RSS feed Get our RSS feed

News by Topic

BizReport : Advertising archives : July 15, 2019

Reports: Look for strong BTS spending

Now that the US is halfway through the summer holidays, retailers and brands - and parents - are beginning to think about going back to school. And, according to one new report, the overall spend will reach nearly $28 billion.

by Kristina Knight

That could be an average of $519 per student, spread across apparel/shoes, electronic, and computer verticals. And, much of that spend will come from smartphones. According to Deloitte's annual Back to School forecast about 60% of consumers will use smartphones to shop for back to school this year. Shoppers will be visiting store websites (54%), comparing prices (51%), and deal searching (51%) from their phones.

"For the first time, people are telling us they're just as likely to use a smartphone to make purchases as a laptop or desktop, which previously held the lead when it was time to click the 'buy' button," said Rod Sides, vice chairman, Deloitte LLP and U.S. retail, wholesale and distribution leader. "Additionally, we continue to see just over half of purchases occurring in the stores, with undecided shoppers gravitating online. Retailers who understand this will position a range of in-store and digital offerings to meet consumers where they are."

Other interesting findings from Deloitte include:

▪ 56% of BTS purchases will occur in-store
▪ Electronics/gadgets spending is expected to raise 29% YoY
▪ 69% of shoppers say price is the most important factor in purchasing

Data from Cardlytics backs up the Deloitte forecast. Their researchers note that spending at specific brick-and-mortar stores may well be flat for the year, but at brick-and-mortar websites, spending will increase about 31% YoY. Spending at online-only retailers, meanwhile, is expected to increase about 20% for the BTS season.

Their data also indicates that an omni-channel strategy is important for merchants as omni-channel shoppers are driving about 48% of spending. Their data also shows that customers acquired during the BTS season are more valuable than those acquired over the holiday shopping season. During the holidays, shoppers acquired during the back-to-school rush are expected to spend just over $163 at holiday retailers vs. the $132 that shoppers acquired during the holiday season will spend.

More Cardlytics data can be accessed here.

Tags: advertising, back to school ads, back to school advertising, Back to School spending, BTS trends, Cardlytics, Deloitte, ecommerce, mobile marketing

Subscribe to BizReport



Copyright © 1999- BizReport. All rights reserved.
Republication or redistribution of BizReport content is expressly prohibited without the prior written consent.
BizReport shall not be liable for any errors in the content, or for any actions taken in reliance thereon.