Holiday Marketing And Consumer Spending Forecasts For 2021
With personal finances improving and the general perception of the country's economic outlook increasing, Canadian consumers not only have more disposable cash this holiday season, but they're more willing to spend it. However, many will choose online shopping, preferring the ease and reduced risk of infection. For digital marketers, this is music to their ears and for brands this is a great opportunity to adapt their holiday marketing strategy and be aggressive from the get-go.
Early start to holiday shopping
According to the most recent holiday shopping survey conducted by the Retail Council of Canada, this year 36% percent of the 2,500 Canadians included in the survey are starting their holiday shopping in November, with 30% starting even earlier. This is primarily due to widely reported news of supply chain challenges facing manufacturers and retailers of consumer packaged goods.
Shoppers are getting a head start in order to increase their chances of getting the products and brands they want for the festive season on time. So if you're saving your best online marketing strategies for Black Friday or Cyber Monday, you just might miss out on a third of this year's holiday shoppers.
Increased spending power
PwC’s 2021 Canadian Holiday Outlook shares that although consumer spending will remain below the levels seen before the pandemic in 2019, it is still a significant increase from 2020 with Millennials leading the pack as the highest spenders this festive season.
Overall, Canadians expect to increase their holiday spending by at least 29% from last year and at least 41% of this money will be spent shopping online. Continued travel restrictions for people who usually shop in the United States will also contribute to this shift, as 38% of respondents claim they will be forced to purchase their goods online. This is an increase from 28% in 2020.
Top advertising platforms for holiday marketing
Top social media channels used for product inspiration and purchases.
Source: pwc.com
PwC’s research indicates that when it comes to social media, TikTok is gaining advertising leverage, especially amongst Gen Z consumers, with 55% saying ads on the platform influence their purchase decisions. Though still well behind Facebook, Instagram and YouTube, this is a significant increase from 35% in 2020.
When it comes to the effectiveness of advertising campaigns, the targeted age group plays a big part when selecting the appropriate channel.
Meeting consumer needs and expectations
With holiday shopping this year, what customers want most is options. They want the freedom to do in-person shopping and the convenience of making purchases online. It's not uncommon for customers to visit a store to cross-check the in-store prices with what is seen online. After two years of restricted movement, they're ready to partake in the festivities. Many, however, have gotten used to the convenience of shopping online. They will be joined by those who want to avoid crowds at malls and risk possible infection.
All this is an indication that brands need to start their online campaigns early this year. Waiting for the usual rush around Black Friday means a huge chunk of revenue will be lost. The brands that are proactive and anticipate the needs of their consumers will emerge victorious this holiday season.
