New data from YouTube advertising company Channel Factory reveals that brands and consumers may have a difficult 2022 Christmas season, as 65% of U.S. shoppers say they will spend less than last holiday season.
Due to rising energy prices and an ongoing cost-of-living crisis, prices are at the forefront of consumers' minds, with 57% deciding that price will be the main factor in their purchasing decisions, and nearly half of the study's 500 U.S. respondents actively seeking more promotions.
Almost 40% of respondents will spend less per person while still giving gifts to the same people.
Lauren Douglass, senior vice president of marketing at Channel Factory, says that “these behaviors lead to one conclusion or outcome: a hit to the profits of many retailers who will need to rethink their commercial approach this Christmas, like pushing discounts and sale periods, or thinking more about group gifts, as the research suggests.”
More than half of consumers will be looking to reduce their spending on items that are commonly gifted such as jewelry, perfume, and tech products.
But the data shows they are also re-evaluating their spending on celebrating, as 39% will reduce spending on Christmas activities and entertainment, while 40% will reduce spending on travel.
The study also suggests that a key focus this holiday season for advertisers revolves around ensuring continuous reach at the right time, and with the right message.
Over 40% of consumers said that seeing an online ad for an item will inspire them to purchase a specific item.
Meanwhile, 15% of consumers said an influencer talking about an item will inspire them to buy that specific item.
In terms of global holiday shopping habits, Channel Factory also found that 78% say they will buy online during a holiday or January sale such as Black Friday, Cyber Monday, Giving Tuesday, or even post-January sales.