As Brits’ loyalty to brands continues to erode and their commitment to seeking value continues to rise, retailers are optimising their digital presence in hopes of a bumper festive season.
With online spending reaching ever-higher levels, and brand loyalty going down thanks to the increasing ease of switching between products on the internet, it’s become simultaneously more lucrative and harder for brands to stand out.
“There’s going to be a lot of noise in the market [during the festive season]”, Google’s head of retail Sophie Neary said, adding that the tendency towards generic shopping queries makes it difficult for brands to get a foothold.
“People are becoming less loyal… [it’s] part and parcel of people becoming more price-conscious”, Neary said.
Around 40 per cent of Brits are setting strict budgets and 36 per cent are searching for promotions this festive season, according to data from Accenture.
Stuart Chalmers, retail lead for Accenture in the UK, said: “It will be another tricky festive season for retailers this year. Not only will they need to navigate consumers who continue to be cautious with their spending, but they must account for a developing shift in shopping behaviour, especially amongst Gen Z and Gen Alpha.”
“To meet sales targets, retailers must understand that shoppers are increasingly moving towards digital channels, and resale platforms, not solely for financial reasons, but because they prefer the experience,” Chalmers said.
Gen Z look set to lead the charge on Black Friday, with around two thirds expected to participate, according to CBRE.
“Not only is this shopper group focused on keeping up with the latest trends, but their online engagement also increases the opportunity for occupiers to provide targeted ad campaigns,” CBRE said.
The rise of ads on Youtube
With 46 million adults on Youtube and over half watching on a large TV, targeted ads are becoming a must-have for online retailers during the festive season and beyond.
“One of the things that all brands have to is raise awareness, then harvest awareness,” Neary said. “Youtube one of the most powerful ways to raise awareness.”
“Long-form and short-form ads are both growing exponentially,” Neary said. “It’s a great way to get brands in front of the British public” as well as showing them “what they really want and really need”.
Long-form ads refer to 30-second, narrative-driven ads that play on videos, while short-form ads are around five seconds.
Youtube content is “evergreen”, Neary said, meaning that brands don’t have to rely on creating a viral moment to get in front of a potential customer – they can simply sit in the right place and wait for the customer to come to them.
Targeted advertisements can help retailers figure out who is in the market to buy their products, and then market to them accordingly. AI is able to link what someone is looking for or researching with purchase intent, Neary explained, making it an invaluable tool for retailers.
With people searching for festive goods during events like Black Friday more often and earlier than ever, it’s a “huge moment” for brands, Neary said.
In fact, many retailers went live with Flack Friday offers at the very start of November, partly to take advantage of the rise of ‘Fake Friday’ – the Friday before the official Black Friday sales, which has come to occupy its own space in the retail calendar.
Fake Friday has become increasingly popular in the UK partly because Brits don’t celebrate thanksgiving, and therefore don’t have the official sales day locked into their calendars.
If retailers are able to offer discounts at the right time, to the right customers -particularly during the two upcoming Friday sales days – it will allow them to “meet the moment” and take advantage of the earlier-than-normal shopping interest, Neary said.
“Winning in December starts in November,” she added.