As the holiday season approaches, brands and retailers are strategizing to enhance their sales channels and marketing approaches. Recent research from Digiday+ reveals that while e-commerce remains a vital avenue for holiday sales, its dominance is being challenged by the rising significance of social commerce and traditional retail.
Shifting Sales Channels
According to a survey conducted by Digiday+, which included insights from 71 professionals across brands, retailers, and agencies, there is a slight decline in the reliance on e-commerce. This year, 78% of respondents reported using their own e-commerce platforms for holiday sales, down from 85% in the previous year. Despite this decrease, e-commerce still leads as the most utilized channel during the holiday shopping season.
In contrast, brands are planning to increase their investments in social commerce, with usage set to rise from 61% last year to 71% this year. This shift reflects a changing consumer landscape, particularly among Gen Z and millennials, who increasingly turn to social media for product discovery. A report from Basis Technologies and GWI underscores this trend, indicating that 42% of Gen Z consumers intend to purchase holiday gifts directly through social media platforms.
Furthermore, the survey showed a modest uptick in the planned use of Amazon and other retailers. While 46% of brands intend to leverage Amazon, up from 44% last year, the interest in alternative retail channels increased slightly from 48% to 49%.
The Influence of Amazon
The competitive landscape, particularly with Amazon’s extensive reach, poses challenges for brands aiming to capture consumer attention. Amazon’s retail media network and its streaming platform, Prime Video, have enhanced its appeal as a partner for brands looking to advertise effectively during the holidays. Amazon’s initiatives, such as offering targeted advertising opportunities using first-party data, are likely to attract more advertisers seeking to maximize their holiday campaigns.
Emphasizing Gift Guides and Influencer Content
Digiday’s survey indicates that brands are pivoting towards innovative marketing tactics, such as gift guides and influencer-led haul and unboxing videos. Over half (56%) of the professionals surveyed plan to employ gift guides, while 50% will focus on influencer-driven content. These approaches aim to inspire and engage consumers during a critical shopping period, as many shoppers actively seek gift ideas.
Research from Bazaarvoice highlights the importance of consumer reviews, with 40% of holiday shoppers planning to check both positive and negative reviews before making purchases. This reinforces the value of influencer marketing, which has proven effective for brands like Afterpay and Cash App. Alison Meyer, head of commerce marketing at Afterpay, noted that collaborating with influencers to create organic content has yielded significant engagement and brand awareness.
Retailer Tanger also recognizes the impact of influencer content, particularly with younger audiences who enjoy sharing their shopping experiences on platforms like TikTok. Tanger’s CEO, Stephen Yalof, explained that showcasing live shopping experiences and unboxing hauls resonates strongly with their consumer base.
The Evolving Role of Direct Mail and Traditional Marketing
Interestingly, traditional marketing methods like physical catalogs and direct mail are experiencing a resurgence. Despite only 19% of respondents indicating that these tactics performed well historically, this is a notable increase from previous years, signaling a renewed interest in leveraging direct mail campaigns. Brands like Bespoke Post have found success in sending holiday catalogs, aligning their timing carefully to maximize response rates.
Alvaro De La Rocha, CMO at Bespoke Post, emphasized the potential of direct mail to stand out in a saturated digital landscape. By testing traditional channels amidst reduced demand, brands can leverage attractive pricing to experiment with these approaches effectively.
Conclusion
As brands prepare for the holiday season, the competition in the e-commerce landscape is intensifying. While e-commerce remains a key player, the growth of social commerce and the resurgence of traditional marketing tactics highlight the need for brands to adapt and diversify their strategies. By emphasizing influencer content and gift guides, brands aim to connect with consumers in meaningful ways, ultimately driving engagement and sales during this crucial shopping period.
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