This year’s holidays season is the first since 2020 that’s relatively normal. As such, consumers are entering their “revenge living” era. However, this comes with the looming threat of a financial slowdown in 2023, so what does this mean for brands?

• Many are willing to shop, but are likely to buy fewer gifts
  • Average number of gifts given per consumer is expected to drop from 16 in 2021 to 9 in 2022
  • Spend on experiences, (i.e., concert tickets, restaurants) is expected to increase 7%.
• 7% decrease expected from higher-income shoppers ($100,000 + annual income).
• 25 % expected increase in lower earners (-$50,000 per year)

While the world is going back to “normal” it is still important to focus on the everyday life instead of the flashier holiday campaigns of before. “While ’tis the season, marketers are mindful that many people are struggling to make ends meet and are fighting the impact of inflation.” In preparation for the holiday season, 32% of marketers have plans to increase their promotional efforts, up from 13% last year. Marketing channels will also shift:

• Paid search remains king
• Affiliates and partnership are predicted to be second – beating out paid social for the first time
• 60% of Gen Z plan to use social media for their holiday shopping
• Newer brands are taking to the metaverse to attract the younger crowd
• Expecting a drop in linear TV and increase in CCTV and other streaming channels

Intentional messaging will play a crucial part in this year’s marketing campaigns

• 39% of consumers report they will be purchasing sustainable gifts whenever possible
• 41% say they prefer shopping at stores that promote sustainable practices
• Brands have also looked to cater to experience-driven consumers with marketing centered on diverse cultural traditions
  • 75% of multicultural shoppers report they want more retail advertising to be created with them in mind
  • 50% say they feel it is important for holiday advertising to include elements of their respective cultures

Source: https://www.marketingdive.com/news/brands-holiday-marketing-retail-strategy-social-media/636321/