Survey: Holiday trends include social media marketing, AI, steep discounts

With younger consumers bullish on holiday shopping, retailers are targeting their marketing efforts to where these shoppers are best reached.

Over half (54%) of business leaders plan to increase spending on social media ads, according to a nationwide survey of 500 business leaders of small-to medium U.S. retailers as well as 1,000 consumers by online freelance marketplace Fiverr International Ltd.

In addition, 52% of respondents said they plan to pursue influencer partnerships. And 46% said they plan to invest in organic content on social media. More than 40% of business leaders plan to increase investment in either partnerships with other brands (46%), updated product pages/SEO (41%) or email marketing (48%).

As for consumers, 20% plan to find gifts on TikTok Shop, with the percentage highest among Gen Z, with 37% reporting planning to find gifts via the platform. Similarly, 19% plan to find gifts via influencer recommendations, and 28% plan to look at Instagram/Facebook ads.

But most shoppers are still headed to the mall. Sixty-percent of U.S. shoppers plan to look for gifts in-store, according to the survey.

AI

The survey also found that amid continuing staffing shortages, businesses are leveraging AI tools and freelance talent to keep up. Over half (55%) of business leaders said they plan on using AI tools to expedite work, and among those working with/planning to work with freelancers, 36% are looking for AI support.

Thirty-eight percent of business leaders said staffing shortages were a concern this holiday season, and 31% have been working with/plan to work with freelancers during the holiday season.

About 40% of those who have been working with/are planning to work with freelancers are looking for either e-commerce services (40%), digital marketing (41%), or market research/data analysis (40%). Just over 1 in 3 (34%) are looking for social media marketing services.

“Freelancers skilled in digital marketing can turbocharge campaigns, optimize customer reach, and create a brand resonance that lingers well into the new year,” said Gali Arnon, Fiverr’s chief marketing officer

Discounts

Over half (55%) of business leaders said they plan to offer steeper discounts this year than last year. Among those planning to offer steeper discounts, 43% said they would be between 25-40% off.  This could be a smart move, noted Fiverr, as 57% of consumers said good deals and discounts were a priority when it comes to holiday shopping.

Other findings from the Fiverr study are below.

•Thirty-two percent of consumers said they plan to spend more this year than last year. This number was even higher among younger shoppers, especially millennials, 47% of whom said they planned to spend more².

•Forty-six percent of business leaders said inflation impacting sales was among the greatest challenges they would confront this holiday season, compared to only 37% in 2022.

•Over half (51%) of respondents said supply chain disruptions and inventory shortages would also be among the greatest challenges they anticipate their business will encounter, an increase from 43% last year.

But 84% of business leaders expect sales to increase this year, with close to a third (32%) saying they expected sales to increase “significantly.”

Fiverr conducted the nationwide survey of 1,000 consumers and 500 small-to-medium business leaders (excluding sole traders) in partnership with Censuswide.