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Holiday spending to grow with caveats for DOOH, other channels

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November 10, 2022

The National Retail Federation predicts U.S. holiday shopping spend to grow between 6%-8% this year, topping out between $942.6 billion and $960.4 billion, but economic pressure is making consumers nervous, and advertisers are finding more success this year with discount messaging over sentimental, according to a report from Ad Age.

As the economy and supply chain continue to experience pressure from factors like the pandemic and war in Europe, consumers are likely to be cautious in their spending. "Consumers are looking for discounts and deals — for value to stretch their dollars in the face of higher energy prices, higher housing prices," Matthew Shay, president and CEO at the National Retail Federation, said in the report. "We think that's going to continue for the holiday season with bargains."

The report also notes that DTC brands are pivoting from prioritization of social media platforms and influencers and leaning into traditional channels, like television and print, along with the pivot from emotional creative.

"When you have a more discretionary consumer, to win them there is going to have to be a push into discounting and messaging that really features around specific value propositions and reasons to engage with the retailer at a certain time," Bruce Williams, executive VP, head of performance media at Dentsu Media, said in the report.