It may only be August, but for most companies, the holiday season is quickly approaching. The holidays bring tons of consumers to stores looking to find the perfect presents for their loved ones. Did you know that the holiday season is responsible for about 30% of a retailer’s sales for the year? No wonder the holidays are important for brands who want to impact the retail decisions of their audience. This particular holiday season is going to look a lot different than the past. While juggling safety measures amid the pandemic, companies are looking to change their marketing strategies with many turning to OOH (out-of-home) advertising. This article will take a look at the consumer trends around holiday shopping and how OOH can help elevate any holiday season marketing campaign.
Retail Experiences an Increase in Sales During the Holidays
During the holidays, retail sales go up. Firstly, income growth is expected near the end of the year. In 2019, income in the United States rose 0.5% after October and employers added 266,000 jobs to the market. When consumers’ disposable income increases and more people have jobs, spending also increases. Secondly, most consumers are actively searching for presents during the holiday season. Regardless of religious beliefs, most people take part in friendly gift exchanges or simply decide to give back during this season. In the United States, households spend an average of $1,536 during the holidays, not to mention, in the past two years, holiday sales have surpassed $1 trillion.
There is no doubt that sales increase during the festive months of the year. For brands, this means that they must follow trends and market their products effectively to impact the retail decisions of their audience.
Consumer Trends During the Holidays
Consumer trends vary during the holidays when compared to the rest of the year. The following are two key factors brands should consider when marketing to their target audience.
More Consumers Are Turning to Online Channels
More than half of consumers (62%) were planning to shop both online and in stores during the 2019 holiday season. Given the world’s current situation, more consumers are predicted to shop online during this holiday season. It is key that brands prioritize their e-commerce platforms for a convenient consumer experience online. Out-of-home can help expand a company’s digital presence. When OOH and mobile ads are used together, these channels create very successful campaigns. Past campaign results show that mobile click-through rates increase by up to 15% when supported by OOH. In addition, OOH campaigns create a 38% uplift in short-term brand recognition via mobile and 66% of all actions (e.g online website visits, in store visits) are directed to the brand itself.
Consumers Start their Holiday Shopping Earlier
Approximately 14% of shoppers purchase their holiday presents before October and most of the shopping is done before December. Retailers should be focusing on launching promotional campaigns even earlier than previous years. Advertising your brand and product in the early fall will increase your exposure and give you a leg up against your competitors in getting on the minds of holiday shoppers. OOH media is easy to display almost anywhere. From truck-side billboards to grocery kiosks, bus shelter signs to mall displays, the options are infinite. Although there is a lot of uncertainty due to the global pandemic, using OOH mediums make it easy to update and change strategies.
What OOH can do for YOUR brand this holiday season
OOH media is a very effective advertising tool to reach a large audience. Especially with the new challenges brands will face when advertising in a global pandemic, OOH can ensure that important campaign messages are seen. Although OOH is one of the oldest forms of advertising, it has grown and changed with the times, now incorporating digital media and artificial intelligence, improving the effectiveness of the medium.
Furthermore, OOH media is cost-effective, especially when comparing cost per impression across other media types (e.g online, radio, TV). OOH is also able to reach a larger audience, as a study from Nielsen noted that almost 80% of people notice OOH advertising on a weekly basis. Although this holiday season may look different than those of the past, people are still getting out of their homes and seeing OOH ads. Whether it be driving to the local grocery store and seeing truck-side ads, or pumping gas and reading the ads at the gas station. This year especially, we’re expecting to see more consumers shop online and OOH is equipped to drive online conversions. Studies show that consumers are more likely to click on an online ad if they’ve seen an OOH ad from the same brand before. As we swiftly approach the holidays, it is evident that OOH mediums can help your brand deliver a bold message this upcoming season.
As the holiday season quickly approaches, now is the perfect time to start planning how you will market your brand this winter. It is important for brands to recognize the two main trends that will be prevalent during this holiday season. Firstly, more consumers will be turning to e-commerce instead of shopping in stores and secondly, consumers are beginning to get their holiday shopping done earlier. Companies should be incorporating OOH into their winter advertising campaigns, as it is low-cost, adaptable and even drives online conversions. Now the only question that remains is, why wouldn’t you use OOH advertising this holiday season?