SAN FRANCISCO—New research from Samba TV’ and HarrisX indicates that the majority of shoppers are planning to spend the same or more money on holiday shopping this year despite ongoing economic worries.
Samba TV's 2023 Holiday Report, which surveyed more than 2,500 American adults and provides a detailed look at holiday spending plans, bodes well for advertisers and retailers in a period when the economy has remained strong despite ongoing worries about inflation and consumer confidence.
More specifically, the 2023 Holiday Report found that three in four U.S. adults (75%) plan to spend the same or more holiday shopping this year than last year, while 83% of millennials plan to spend the same or more. The average adult plans to spend $978 this holiday season.
The researchers report that millennials are far and away the biggest holiday spenders, exceeding any other age group by more than $600, the report said. Of millennials planning to spend more than last year, 40% say it’s because they’re in a better financial situation. Overall, millennials plan to spend an average of $1,474 this holiday season, while baby boomers plan to spend an average of $626.
"As we approach the holiday season following a difficult economic climate, our comprehensive consumer survey reveals key insights that reveal consumers are planning to spend more this upcoming holiday season," said Ashwin Navin, co-founder & CEO of Samba TV. “One of the standout findings from the report is the significant influence that millennials will have on this year’s total holiday spend. With social media and TV ads among the top three vehicles for holiday shoppers to get gift ideas, this presents an opportunity for marketers to leverage an effective omniscreen approach to connect with this influential demographic.”
The study also found that hybrid shopping (online and in-store) is the new normal, making both Black Friday and Cyber Monday crucial for brands as majority of shoppers wait until after Thanksgiving to begin holiday shopping.
More than half (54%) of consumers plan to delay their holiday shopping until after Thanksgiving, creating increased importance for brands to maximize their Black Friday and Cyber Monday sales. However, millennials are the exception to this trend, with less than half waiting until November to start shopping. About 70% of people plan to shop on Black Friday this year, the study found.
Half of U.S. adults plan to do an equal mix of in-store and online shopping this holiday season. Black Friday has younger generations hooked on brick-and-mortar, with 48% of Gen Z planning to in-store shop on retail’s most significant day of the year. About one third (34%) of people plan to shop in-store on Black Friday this year, while 58% plan to shop online on Cyber Monday.
"Most shoppers are planning to delay their holiday shopping until after Thanksgiving, making Black Friday and Cyber Monday crucial days for brands to capture attention and drive conversions this year,” continued Samba TV’s Navin. “And don’t forget about your deal shopper. With the bulk of this year’s dollars spent planned for purchases for oneself, consumers are using these holiday sales to get in on deals for themselves.”
The study also found that more than 80% of U.S. adults use streaming services, making it essential for advertisers to tap into this platform for holiday shopping dollars. One in two U.S. adults use social media while watching TV, highlighting the importance of deploying social and television ads for effective targeting. Additionally, social media is the #1 place people draw ideas for gifts.
About one third (33%) of U.S. adults shop online while watching TV, indicating the need for advertisers to create attention-grabbing creatives that promote immediate purchases.
“Consumer spending is steady despite the economic turmoil, but their approach to buying goods and services this holiday season is increasingly more diverse and disaggregated,” said HarrisX CEO Dritan Nesho. “To reach today’s hyperconnected consumers, retailers need disciplined and persistent multi-channel strategies for both advertising and sales; these shoppers increasingly say their buying behavior is influenced as much by social media and streaming as it is by traditional advertising, and they usually partake in digital activities and purchasing concurrently and across multiple screens.”
This survey was conducted online within the United States from August 22-30, 2023, among 2,507 adults in the United States by HarrisX. The sampling margin of error of this poll is plus or minus 2.0 percentage points. The results reflect a nationally representative sample of U.S. adults. Results were weighted for age, gender, region, race/ethnicity, income, mobile carrier, streaming subscriptions, and party ID where necessary to align them with their actual proportions in the population.
