11 Holiday Retail Trends and Strategies for Digital Marketers

As we approach the holiday season, digital marketers find themselves at the exciting intersection of technological innovation, evolving consumer behaviors and economic considerations. This comprehensive guide delves into the top holiday trends shaping the current retail landscape and provides actionable strategies for digital marketers to succeed in this dynamic environment.

1. The Early Bird Gets the Customer

Gone are the days when Black Friday marked the official start of the holiday shopping season. Today's savvy consumers are getting a head start on their gift hunting. According to CivicScience, a whopping 50% of U.S. holiday shoppers plan to begin their search before Thanksgiving this year — a notable 6% increase from 2023. Consumers don’t see Black Friday and Cyber Monday as essential to their needs. Many aim to complete their shopping quickly and shop early to avoid potential shipping delays.

What Digital Marketers Can Do Now

• Implement a staggered promotion strategy to capture both early birds and last-minute shoppers.

• Create a content calendar that builds anticipation throughout the extended season.

• Launch "pre-season" campaigns as early as October to engage early shoppers.

• Offer early-bird specials and exclusive deals for loyal customers to incentivize early purchases.

2. Mobile Is a Shopper's Constant Companion

The smartphone has become an indispensable tool for holiday shoppers, with eMarketer forecasting a 13.4% increase in retail m-commerce holiday season sales this year. A growing number of consumers are expected to shop through apps and make purchases through social media.

What Digital Marketers Can Do Now

• Ensure your entire digital presence is mobile-optimized, including one-click purchasing and mobile-specific promotions.

• Invest in video advertising on platforms such as YouTube, TikTok and Instagram, where consumers spend significant time on mobile devices.

• Implement QR codes in physical advertising to drive mobile engagement and bridge the gap between offline and online experiences.

• Invest in app development or enhancement to capture the growing app-based shopping segment.

• Create mobile-exclusive deals to incentivize app downloads and usage, fostering customer loyalty.
  

3. Social Commerce Is Where Gen Z Shops

Generation Z is spearheading the social commerce revolution. These shoppers are much more likely to purchase holiday gifts through social platforms compared to other generations. Those buying gifts on social media favor Facebook and Instagram as the channels of choice. According to Sprout Social, Facebook is the most popular social commerce platform with 64.6 million social commerce buyers expected this year, followed by 46.8 million buyers on Instagram and 35.5 million on TikTok.

What Digital Marketers Can Do Now

• Increase your presence and activity on social media platforms, especially Instagram and Facebook, with a mix of paid ads and organic content.

• Develop platform-specific content strategies to maximize engagement on each social channel.

• Create shoppable posts and leverage in-app purchasing features to streamline the buying process.

• Collaborate with influencers for authentic product promotions, particularly targeting Gen Z audiences.
  

4. Value Messaging Is Important in Uncertain Times

Consumer unease about the economy continues influencing shopping behaviors and holiday marketing strategies. Shoppers are becoming more strategic about their purchases, often trading down on some items while splurging on others.

What Digital Marketers Can Do Now

• Emphasize value, deals and discounts in messaging to appeal to budget-conscious consumers.

• Highlight value-driven offerings and budget-friendly options like product sample sizes.

• Create bundle deals to increase perceived value and encourage larger purchases.

• Implement tiered offerings to cater to different budget levels and maximize customer reach.

• Offer flexible payment options like "buy now, pay later" (BNPL) to ease financial concerns.

• Highlight cost-saving features such as energy efficiency or long-term durability to justify higher price points.

5. Consumer Expectations Are Getting More Sophisticated

As consumers seek convenience, selection and competitive pricing, e-commerce is poised for further growth. The ease of comparison shopping online is a significant driver of this trend, and retailers must meet shoppers' high expectations no matter how they shop.

What Digital Marketers Can Do Now

• Optimize websites for both desktop and mobile devices, ensuring a seamless user experience across all platforms.

• Implement AI-powered recommendation engines to personalize the customer journey and increase average order value.

• Offer comprehensive product information and comparison tools including features like virtual try-ons for applicable products.

• Provide price-matching guarantees to instill buyers' confidence and discourage comparison shopping on competitors' sites.

• Streamline the checkout process to reduce cart abandonment rates and improve conversion.

6. The Amazon Effect Is Driving Retail Media

Amazon's dominance continues, commanding over 40% of U.S. e-commerce sales. Simultaneously, retail media networks are reshaping advertising strategies:

• eMarketer predicts U.S. omnichannel retail media ad spend will reach over $54 billion by the end of this year, up from $36.2 billion.

• Early forecasts suggest retail media spend could exceed $100 billion by 2027.
  

What Digital Marketers Can Do Now

• Allocate a portion of your ad budget to retail media networks (RMNs) to capitalize on this growing trend.

• Leverage rich first-party data in combination with retail media insights for hypertargeted campaigns.

• Optimize product listings and advertising on Amazon's platform, given its significant market share, as well as on other relevant RMNs.

• Explore partnerships with emerging RMNs to diversify your reach and tap into niche markets.
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7. Omnichannel Experiences Require a Personal Touch

Personalization has become a crucial factor in consumer satisfaction, with McKinsey reporting that 71% of consumers expect personalized interactions and 76% express frustration when they don't receive them.  

What Digital Marketers Can Do Now

• Leverage AI and machine learning to create dynamic, adaptive shopping experiences that cater to individual preferences.

• Use data to tailor messaging, product recommendations and pricing to each customer's unique profile.

• Implement an omnichannel strategy for a consistent experience across all platforms, from social media to in-store interactions.

• Use dynamic content optimization (DCO) in advertising for real-time, contextually relevant content that resonates with each viewer.
  

8. First-Party Data Can Give Brands an Edge

First-party data has become more valuable than ever for creating targeted, effective marketing campaigns in an era of increasing privacy concerns and regulations. Beyond basic contact information, it encompasses a wealth of behavioral signals such as clicks, page views, search history and reasons for churn. These data points offer marketers a comprehensive view of consumer engagement levels, product interests and critical moments in the customer journey where conversion is most likely – or where cart abandonment might occur. Leveraging this information, marketers can reach the right audience and guide people more effectively through the shopping journey.

What Digital Marketers Can Do Now

• Optimize your website for data intake, ensuring effective systems for standardizing, organizing and storing customer information.

• Leverage loyalty programs, newsletters and opt-in programs to collect customer data ethically and build stronger relationships.

• Use customer relationship management (CRM) or customer data platform (CDP) systems to create targetable audiences and personalize marketing efforts.

• Implement AI-driven personalization and content generation tools – a technology 72% of U.S. digital retailers believe will significantly impact their businesses.
  

9. Email Marketing Offers More Personalization

Despite the rise of new channels, email endures as a crucial tool for personalized marketing, offering unparalleled opportunities for targeted communication. It’s inexpensive and measurable, and because you own your email list, you can keep in touch with your contacts on your own terms without being at the mercy of social media algorithm changes.  

What Digital Marketers Can Do Now

• Segment your email list based on customer behavior, preferences and purchase history to deliver highly relevant content.

• Use dynamic content blocks to personalize email content for each recipient, increasing engagement and conversion rates.

• Implement triggered emails based on specific customer actions or milestones to deliver timely, relevant messages.

• A/B test subject lines, content and send times to optimize engagement and continually refine your email strategy.

10. Consumers Want Sustainability

According to the PwC 2024 Voice of the Consumer survey, some consumers say they would pay 9.7% more on average for sustainable or sustainably sourced goods, even with today's inflation and high cost of living. This willingness to pay a premium highlights the growing importance of sustainability in consumer decision-making. In fact, 46% of consumers purchase products on social media, suggesting a strong link between digital engagement and buying behavior. This trend indicates that brands showcasing their sustainability efforts on social platforms may have a competitive edge. The combination of sustainability preferences and social media purchasing habits points to a shift in consumer values, where ethical considerations increasingly influence buying decisions across channels.

What Digital Marketers Can Do Now

• Highlight your brand's sustainability efforts in holiday marketing campaigns to appeal to environmentally conscious consumers.

• Create a special "green" product line or limited-edition eco-friendly holiday offerings to capitalize on this growing trend.

• Partner with environmental organizations for cause-related marketing campaigns, aligning your brand with important social issues.

• Use sustainable packaging and highlight this in your product messaging to differentiate your offerings.
  

11. Influencers Are Making a Splash

Influencer marketing continues to be a powerful tool for authentically reaching consumers. Influencer Marketing Hub’s State of Influencer Marketing Benchmark Report projects it will be $24 billion by the end of this year. The Digital Marketing Institute reports businesses make $5.78 (some up to $18!) for every $1 spent on influencer marketing, demonstrating its potential ROI.

What Digital Marketers Can Do Now

• Build long-term relationships with influencers who align with your brand values to create authentic, trusted content.

• Use a mix of mega-, macro-, micro- and nano-influencers as your budget allows to reach diverse audience segments and maximize impact across different demographics.

• Focus on user-generated content and customer reviews in your marketing efforts to leverage the power of social proof.

• Implement referral programs to capitalize on the influence of friend and family recommendations.

• Tailor your advertising approach based on generational preferences, focusing on social for younger audiences and more traditional channels for older ones.

• Encourage influencers to create gift guides featuring your products, providing valuable content for their followers while showcasing your offerings.
  

Bonus Digital Marketing Strategies To Make the Most of the Holidays

With fewer shopping days between Thanksgiving and Christmas, digital marketers must maximize every opportunity to engage consumers and drive sales. Here are some final strategies to consider:

• Leverage BOPIS options, which Salesforce expects to drive 33% of global online orders the week before Christmas, catering to last-minute shoppers.

• Create urgency with limited-time offers and countdown timers to encourage quick decision-making.

• Extend shipping deadlines and highlight last-minute gift options to capture late shoppers.

• Focus on creating campaigns that resonate emotionally with consumers and spread holiday cheer throughout the season.

Success this holiday shopping season hinges on digital marketers being agile, innovative, and customer-centric. GRADIANT, Goodway Group’s modern-funnel agency division, can help you leverage cutting-edge technology and data-driven insights to create compelling campaigns that drive sales while fostering lasting customer relationships. As you fine-tune your approach, remember to balance efficiency and sales with creating meaningful consumer connections during this special time of year.

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About the Authors: 

Emily Gray is a strategic research analyst at Goodway Group. She got her start in the advertising and marketing world in client services, where she spent a good amount of time managing deliverables, timelines and client requests. Emily fell in love with strategy and planning when, as an account manager, she had the opportunity to work on Funko, Blue Diamond Almonds and PATH. After a few years away from the industry, where she managed a rock band and worked at a Dallas PR firm, Emily is back in the strategy and research world at Goodway Group. She focuses on the B2B vertical and covers the tech, finance and telecom spaces. 

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Juli Pettijohn is a seasoned advertising expert who has seamlessly transitioned through various roles within the advertising industry, ranging from editor to writer to project manager. At Goodway Group, Juli collaborates with both internal and external teams to craft engaging case studies, webpages, proposals, press releases, presentations, award submissions, blog posts and more content aimed at enlightening audiences on ad tech matters, elevating our brand presence and highlighting client successes. Her extensive writing portfolio spans diverse topics such as retail media, connected TV, intent data and our cookieless future.