2024 Holiday Shopping: 8 Trends to Fuel Your Advertising Strategy

As we approach the 2024 holiday season, retailers and marketers are preparing for a unique set of challenges shaped by economic and political factors along with shifts in consumer shopping behavior. With the presidential election likely fragmenting consumer attention and a shortened holiday calendar—five fewer shopping days between Cyber Monday and Christmas—both consumers and retailers will need to adapt quickly. 

Retailers must focus on driving foot traffic, leveraging mobile strategies like app downloads and Buy Online, Pick Up In-Store (BOPIS), and offering value-driven experiences. To stay competitive, we put together 8 major trends retailers and marketers need to know heading into this holiday season:

8 Major Trends Shaping 2024 Holiday Shopping

1. Consumers Aren’t Cutting Back on Holiday Spending

A May 2024 survey by Basis Technologies shows 56% of U.S. consumers will maintain their holiday spending levels, while over a third plan to increase their spending, driven primarily by inflation. This is an opportunity for advertisers to focus on messaging that appeals to both stability and premium offerings, aligning campaigns with consumer sentiment for maximizing conversions.

2. Timing is Everything in 2024

The importance of timing will be amplified this holiday season. Amazon’s October sales event alone is forecasted to generate $6.79 billion, a 10.3% year-over-year increase. Early October sales are now a key driver for the holidays, with half of U.S. consumers planning to shop before Thanksgiving, according to CivicScience. However, with a U.S. presidential election and a late Thanksgiving, retailers will face a shortened window for holiday promotions — making strategic ad timing critical.

3. The Battle to Stretch Consumer Budgets

Amazon is expected to capture 42.1% of U.S. online holiday shopping, solidifying its dominant position. Walmart is projected to lead in year-over-year eCommerce growth among major U.S. retailers, while Target is set for a rebound after two years of decline. To attract budget-conscious shoppers, Amazon is introducing a new section of affordable goods, directly competing with rising low-cost players like Temu, Shein, and TikTok Shop. Retailers will need to refine their messaging and strategically leverage advertising platforms to emphasize value and affordability.

4. In-Store Sales Rebound

In-store holiday sales are set to grow by 3.7% — more than double the annual growth rate. The shorter shopping window between Thanksgiving and Christmas is expected to pressure shipping and delivery times, pushing more consumers to physical stores. To maximize foot traffic, retailers should blend online and offline strategies, focusing on localized ads and personalized offers to drive customer engagement.

5. Holiday eCommerce to Grow at Its Fastest Rate Since 2021

Online sales will surge by 9.5% year-over-year, with holiday eCommerce representing 22.3% of total annual U.S. retail eCommerce. With average monthly online sales expected to be 43% higher during the holidays, retailers should double down on digital advertising. Paid search, social ads, and programmatic campaigns will be key to capturing this growing demand.

6. Mobile Shopping to Drive Digital Sales

Mobile eCommerce will play a pivotal role, contributing over three-quarters of the net holiday eCommerce growth. Mobile’s share will rise to 52.7% during the season, compared to 44.6% for the full year. Retailers need to focus on mobile-optimized ad formats and seamless mobile experiences, ensuring that their digital campaigns are designed to capture this surge in mobile shopping. A large part of this success lies in mobile and platform-optimized creative that resonates with audiences.

7. Cyber Five’s Shrinking eCommerce Share

The Cyber Five — Thanksgiving, Black Friday, Small Business Saturday, Sunday, and Cyber Monday — will see a dip in their share of holiday eCommerce, dropping to 15.5%, down from a peak of 20% in 2019. This reflects a broader shift toward early and extended shopping periods. Retailers should be prepared with sustained advertising strategies throughout the season, rather than just relying on big event days, to capitalize on shifting consumer behavior during Cyber Week.

8. Essentials and Modest Splurges to Lead

During the holiday season, essentials like food and beverage will top overall sales growth, followed by apparel, footwear, and health and personal care. Online sales will improve across most categories, though many will fall short of the anticipated 9.5% growth rate. Advertisers should tailor campaigns to highlight essentials and strategically promote modest splurges, using data-driven insights to meet shoppers' needs across product categories.

Success in the 2024 holiday season will come down to timing, value-driven strategies, and meeting consumers where they are — whether online or in-store. Stay ahead of the competition with data-backed advertising. Contact Rise to elevate your holiday campaigns and drive results.