New Study: Online Shopping Expected to Soar for the 2023 Holiday Season
Nov 20 2023
– Middle and upper-class households fuel spending despite economic uncertainty –
– PLUS: Digital Sources Reign Supreme in Shaping Gift Ideas:
53% of Adults Turn to Online Inspiration –
DENVER, CO (November 20, 2023) — Adtaxi, one of the nation’s fastest-growing digital marketing agencies, today announced the results of its 2023 Holiday Shopping Survey. The results offer a nuanced perspective on this year’s holiday spending trends. Initially, it may seem that overall spending levels will remain relatively stable. However, a deeper analysis sheds light on the underlying reasons behind an expected boost in sales this holiday season – particularly when categorizing respondents by household income.
When consumers were asked how much they planned to spend on holiday shopping compared to last year, a majority of households below the $75,000 income threshold claimed they were inclined to reduce their holiday spending compared to the previous year. A noteworthy shift emerges as we move into the $75,000 to $99,000 income bracket, where an uptick in the average holiday spending was reported. The most substantial shift was seen among households earning over $100,000 annually, with twice as many individuals planning to increase their holiday spending.
“With affluent Americans expected to drive sales this holiday season, marketers and retailers must remain vigilant in their advertising strategies as a percent of the population is being selective with their purchases,” said Chris Loretto, EVP of Adtaxi. “The survey also pointed to online purchases as the primary shopping source among all income levels, again proving that marketers must increase their digital footprint in order to stand out.”
Among the survey’s key findings include:
Black Friday Shopping Excitement: An overwhelming 93% of respondents are eagerly planning to partake in the festivities during the 2023 season. Among those enthusiastic shoppers, an impressive 60.9% have made clear their intentions to capitalize on the paramount shopping day of the year: Black Friday. The designated shopping day has consistently reigned supreme, and its dominion is expected to endure, as it is favored by a substantial 67% of adults aged 30-44 and a remarkable 76% of adults aged 18-29. Following closely behind, 51% plan to shop on Cyber Monday.
Online & In-Store Shopping Intertwined: A staggering 77% of adults are accustomed to perusing items in physical stores and subsequently completing their transactions online. Close behind, 74% of adults have also embraced the opposite approach of first exploring products online before making in-store purchases, signifying the normalization of this dual approach and reinforcing Americans’ dependency on both shopping sources.
Digital Purchases Remain On Top: Regardless of their initial shopping approach, it is apparent that the trend towards making online purchases is consistently on the rise. A notable 1-in-6 adults (16%) make an online purchase every day. This figure demonstrates an increase when compared to the statistics from the previous year (12%) and a substantial leap from a mere 5% in 2017.
Convenience is Key: When respondents considered their top 3 reasons for shopping online, a resounding 63% of respondents included convenience in their response. This strong emphasis on convenience reaffirms the pivotal role it plays in driving consumers towards digital platforms. Secondary motivations included the allure of better deals (38%), broader selections (30%), and their desire to avoid in-store crowds (27%) as a factor that influences their shopping decisions.
Necessity Drives Purchases: The survey underscores the remarkable role that ecommerce plays in our lives, with a resounding 43% of respondents attributing their online purchases to necessity. Additionally, when asked about the role that digital messaging and advertisements play, 40% say it plays a role in their choice to purchase. In stark contrast, a mere 2% cited traditional media channels (TV, Cable, Radio, Magazine, Billboards, and Direct Mail) as triggers for their online purchases.
Finding New Customers: The survey also found that luring in new customers requires a great deal of incentives like free shipping (63%) and introductory discounts (52%). Furthermore, 3-in-10 of respondents revealed that exclusive products and loyalty points serve as enticing factors for them as well.
Loyalty to Online Shopping: When respondents were asked about their preference for conducting all of their consumer purchases online, an impressive 72% expressed their agreement. This statistic exhibits a substantial surge from the 55% recorded in 2017, underlining the remarkable growth in the desire to embrace online shopping.
“After seven consecutive years of surveying consumers and their holiday shopping, all signs point towards ecommerce continuing to skyrocket,” said Murry Woronoff, National Director of Research at Adtaxi. “While our forward-looking analysis projects an increase of approximately 2-4% regarding in-store holiday sales from year to year, ecommerce sales are expected to see robust growth in the 10-12% range. We look forward to continuing to watch these trends closely in the coming years.”
Read the full report here: https://www.adtaxi.com/landing/2311-mr-holiday/
This survey was conducted online using Survey Monkey, among a sample of 1,137 adult respondents. The surveyed population is balanced across U.S. geographic regions, income levels, gender, and age. The survey was conducted on November 2, 2023.
Founded in 2010 within MediaNews Group, Adtaxi made its mark in programmatic advertising before expanding into search, social, and connected TV. Over time, Adtaxi has refined and perfected its holistic performance-based strategy, which became the foundation of Quantum, originally launched in 2015. Leveraging the power of people plus technology, Adtaxi’s innovative full-funnel methodology leverages a variety of tools and processes throughout the client lifecycle to drive omnichannel optimizations across channels to maximize performance and deliver superior value for advertisers. Adtaxi functions as a true partner with its clients, acting as a single point of contact and support through multi-platform campaign cycles. Find Adtaxi on Twitter, LinkedIn and Facebook.