CTV’s Role in Holiday Digital Marketing: Insights From Matt Voda
The landscape of holiday season planning has evolved over the years, with different brands interpreting “the holidays” in unique ways. Retailers are always looking to capitalize on the festive season, but challenges arise as consumers become more discerning with their spending habits, particularly in certain product categories.
Reflecting on the past, back in 2008, I was involved in a campaign called “100 Days of Holidays” for “Better Homes & Gardens.” This initiative kicked off the month before Halloween and ran through New Year’s Day. Fast forward to today, and we see Halloween merchandise lining store shelves weeks before Labor Day, indicating that planning for upcoming holidays must begin earlier than ever.
The elongation and blending of holidays, alongside the creation of new sales opportunities, have significantly influenced consumer behavior and how brands approach the bustling holiday season. This year, the season is notably shorter, placing added pressure on brands to deliver exceptional results.
As digital marketers gear up for the holiday season, they must navigate shifts in consumer behavior. Here are seven key trends that are expected to shape the upcoming holiday season:
Thanksgiving falls late this November, resulting in five fewer shopping days between Cyber 5, the five-day shopping period spanning from Thanksgiving to Cyber Monday, and the year-end festivities including Christmas, Hanukkah, Kwanzaa, and New Year’s Eve.
Despite initial concerns about consumer spending, EMARKETER predicts a 4.8% increase in total holiday retail sales for this year, up from the 3.9% growth seen in 2023.
Fashion will dominate digital shoppers’ spending this holiday season, while computer and consumer electronics are expected to lag for another year as consumers show less urgency to upgrade these items post-pandemic.
US consumers are forecasted to spend an average of two hours and 15 minutes daily watching connected TV (CTV) in 2024, according to EMARKETER. Shoppable CTV ads are simplifying the shopping experience by allowing consumers to make purchases directly from the media they are viewing.
CTV advertisers have the potential to reach 206.3 million second-screen users who use their mobile devices to explore brands and products they discover on TV, as per EMARKETER.
Consumers are displaying more discernment in their holiday spending habits, with over 60% of Americans citing affordability as a significant factor in their purchase decisions. This may explain the uptick in early holiday shopping compared to previous years.
Excessive choices and information overload can deter consumers, with 60% of US consumers admitting to abandoning purchases when overwhelmed, according to a Google/Ipsos study.
How CTV Fits Into Digital Marketing During Holiday Season: Interview With Matt Voda
To gain insight into the role of CTV in holiday marketing strategies, I spoke with Matt Voda, CEO of OptiMine, a seasoned marketing expert advising renowned brands like Amazon, Ring, and Best Buy. Here are some key questions and Voda’s responses:
Greg Jarboe: How do you plan to navigate the shorter holiday shopping season?
Matt Voda: OptiMine’s clients leverage our scenario planning capabilities to simulate various strategies in light of the shorter holiday timeline. This may involve initiating campaigns earlier, intensifying efforts sooner, or implementing last-minute campaigns for procrastinating shoppers.
Jarboe: Do you anticipate holiday retail sales to increase, decrease, or remain stable this year?
Voda: The retail landscape has shown resilience despite initial forecasts suggesting otherwise. Retailers equipped with agile marketing measurement tools can swiftly adapt to changing consumer behaviors, enabling them to outperform competitors.
Jarboe: Which retail categories do you predict will demonstrate resilience in 2024?
Voda: While specific categories may face challenges, successful retailers will integrate advanced customer insights with precise marketing measurements to tailor strategies that resonate with key consumer segments, ensuring sustained success.
Jarboe: How does CTV factor into your digital marketing mix for the holiday season?
Voda: CTV offers superior targeting capabilities compared to traditional TV, making it a valuable tool for brands seeking precise audience reach. As the lines between TV and digital video blur, CTV plays a vital role in enhancing marketing effectiveness.
Jarboe: Will your holiday campaigns target second-screen users?
Voda: Forward-thinking retailers understand the importance of a cohesive media strategy that accounts for multiple touchpoints. By leveraging robust measurement tools, retailers can optimize their investment mix across various channels, including second-screen interactions.
Jarboe: Can social video influence selective shoppers’ purchase decisions?
Voda: Absolutely. OptiMine’s research highlights the effectiveness of social video in driving engagement and acquisition, particularly among new customers. Brands leveraging social video creatively can capture the attention of discerning consumers.
Jarboe: How do you strike a balance between providing consumers with essential information without overwhelming them?
Voda: Creative messaging remains paramount in successful campaigns. While AI tools offer valuable insights, investing in human creative talent can elevate campaigns and ensure optimal consumer engagement.
Adapting to Consumer Trends Creatively
As digital marketers brace for the holiday season, creativity and adaptability are key to navigating evolving trends. Connected TV presents a valuable opportunity to engage consumers and drive sales through streamlined interactions. By monitoring media performance and optimizing channel mix, marketers can enhance their outreach strategies.
Investing in human creative talent is crucial for crafting compelling messages across various channels. Embracing new experiences like shoppable ads on CTV and social media can boost ecommerce sales during the holidays. While the landscape may present challenges, the ability to innovate and pivot will set brands apart in a competitive market.
In the words of Jimmy Dugan from “A League of Their Own,” “It’s supposed to be hard. If it wasn’t hard, everyone would do it. The hard… is what makes it great.”
Remember, success in holiday marketing requires a mix of strategy, creativity, and adaptability. By staying attuned to consumer behaviors and leveraging emerging trends like CTV, brands can make the most of the festive season.
Sources:
• EMARKETER Insights
• Google/Ipsos Studies
Image Source: Stock-Asso/Shutterstock