The Impact of Video Ads, Influencers, and Word of Mouth on Holiday Shopping
As the 2024 festive season unfolds, consumer shopping habits are experiencing a significant transformation. The combination of online video ads, influencer marketing, and the lasting influence of word of mouth is shaping how consumers discover, evaluate, and purchase products. This article explores these major trends and their impact on consumer choices during this holiday season, highlighting how brands can engage with modern, informed, and increasingly eco-conscious consumers.
1. Online Video Ads: The Powerhouse of Brand Discovery
Rise in Video Ad Consumption
In 2024, online video ads have emerged as one of the primary sources of information for consumers, with 58% of shoppers discovering new brands and services through video platforms. Video ads effectively blend information with entertainment, catering to consumers’ preference for concise, engaging content. For many, they offer the first touchpoint with brands, encouraging exploration and boosting brand awareness.
Budget Trends and Consumer Spending
With holiday budgets growing, 46% of consumers plan to increase their holiday spending this year, signaling a positive trend for retailers. Millennials are expected to lead this surge, with women shoppers notably increasing their budgets by 70% compared to last year and planning to shop across a range of categories. For brands, this means an opportunity to create targeted video ads that cater to specific demographics, aligning messaging with shoppers’ preferences for both quality and affordability.
Mobile Advertising and Tech Upgrades
The demand for 5G smartphones has created a unique opportunity for mobile phone advertisers. Nearly half of mobile buyers plan to upgrade their devices, making video ads tailored to tech enthusiasts particularly effective. By leveraging the power of video ads, brands can connect directly with consumers who are eager for new gadgets and willing to invest in high-performance tech.
2. Online Shopping: Convenience and Growth in Digital Retail
Consumer Preference for Online Shopping
This holiday season, online shopping continues to grow in popularity, with half of surveyed consumers planning to spend more than last year. The convenience of online shopping, with flexible delivery slots and hassle-free browsing, has contributed to a more positive shopping experience. As a result, online grocery shopping has become increasingly common, with 71% of shoppers turning to digital platforms to save time and enjoy more control over their purchases.
Digital Payment Methods and Rewards
Digital payments, especially the Unified Payments Interface (UPI), have emerged as the preferred transaction method during the holiday season, favored by 82% of consumers for its cashback rewards and quick transactions. As consumers look for payment methods that offer value beyond convenience, UPI’s rewards system has bolstered its popularity, making it the go-to option for festive shopping.
Expansion of Product Variety
Consumers are embracing the wider range of products available online, with 74% of respondents expressing appreciation for the variety of items, from new brands to large appliances. As product categories expand, brands have the chance to offer exclusive launches and discounts to engage holiday shoppers who are eager to try new brands and explore product innovations.
3. Influencer Marketing: Shaping Consumer Choices
Environmental Awareness and Ethical Shopping
In 2024, environmental consciousness continues to shape shopping behaviors, with over 83% of consumers expressing concerns about sustainability, particularly in their fashion and electronics purchases. Influencers are leveraging this trend, often promoting eco-friendly and ethical products, which resonates with audiences who prioritize sustainability in their shopping choices. This is especially true for younger demographics, who are increasingly vocal about their commitment to making responsible purchases.
The Power of Hybrid Shopping
Consumers are blending online and offline shopping, creating a hybrid approach that caters to their desire for flexibility. With 58% of shoppers utilizing both online and in-store channels, brands are partnering with influencers to bridge this gap, helping consumers navigate product choices and make informed decisions. Millennials and Gen-Z, who represent over 85% of online shoppers, are particularly drawn to influencer content, relying on recommendations for both product insights and shopping convenience.
Social media remains a powerful tool, with 53% of consumers turning to platforms like Instagram, TikTok, and YouTube for inspiration. Influencers play a central role in these channels, offering honest reviews and style tips that significantly influence purchase decisions. By aligning with influencers, brands can engage younger audiences, particularly in high-interest categories such as fashion, electronics, and home decor.
4. Word of Mouth: A Timeless Influence on Holiday Gifting
Early Planning and Gift Selections
Word of mouth remains one of the most trusted sources of information, especially for Diwali gift purchases. Nearly 42% of holiday shoppers begin planning their purchases one to four weeks before the holiday, with clothing, fashion accessories, and tech products ranking as top choices. Recommendations from family and friends carry weight, as shoppers turn to familiar voices for ideas and reassurance.
Discount Deals and Word of Mouth Impact
The holiday season is synonymous with deals and discounts, and 91% of Diwali shoppers plan to take advantage of these offers. Word of mouth plays an essential role here, guiding consumers to the best deals and prompting purchases they may not have otherwise considered. Organic social media posts and TV advertisements also contribute, but personal recommendations remain the primary influence, with 25% of consumers citing word of mouth as their main source of shopping inspiration.
Community and Trust in Purchasing Decisions
Word of mouth’s enduring influence is a testament to the trust consumers place in the opinions of those they know. This is particularly evident during holidays, where shoppers seek not only to find good deals but also to buy meaningful gifts. By focusing on authenticity and building trust within communities, brands can benefit from word-of-mouth referrals that are likely to drive festive sales.
Additional Insights: Embracing Digital Influence in Holiday Shopping
The Blend of Convenience, Flexibility, and Conscious Spending
The 2024 festive season showcases a shift towards informed, flexible, and mindful shopping. From online video ads that simplify brand discovery to online shopping’s promise of convenience, digital marketing channels are aligning with evolving consumer preferences. For brands, this means creating shopping experiences that are responsive to the needs of modern consumers.
The Role of Sustainability and Influencer Marketing
As sustainability becomes increasingly important, influencer marketing has adapted, with influencers endorsing eco-friendly products and promoting ethical brands. This approach resonates with audiences, particularly millennials and Gen Z, who seek products that align with their values. By partnering with influencers who promote sustainability, brands can appeal to these environmentally conscious consumers, driving both engagement and loyalty.
Word of Mouth’s Lasting Value
In a digital world, word of mouth remains as relevant as ever, shaping the shopping experience through trusted recommendations. Friends, family, and peers continue to have a powerful influence, especially during festive seasons like Diwali when thoughtful gifting is a priority. As consumers look for reassurance and trusted advice, word-of-mouth recommendations play a vital role in helping them navigate the vast landscape of holiday deals and options.
Conclusion: Strategies for Brands in 2024 Festive Season
The 2024 festive shopping landscape is defined by the convergence of digital and personal influences. Brands that embrace a multi-channel approach, using video ads, influencer partnerships, and authentic recommendations, will be well-positioned to capture the attention and loyalty of holiday shoppers. By prioritizing engaging, informative, and meaningful connections, they can create impactful campaigns that resonate with consumers’ holiday spirit and align with their values.
For brands, the key to success lies in understanding the diverse factors influencing consumer choices and crafting a shopping experience that is seamless, rewarding, and reflective of the values shoppers hold dear this season.
