Friday 2021 proved to be a return to pre-pandemic form, with sales increasing nearly 30 percent over 2020. Traditionally, consumers have been conditioned to expect doorbuster sales on this most hallowed of shopping days, but in recent years, retailers have reimagined the concept of Black Friday to feature Black Friday sales that happen long before the actual day. But in 2022, retailers will be eager to shed excess inventory to budget-conscious consumers, positioning Black Friday to reclaim its stature.
  • Retailers need to be nimbler with their ad campaigns. It’s not just that retailers need to plan earlier. They need to adapt to shifts in consumer behavior. Why? Because choosy consumers are going to be less brand loyal and more careful about looking for deals online, which could cause rapid shifts in demand at the store and product level – in your favor and sometimes in a competitor’s favor. We suggest capitalizing on tools such as Google’s demand forecasts on the Insights page. This predicts upcoming trends relevant to your business so that you can adjust your budget and bidding strategy to capture spikes in demand. Additionally, use Performance Planner to understand how these changes to your advertising spend will affect your predicted clicks, conversions and conversion values. In addition, Product-specific insights are now at your disposal at the account level in the Google Ads products tab. These insights let you spot underperforming offers, identify products with missing feed attributes and compare your bidding strategy with your top competitors’.

Contact True Interactive

True Interactive has deep experience helping clients plan and implement holiday shopping campaigns online. We can help you, too. We understand how to create nimble search campaigns and multi-channel ad outreach to target consumers with the right message at the right time. Contact us to learn more.

Image source: https://unsplash.com/photos/_3Q3tsJ01nc

2021 Holiday Ads: Hope and Realism

2021 Holiday Ads: Hope and Realism

Advertising

Ready for some memorable holiday ads? In response to widely reported supply chain issues, some brands have teed up their holiday ads to come weeks ahead of traditional schedules. And as was the case last year, the campaigns are tasked with addressing the elephant that hasn’t left the room: Covid-19 and its lingering effects. If striking the right tone somewhere between hope and realism can be tricky, a few reliable themes — from connection to music, humor, and cheer — are helping brands thread that needle. Here are some examples:

Connection

We may live in divided times, but Etsy’s hopeful Give More Than a Gift campaign for 2021, which highlights unexpected connections, reminds us of our best selves. In one spot, a friendship springs up between two people from different walks of life. The tightly edited ad runs a mere 30 seconds, but it packs a wallop. The e-commerce company’s focus on unique, handmade items figures into the story, and the implicit message — that Etsy’s constellation of DIY sellers may help shoppers avoid the headache of larger retailers with supply chain issue delays — doesn’t hurt the brand, either.

Music and Surprise

The right music is key to a successful ad campaign, and brands have long been incorporating modern interpretations of classic hits in hopes of connecting with shoppers on a nostalgic level. In fact, according to Chelsea Gross, director analyst at research firm Gartner, nostalgia is particularly resonant this year as consumers potentially gather with loved ones after a year or more of pandemic-era separation.

For financial reasons, advertisers don’t always use the original song. It’s also worth noting that employing a cover can also add a unique spin, beyond the song’s original interpretation, to a nostalgic favorite. Consider the spot from Dutch e-tailer Bol.com, which is set to a cover of Cyndi Lauper’s “True Colors.” In the ad, a boy who originally asked for a doll turns the soccer ball he got instead into an imaginary friend. Cue all the expected cozy feelings — but Bol.com is mining a different theme here, and an unexpected twist at the end of the spot gives Lauper’s familiar song added resonance. (Spoiler alert: this kitten has claws!) By subverting expectations — of a familiar song, of a storyline that, at least initially, seems familiar — the brand grabs our attention.

For a brand like Amazon, deep pockets can mean the freedom to use a song in its original incarnation. This year, the e-commerce giant debuts “Hold On” from Adele’s new album 30; the song hits a home run on several levels, playing backdrop to a spot that doesn’t shy away from the lingering challenges people face from the pandemic. The storyline isn’t overtly festive: two women share a quiet connection over their love of birds. But the ad, which is aligned with the launch of Amazon’s Christmas gift shop, covers a lot of ground, addressing mental health, loneliness, and the power of connection in a subtle two-and-a-half minutes.

Humor

Like Amazon, Extra gum isn’t afraid to look at the curveballs life can throw, but it takes a different tack, using humor to lean into some inconvenient truths about the holidays. As Extra spins it, while it’s great to be gathering for the holidays in a way 2020 simply didn’t allow, some time-honored traditions — from passive-aggressive presents to long-winded relatives — remain as tricky as they ever were before the pandemic. The solution? “Chew it before you do it.” In other words, chewing a piece of Extra gum can give that extra moment of pause, and transform a potentially awkward moment into a time of grace and connection. And who can argue with that?

Cheer

Of course, holiday ads for time immemorial have succeeded by tugging on the heartstrings, and a few notable campaigns from 2021 take that approach and run with it. Consider the McDonald’s U.K. ad that introduces us to a little girl and her imaginary monster friend, who bond over the Christmas ritual of leaving out bags of McDonald’s carrots as treats for Santa’s reindeer. Time passes (a cover of Cyndi Lauper’s “Time After Time” plays in the background – apparently 2021 is Cyndi Lauper’s year), and we think the girl has outgrown her joyful friend. But — spoiler alert! — you might need to pull your hanky out. Some friendships are meant for the long haul.

Finally, consider Apple’s spot, which was filmed with an iPhone 13 Pro by the father-and-son team of Ivan and Jason Reitman. The three-minute short follows the efforts of Olive, a little girl determined to keep her snowman buddy alive all year ‘round. An unexpected finale doesn’t quite cue up as expected, but the overall vibe — and a dedication to the ones we’ve waited all year to be with — goes for the feels in a big way, and succeeds.

Contact True Interactive

Looking to navigate the nuances of a complex world and connect with audiences via digital? Contact us. We can help.

Convenience Is King This Holiday Shopping Season

Convenience Is King This Holiday Shopping Season

Advertising

This is going to be a different holiday season. Many shoppers will be planning for holidays apart from their extended families and friends as they practice social distancing. And shopping itself will look different: consumers will likely be very careful about going into brick-and-mortar stores. As a result, shoppers will seek convenience. We’ve blogged about the importance of customer-friendly shipping in the past; this year, as consumers order gifts for shipping abroad to their socially distanced loved ones, convenient and cost-effective shipping will be more important than ever. Shoppers will also rely on services such as curbside pickup that make it easier to purchase gifts without needing to go into stores. It’s important that retailers adapt online holiday advertising strategies accordingly.

Rise of Convenience

Signs are everywhere that shoppers will place a heavy emphasis on convenience:

  • Retailers from Home Depot to Macy’s are downplaying Black Friday, focusing instead on spreading out holiday deals over a period time. This is a big shift: no longer will customers be expected to queue up in front of physical stores on retailers’ timetables. It’s simply not safe to do so.
  • Instead, retailers are stressing their ability to manage—and support—how people want to shop on their own terms. For example, Walmart has launched Walmart Plus, a new subscription service through which the retailer, among other things, manages delivery of purchases. For $98 a year, participating consumers receive in-store and online benefits like unlimited free delivery. The service, a direct competitor to Amazon Prime, demonstrates how retailers can pivot to meet customer needs during a year of radical change.
  • We also see retailers expanding their curbside pickup services, which makes it possible for shoppers to minimize in-store shopping while still getting what they want on their own timetable. As noted in eMarketer, curbside pickup is booming: “We now expect US click-and-collect ecommerce sales to grow to $58.52 billion, up 60.4% from our initial forecast of 38.6% growth.”

What Retailers Should Do

There are steps retailers can take to stay competitive during a holiday season shaped by an unprecedented year. What do we recommend?

  • First off, start now to advertise your holiday sales. Why? Because people are probably shopping earlier to accommodate more time to ship things. eMarketer recommends capturing accelerating holiday traffic by setting suitable budgets, not to mention competitive targets, for Smart Shopping campaigns and Smart Bidding.
  • But don’t just promote merchandise. Promote convenience; send the message that you are recognizing shoppers’ needs during an extraordinary year, and working hard to make life easier. For example, if you offer curbside pickup, use Google advertising tools to promote it: retailers can now indicate in their local inventory ads that curbside pickup is an option. And features like the local inventory ads curbside pickup badge, currently in beta, allow retailers to highlight contactless pickup available for products next day or even same day.
  • Capitalize on location-based advertising such as advertising on Google Maps. As we have blogged in the past, Google Maps advertising offers unique possibilities; why not use this tool to highlight your shipping and curbside service offerings?
  • Put video to work. Explain how your shipping and curbside services work via tight, thoughtful video segments. Per eMarketer, “Viewers are three times more likely to pay attention to online video ads than television ads, and 70 percent of viewers say they bought a brand after seeing it on YouTube.” YouTube’s value, in fact, can’t be overstated: the article goes on to detail that the video-sharing platform has a 97 percent audience reach. Internalize these tendencies and strengths, and capitalize on them by planning a video strategy that reaches more people, and inspires those people to come shop this holiday season.
  • Make sure you promote services such as shipping through Google search ads. As eMarketer notes, almost 75 percent of U.S. respondents who indicate they plan to shop this holiday state that they will shop online more than they have in past holiday seasons. And the time-honored joy of browsing for gifts? A similar percentage say they will indulge their browsing online rather than on-site. Meet these online browsers and shoppers where they are at, letting them know, in their online search results, what you are offering in terms of shipping.

Contact True Interactive

A year ago, no one could have predicted the ways 2020 would shape consumer need—or the imagination and agility that would be demanded of brands responding to that need. Let us help you create online holiday advertising strategies during a singular time. Contact us.

Three Ways Retailers Can Succeed during the 2020 Holiday Shopping Season

Three Ways Retailers Can Succeed during the 2020 Holiday Shopping Season

Retail

The 2020 holiday shopping season will be unlike any other as people plan amid the reality of social distancing. And yet in a few important ways, the season will reflect the direction that consumer shopping behavior has been headed already, especially with people putting digital at the center of their shopping experience. Here are three ways retailers can prepare:

1 Be Digital-First

A Google-commissioned Ipsos survey found that 74 percent of U.S. shoppers said they plan to do more online shopping than they did in previous seasons. These findings should surprise no retailer. The holiday shopping season has been going increasingly digital for years. According to Salesforce data, there was an 8 percent increase in digital spend overall for the 2019 season, with $723 billion in digital revenue worldwide. The difference in 2020: digital will dominate.

If more people are buying online, that means they’re spending more time online searching for things to buy. In the past, we’ve counseled retailers to aggressively embrace digital advertising tools to prepare for this shift in behavior (for more insight, see this post from 2018 and a sample post of mine from 2019). What’s different about this year is that online advertising where your audience is – such as on Amazon, Facebook, and Google  – is essential, not optional, especially as social distancing has created a surge in people spending more time on digital.

2 Level up Your Mobile Game

Consumers prefer digital, but they have not abandoned in-store shopping by any means. According to a new survey of more than 1,400 U.S. consumers by CodeBroker, 53 percent of shoppers intend to shop at physical locations. Among those who said they were not planning to shop at their favorite stores’ locations, 61 percent said they would change their mind if they received a high-value mobile/digital coupon for a product in which they were interested.

In addition, the Google/Ipsos research says that 53 percent of shoppers that plan to shop this season said they’ll choose to shop at stores that offer contactless shopping. And 47 percent of said they’ll use options to buy online, pickup in-store, or use curbside pickup.

These findings tells us that retailers that use mobile wisely to improve the brick-and-mortar shopping experience will win. Here again, this trend is not new. Holiday shopping has been going mobile for some time, and as we blogged in 2019, retailers that had already responded to the rise of mobile orders were already enjoying a distinct advantage over those that had not. What’s different about 2020 is that retailers need to prepare for a surge in curbside pick-up orders with consumers using their mobile phones to manage the process of ordering and picking up their purchases. Moreover, retailers can and should deploy advertising strategies that use mobile coupons where possible and appropriate.

3 Adapt to a Different Shopping Mindset

How shoppers feel about the holiday season will be radically different. Consider these realities:

  • Many shoppers will be planning for a holiday apart from their extended families as they practice social distancing. As shoppers inevitably order gifts for shipping abroad to their socially distanced loved ones, their moods will be affected.
  • Shoppers are already planning amid a threat of COVID-19 cases spiking again during the winter and possibly triggering state-by-state lockdowns. The ongoing news reports about COVID-19 are likely creating a sense of urgency among shoppers as they work around the possibility of their favorite stores closing. Moreover, shoppers are likely experiencing understandable anxiety and fear.

Retailers should respond by:

  • Activating holiday shopping campaigns now. If ever there was a year when shoppers are planning ahead and are receptive to holiday campaigns that promote services such shipping and curbside pickup, 2020 is that time.

In addition, be ready for a surge in queries from shoppers about details such as product order status as people shop with caution. The Google/Ipsos survey found that 67 percent of holiday shoppers will confirm online that an item is in stock before going to buy it. This means retailers should expect more customer queries everywhere you interact with customers, including email and your socials.

Contact True Interactive

To succeed this holiday season with online advertising, contract True Interactive. We have extensive experience helping businesses thrive with digital.

Photo by Nathan Lemon on Unsplash

3 Ways That Retailers Can Win During the 2019 Holiday Shopping Season

3 Ways That Retailers Can Win During the 2019 Holiday Shopping Season

Retail

The holidays are always in season for retailers. Even though holiday shopping traditionally does not begin until the week of Black Friday, advertisers need to constantly anticipate and respond to shifts in consumer behavior and any factors that affect how people shop during the holidays. Here are three ways retailers can succeed in the 2019 holiday shopping season, based on our experience:

1 Be Mobile

According to Adobe, the 2018 holiday season marked the first time that smart phones accounted for more than half of all visits to websites during the holidays. With 51 percent of shoppers using their phones to address shopping needs, retailers better have a strong mobile advertising presence.

To be mobile, brands need to first and foremost capitalize on tools that maximize the value of the mobile format. For example, Google Gallery Ads, available in beta, consist of swipeable images that display on multiple pages on a user’s mobile phones. Shoppers can swipe through the images or click one to expand the gallery into a vertical view that users can then swipe down. At the end of the gallery, a call to action to visit the advertiser’s site appears. A company such as ours that has access to Google can fast track you into using tools such as this one.

In addition, Google has launched tools that make it easier for brands to make your inventory sparkle, such as Google Showcase Shopping Ads. These types of tools are especially useful for making inventory more attractive (and literally shoppable) as people are using their mobile phones to browse for holiday ideas before the season officially kicks off.

Being mobile also means providing a great follow-through experience on your site, whether that site is accessed from a laptop, a PC—or from a smart phone. As I blogged last year, a number of businesses encountered turbulence because their online experience didn’t deliver well after shoppers clicked through on ads to buy things.

Be ready – across the entire mobile journey. (Note: check out this case study about our work with Snapfish for more insight into how we’ve helped a business succeed with mobile advertising.)

2 Prepare for Black Friday Week

Black Friday not just a day anymore. It’s a shopping state of mind.

Black Friday remains the single most important shopping event of the year. But winning retailers understand that Black Friday has become, in fact, an entire week. As the popularity of Cyber Monday shows—four hours on that day were, in 2018, the busiest period of the entire year. People are in Black Friday shopping mode hunting for deals during Thanksgiving Week and immediately afterwards. That shopping rush includes Thanksgiving Day, which incidentally shows buyers relying more on smart phones than they do on Cyber Monday or even Black Friday itself.

To maximize the opportunities afforded by an expanded Black Friday phenomenon, online retailers need to be ready with advertising strategies—paid search and display, for example—that attract customers to buy during the entire week.

3 Compete with Shipping

One of the major stories of the 2018 holiday season was the rise of shipping as a competitive tool: Amazon, Target, and Walmart all tried to outdo each other with attractive shipping offers. Amazon, for example, famously extended free shipping, with no minimum purchase required, for a limited time starting November 5.

Shipping will be a big story for the 2019 season, too. With Thanksgiving taking place later in November, the official holiday season will be shorter. And a shorter season usually means a sense of urgency, as consumers try to make up for lost time by having products shipped to them faster. While smaller retailers may have a harder time matching the efforts made by behemoths like Amazon, it’s important to stay competitive by having your act together and your shipping strategy sorted. Achieving more efficient product fulfillment and shipping may involve hiring more labor. It might also demand tweaks to your online advertising.

Contact True Interactive

Bottom line: brands want to stay abreast of the trends in order to maximize the holiday shopping experience they provide for customers. If you need help, contact us.

Image source: https://pixabay.com/photos/woman-shopping-lifestyle-beautiful-3040029/

Online Retailers Are Winning Big This Holiday Season

Online Retailers Are Winning Big This Holiday Season

Retail

We’re off to the races with the 2018 holiday season, and retailers are showing some strong results with online sales. Here’s what Adobe Analytics reported:

  • Cyber Monday hit $7.9 billion in sales, making it the largest online shopping day of all time in the United States — a 19.7 percent increase year-over-year.
  • Thanksgiving Day and Black Friday brought in $3.7 billion (28 percent growth year over year) and $6.2 billion (23.6 percent growth) in revenue.
  • Saturday and Sunday, November 24 and 25, set a new record as the biggest online shopping weekend in the U.S. ($6.4 billion) growing faster than Black Friday and Cyber Monday with more than 25 percent on each day.

Not every retailer is winning this holiday season. Only retailers that do these things are reaping rewards:

  • Focusing on mobile. As we have shared on our blog, technology giants such as Google have been launching tools that make it easier for businesses to showcase inventory with shoppable ads. That’s because shoppers are using mobile as a tool to buy, not just search for places to buy. PayPal, for instance, processed more than $1 billion in mobile payments on both Black Friday and Cyber Monday (a first for PayPal on either day). On Thanksgiving, mobile accounted for 54 percent of online sales, surpassing desktop for the first time, according to Salesforce.
  • Prepared their websites. According to Multibriefs, more people were hit with “out-of-stock” messages on websites than they were last year. “Even worse, some didn’t even make it to the company website,” wrote Multibriefs. “Lowes, Target and PayPal all experienced crashes on Cyber Monday.” The companies that failed to prepare for the online buying spike lost out to sites such as Amazon, which reported its biggest shopping day in history on Cyber Monday. Who says websites are dead? If you were ready as Amazon was, you won big.
  • Moving products quickly. Amazon long ago set the standard for speedy product delivery. But many retailers such as Best Buy are catching up. This holiday season retailers are using free shipping and convenient returns as a proving ground, as this news report discusses. Last month, I predicted shipping would provide an edge to retailers this holiday season — but this prediction applies only to those who have figured out how to fulfill the uptick in demand that online ordering brings. Walmart struggled to fulfill online orders during the 2017 holiday season – let’s see how the retailer does when the dust settles on 2018.

If you took steps to prepare yourself for the onslaught of online holiday shopping – especially by attracting mobile shoppers with a strong investment into online advertising and digital commerce – the 2018 holiday season is looking very bright. For more insight into how to win with mobile shoppers, contact True Interactive. We’re here to help.

Image source: https://pixabay.com/en/holiday-shopping-smartphone-phone-1921658/

The Key to a Successful Holiday Season: Shipping

The Key to a Successful Holiday Season: Shipping

Retail

Black Friday and Cyber Monday deals are just table stakes for retailers to compete in the first-ever $1 trillion holiday shopping season. The real competitive advantage is coming from shipping.

Based on the client work I do, I’ve always known that favorable shipping can help a retailer compete more effectively during the holiday shopping season. Low-cost, rapid shipping caters to the needs of today’s on-demand consumer who want products curated and sent to them and oftentimes at the last minute.

But what’s changed dramatically about the 2018 season is the Amazon effect. Earlier in November, Amazon announced free shipping with no minimum purchase required from November 5 onward. Amazon did not announce a cut-off date, but it will probably be December 22. Now, this change to its shipping policy is huge. Amazon accomplishes two objectives with free shipping during the holidays:

  • Beating Target and Walmart. These two retail giants had announced more liberal shipping and returns policies of their own in October. Walmart had announced it would expand two-day shipping to the entire Walmart marketplace beginning November 1. And Walmart also said that products purchased through its marketplace could be returned Walmart brick-and-mortar stores products purchased through its marketplace. Target had announced free two-day shipping with no minimum purchase or REDcard membership required from November 1-December 22. Amazon trumped both.
  • Luring shoppers to Amazon Prime. Amazon hopes that anyone using free shipping during the holidays will get a taste of what Prime members enjoy all the time – and, presumably, sign up for Prime, where many more benefits await. For example, Prime members get free same-day delivery on millions of items and free two-day shipping on many more. Prime is the center of Amazon’s on-demand world, which encompasses services ranging from entertainment to retail.

Smaller retailers have a harder time competing on those kinds of terms, but try they must. If you’re a brick-and-mortar retailer, advertising on-demand services such as delivery, shipping, and online ordering/in-store pick-up is key to winning this holiday season. It’s important that you manage your online advertising, including your paid search and display, to show how well you service the on-demand shopper. If you need help, contact True Interactive.

Image source: Walmart