The 2024 holiday season is shaping up to be a game-changer for retailers, with record-breaking sales and shifting shopper behaviors redefining the landscape.
While Black Friday and Cyber Monday saw historic performance, December holds the potential to be the real crown jewel of the season.
From surging online sales to the growing importance of omni-channel strategies, here’s everything you need to know to maximize your holiday success this year—and set the stage for a strong start in 2025.
Black Friday and Cyber Monday: By the Numbers
This year’s Black Friday and Cyber Monday sales delivered record highs, but with some notable shifts in how consumers are shopping:
Black Friday Highlights:
– Total retail sales (excluding auto) increased by +3.4% year-over-year (YoY), with online sales surging +14.6% YoY.
– In-store traffic dipped by -8.2% as more shoppers opted to buy online.
– Shoppers who did visit stores spent less per trip than their online counterparts, with digital carts proving more than twice as large as in-store carts.
Cyber Monday Success:
– Total retail sales rose +2.1% YoY, with online sales growing +8.3% YoY.
– Apparel led the charge with +10.9% YoY online growth, followed by electronics (+5.9%) and jewelry (+4.9%).
– Mobile devices accounted for 55% of online sales, driving $5.9 billion in spending (+12% YoY).
Key Trends:
– Discounts Exceeded Expectations: Toys were discounted by an average of 27.8%, electronics by 27.4%, and apparel by 22.2%.
– Deals Drive Action: Shoppers are motivated by deals, with 52% seeking promotions and 42% buying fewer gifts due to rising prices.
December: The Heart of Holiday Sales
Despite fewer shopping days in December this year, the month remains the most critical period for holiday retail. Here’s what the data tells us:
– Delayed Shopping: Only 38.7% of holiday shopping was completed by the end of November, compared to 44.4% in 2023, meaning more shoppers are buying in December.
– High Daily Sales: December 12-24 is set to rival Black Friday and Cyber Monday, with $22 billion spent per day on average during the final 12 days before Christmas.
– Super Saturday Surge: Falling on December 21 this year, Super Saturday will kick off a five-day surge in spending, expected to rival Cyber Monday’s totals.
Opportunities for December Retailers:
– Search Traffic: Terms like “gift ideas” and “gifts for” are expected to peak in the next two weeks.
– Video Engagement: Holiday shopping content views will spike, especially on platforms like YouTube.
– Omni-Channel Strategies: Shoppers are leveraging both online and in-store options, with a growing preference for apps.
The Shift to First-Party Data and AI-Driven Insights
Retailers are adapting to a post-cookie world by embracing first-party data and AI-driven tools:
– First-Party Data Advantages: Tools like AdBeacon provide privacy-compliant tracking of visits, clicks, and purchases, allowing for accurate journey mapping and better decision-making.
– AI Impact: Retailers using AI saw a 9% higher conversion rate, and AI-driven solutions contributed over $14 billion in global online sales on Black Friday alone.
Actionable Steps to Win December:
Maximize Deals Coverage:
– Ensure “deals”-related keywords are fully funded in search campaigns.
– Use promotion annotations in ads to highlight compelling discounts.
Capitalize on Omni-Channel Potential:
– Increase budgets for local inventory ads (LIAs) to drive in-store visits.
– Use Store Visit Values for hybrid campaigns to capture local and online demand.
Leverage Mobile and Apps:
– Mobile drove 55% of Black Friday online sales, making it essential to optimize app and mobile campaigns.
– Top-performing shopping apps include Etsy, Sam’s Club, and Affirm.
Utilize Video Marketing:
– Run YouTube Masthead campaigns on peak shopping days.
– Expand reach with Demand Gen campaigns targeting lookalike audiences.
Monitor Product Quality:
– Keep a close eye on Merchant Center warnings and stock availability.
– Leverage competitive pricing insights to stay ahead.
Key Holiday Categories Driving Sales
The hottest categories this year reflect a mix of necessity and indulgence:
– Apparel: +14.5% YoY growth in online sales.
– Electronics and Computers: +6.9%.
– Jewelry: +8.2%.
– Cold Weather Gear: Outerwear (+20%), car batteries (+25%), and winter sports apparel (+27%).
Final Thoughts: The Real Countdown is On
The holiday season is not over yet! With 20% of Q4 holiday sales happening in the last two weeks before Christmas, there’s still time to make an impact. Retailers who adapt quickly—leveraging first-party data, omni-channel strategies, and targeted campaigns—will capture the remaining demand and set themselves up for a strong start in 2025.
Ready to crush December? Let’s make it happen!