The holiday season is just around the corner, and retailers and marketers are gearing up for the busiest shopping period of the year. It’s crucial to understand how consumer behavior is evolving and what emerging trends to expect. Experian’s 2023 Holiday spending trends and insights report analyzes recent trends, consumer spending habits, and anticipates what’s to come in 2023 to help you deliver a top-notch shopping experience this holiday season.
In this blog post, we’ll cover three key insights from our report.
1. Consumers are shopping earlier
It’s no secret that December has always been the go-to month for consumers when it comes to holiday spending. However, holiday shopping now starts earlier, particularly with online sales.
This can be attributed to a surge in promotions and deals, enticing shoppers to open their wallets ahead of time, giving a significant boost to holiday sales. Notably, Cyber Week sales have proven to be an influential factor, accounting for 8% of total consumer holiday spending.
Experian tip
Reach the right shoppers with your promotions with sell-side targeting. This powerful approach gives you control over where your ads are placed while ensuring maximum visibility through direct connections with publishers. Whether on mobile, web, or CTV, this seamless ad experience will engage your audience effectively.
2. Online sales are on the rise
The popularity of online holiday sales is continuously growing, surpassing in-store shopping. There has been a consistent 1% year-over-year increase in online sales, while in-store sales have seen a 1% decrease.
“It’s easier for consumers to comparison shop for large ticket items online that they might find at a mass retailer or office supply store. Consumers prefer to have larger, bulkier items shipped directly to their home for minimal cost. By shopping online, consumers can save time since they don’t need to wait in checkout lines.”
Anna Liparoto, Sr. Account Executive, Retail & CPG
Although online sales currently make up only one-third of all holiday shopping, there is immense potential for further expansion. Mass retailers and office, electronics, and games industries particularly excel in online holiday sales. While in-store purchases remain the primary choice for holiday shoppers, consumer online and offline activities intersect before the final purchase.
Experian tip
Take advantage of the surge in online shopping by diversifying your marketing channels. An agnostic identity graph can bring together device and media data, capturing valuable user insights. By gaining a holistic view of your target audience, you’ll be able to optimize your ad spend and allocate resources effectively, ultimately boosting your return on investment.
“Omnichannel targeting during the upcoming holiday season will continue to prove to be the best way to reach scale and maximize ROI across all marketing channels.”
Joe LigÉ, Head of Enterprise Demand Partnerships
3. 2023 holiday spending will be on par with 2022
During the holiday season in 2022, consumer spending showed an anticipated increase, although the growth rate was slightly lower compared to previous years. October saw a surge in average consumer spending, indicating a swift response to early discounts and promotions offered by retailers.
As the holiday season progressed, holiday spending gradually slowed down and reached a level similar to that of the previous year. Overall, there was a modest 2% growth. Looking into the future, if economic conditions remain stable in the second half of 2023, we can expect holiday spending to align with the figures from last year.
Experian tip
To truly maximize impact, consider data enrichment. By diving deeper into your target audience’s preferences and behaviors, you can better tailor your strategies and seamlessly integrate the enriched data across various channels. This allows you to unlock the true potential of your ad inventory, creating more meaningful connections with your audience.
Download our 2024 report
Get ready for the holiday shopping season with Experian’s 2024 Holiday spending trends and insights report. Inside you’ll find:
- Analysis of past trends and what they mean for 2024
- Exclusive predictions for the upcoming holiday season
- The top audiences to activate this holiday season
To access to all of our predictions for this year’s holiday shopping season, download our 2024 Holiday spending trends and insights report today.
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Discover Experian’s 19 new holiday shopping audiences designed for you to reach the most relevant shoppers this holiday season.
In our Ask the Expert Series, we interview leaders from our partner organizations who are helping to lead their brands to new heights in ad tech. Today’s interview is with Jordan Feivelson, VP, Digital Audiences at Webbula. Jordan is a 22-year advertising industry veteran who has worked for media properties such as WebMD and Disney. Over the past ten years, he has transitioned to the data and programmatic space, including growing the data business for Kantar Shopcom and Adstra. What types of advertisers might benefit from utilizing Webbula audiences across various verticals? Can you provide examples of how different industries successfully leverage your data to achieve specific campaign goals? Most advertisers can leverage Webbula’s award-winning attributes for their activation initiatives. Webbula offers approximately 3,000 syndicated segments covering categories such as Demographics, Automotive, Political, Mortgage, B2B, Hobby/Interest/Lifestyle, and Interests & Brand Preferences (brand name targeting). Audience insights and marketing strategies What specific types of audience segments does Webbula provide? How can advertisers leverage these segments to craft more effective, personalized marketing strategies? Webbula has incredible depth and breadth within its verticals, giving marketers the tools to deliver targeted messaging effectively. Our Demographic, B2B, Mortgage, Automotive, and Interest and Brand Preferences segments each contain 500-1,000 segments, all built on deterministic, self-reported, and individually linked data. We ensure the best accuracy with multiple deterministic data points tied to the real world (ex., first name, last name, postal address, and email address). Some examples of our unique syndicated audience types: B2B: A view of the latest industry trends with detailed cuts of the professional world, such as companies with and not within the Fortune 500 companies and job positions that are directors and below. This also includes custom capabilities, including ABM (list of target companies in an activation campaign or by industry code (ex. NAICS, SIC). Interest and Brand Preferences: Consumers who have shown interest and affinity to hundreds of brands (ex., Nike), genres (ex., comedy, hip hop), sports teams, and more. Mortgage: A detailed view of homebuyers’ purchase range, loan type (ex. jumbo loan, standard loan), mortgage amount, interest rate, and more. With Webbula’s audience data, brands can create a comprehensive picture of their audiences down to the individual level and reach them accurately. Data quality, sourcing, and differentiation How is consumer data sourced and curated at Webbula? Are there data quality standards that Webbula establishes for consumer data, and how do you ensure your sources and methods meet these standards consistently? Webbula’s data is aggregated from over 110 trusted and authenticated sources, including publishers, data partners, social media, and more. The data collected comes directly from consumers who self-report information through surveys and other methods. We apply our hygiene filters to mitigate fraud and accurately score the data. Data Collection: The data collected comes directly from consumers who self-report information through surveys, questionnaires, transactions, and sign-ups. This ensures that brands display ads to audiences based on self-identified, cross-channel behaviors, not modeled assumptions. Hygiene Solutions: Webbula applies multi-method hygiene solutions to mitigate fraud and accurately score the data before onboarding, ensuring that all data meets the highest quality standards. Examples of Data Sources: Questionnaires: Self-reported data through surveys, offer submissions, and telemarketing. Transactions: Deterministic data from aftermarket parts, online purchases or services, and more. Sign-ups: Individually linked data from information entered through sweepstakes, infomercials, newsletters, and forms. What differentiates Webbula's data from other data providers in the market? Can you explain the unique value proposition that Webbula offers in terms of data depth and breadth? Due to our extensive experience in data cleansing, we provide the most accurate data within the programmatic ecosystem. TruthSet, the leading programmatic accuracy measurement company, has ranked Webbula as having the highest number of top attributes compared to other data providers with 150M+ HEMs. Additionally, Publicis Groupe and Neutronian further validate Webbula's data quality, underscoring its position as a leader in the industry. Webbula's data stands out in the market due to its unmatched accuracy and quality, achieved through years of expertise in data cleansing. Unlike other providers, Webbula’s foundation lies in its robust email hygiene process, ensuring that all data entering the programmatic ecosystem is thoroughly cleansed. Privacy, compliance, and future-proofing What measures does Webbula take to maintain data privacy and compliance? How do these efforts benefit advertisers in an evolving regulatory landscape and ensure ethical standards? Webbula was created over a decade ago with a future-proof, privacy-compliant foundation. We understand the industry’s rapid changes, including government and state legislation and cookie depreciation. Our goal has always been to build long-term partnerships and ensure we are prepared for industry changes. We rely on validated offline data sources, making us resilient to external influences. Success stories Can you share success stories where advertisers saw significant campaign improvements using Webbula’s data? What were the key factors that contributed to these successes? Our success is measured by client feedback and increased client spend. Webbula has helped several key advertisers achieve six-figure monthly thresholds by providing the most accurate data to meet campaign KPIs. Clients consistently return to use our data, validating our belief that “the proof is in the pudding.” Thanks for the interview. Any recommendations for our readers if they want to learn more? For those interested in learning more about Webbula, reach out for a personalized consultation. Contact us Latest posts
Experian’s 2024 Holiday spending trends and insights report covers consumer spending trends for the holiday season.