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BizReport : Ecommerce archives : October 07, 2016

Reports: Holiday spending to increase 3%, social key

According to the National Retail Federation, holiday spending will increase just over 3% this year, to land at $655.8 billion. On average, holiday spending has increased just over 2% for each of the past ten years. .

by Kristina Knight

And, while spending is up, look for social to play a larger part in retailers' holiday ad plans. That's the word from new Kenshoo and OrionCKB data. Their holiday ad report indicates that in addition to search (74% plan to use) and product listing ads (61% plan to use), Facebook will be key to how retailers advertise sales and products during the 2016 holiday season.

In fact, 71% say they'll increase their Facebook spending over last year. Kenshoo expects nearly half of holiday budgets to be pushed into Facebook advertising.

"The holiday season is the most competitive time of year to try to stand out in social feeds, so for the 60% of advertisers whose primary goal is direct response, it could be a good strategy to diversify and test all different types of ads - especially video - to see what will get shoppers' attention," said Scott Briggs, Co-CEO of OrionCKB. "The true test will come if one type of ad will start to perform best; it's important to keep some level of agility to capitalise on that and go 'all in' to really maximise spend during the Q4 sprint. The payout is almost always substantial."

The full 2016 Holiday Advertising Survey Report can be found here

Tags: 2016 holiday shopping trends, advertising, ecommerce, Kenshoo, NRF, social commerce, social marketing

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