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Survey: Business leaders to invest in social commerce, AI ahead of holidays

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Holiday e-commerce
Nearly all (94%) of the business leaders surveyed by Commercetools are projecting a positive outlook for the holiday season.

The vast majority of business leaders are expecting higher holiday sales this season, according to a new survey.

Global commerce firm Commercetools’ new report, "Unwrapping Success: Key Investments Driving Holiday Sales,” shows that 94% of business leaders surveyed are projecting a positive outlook, and 89% expecting higher revenues than in 2023.

To make sure the 2024 season is as profitable as possible, leaders say they are taking a handful of proactive measures. More than half (55%) are upgrading their e-commerce platforms, 81% are investing in tech improvements, and 77% are enhancing social commerce capabilities.

Commercetools’ new report noted that according to data from eMarketer, 67% of consumers use social media to research products before purchasing. Along the same lines, the report found that 69% of business leaders are ramping up investments in social media advertising to respond to meet shoppers where they are. Facebook Shop/Marketplace is the most popular among brands, with 71% of businesses planning to use the platform for holiday sales. TikTok Shop is also on the rise, with 55% of companies planning to invest there for holiday campaigns.

"Staying ahead of consumer behavior is more critical than ever,” said Jen Jones, chief marketing officer at Commercetools. “Platforms like TikTok and Instagram are no longer just social networks — they're becoming go-to search engines and shopping hubs. For CFOs and CTOs, deepening social commerce capabilities is a strategic move to position your business where consumers are actively searching and spending. While in-store and online shopping still hold ground, this rapidly growing segment could be a key to dominating this holiday season and beyond.”

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[READ MORE: Adobe: U.S. online holiday spend to shatter records at $240.8 billion]

Commercetools also noted that AI is on the agenda for business leaders ahead of the 2024 holiday season. Currently, 62% of businesses are already leveraging AI, with another 32% planning to implement it. While half (51%) of retailers are using chatbots for customer support and 93% are benefiting from AI-driven personalized advertising, Commercetools says the focus is shifting toward AI applications with proven ROI.

The vast majority of retailers (91%) retailers report improved forecasting accuracy from leveraging AI, which helps them avoid costly stockouts or overstocks, while 94% have enhanced their fraud detection capabilities in response to rising online threats.

“If you're not deeply embedding these technologies into your business, you're not just behind — you're risking irrelevance in the most critical sales period of the year," added Jones. 

Commercetools surveyed more than 500 business leaders across the commerce landscape for its latest report. 

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