• by Laurie Sullivan  @lauriesullivan, September 13, 2024

Search is no longer the leading way that consumers find specials online and in stores, and this shift in discovery could influence where advertisers make media buys this holiday season.

Some 44% of U.S. consumers say they find special offers through online advertising and in-store signs. That number rises to 51% of consumers in the U.K.

Email is still popular, with 36% turning to online inboxes. It ranked second in terms of the most popular way consumers discover offers and specials, according to a Coveo study, conducted in partnership with Arlington Research in July. 

Despite tight discretionary budgets, 59% of shoppers saying they plan to cut everyday purchases to prioritize gifting budgets, and 76% plan to maintain or increase gift purchases this holiday season.

Emarketer notes 36% of consumers expect to spend more this year, with inflation cited as the top reason. The data also notes that food & beverage, health & personal care, apparel, and footwear & accessories will become the fastest-growing categories for holiday retail and ecommerce.

Platforms like Instagram ranked third, with 35% of those who participating in the survey saying they turn to social media. Dividing that percentage by demographics, Gen Z is at the top with 65%, followed by Millennials at 50%, Gen X at 29%, Baby Boomers at 12% and Silent Generation at 75%.

Consumers said they find special offers on Google and other search engines at 32%, followed by online marketplaces like Amazon at 28%.

TV advertisements also contributed, at 24%, followed by word of mouth, at 22%; print mailings and coupons, at 20%, and and other at 1%.

Spontaneous buys were mostly attached to clothing. Some 45% of consumers cited fashion, shoes and apparel as the top online spontaneous purchase. But that spontaneous buy could cost consumers.

High rates of returns are forcing some retailers like Saks Fifth Ave to keep long time frames for return reimbursements.

In Saks case, up to 30 days for merchandise. According to Google Gemini, the average time for online retailers is between three and 10 days after the retailer receives the returned item.

Food, beverage sweets and wellness products also have a high spontaneously buy rate, at 44%. Beauty products and cosmetics followed at 31%, home and garden at 25%, games and gadgets at 25%, and sporting goods at 14%.

Cost, value and budget, at 25%, has become the biggest concern around shopping for the end-of-year holidays.

Buying the correct gift at 14% followed, with on-time deliveries at 11%, product quality at 9%, product availability at 8%, shipping costs at 6%, finding the time to shop at 5%, and return options at 4%.

There are other ways to encourage consumers to spend more. Some 62% said meeting the minimum spend to get free shipping would compel them to add items to the online cart. About 48% cite special offers, 26% cite recommendations for family members, and 26% cite recommendations for other items.

Amazon and Sephora are examples of retailers that use AI to help consumers compare products by providing personalized recommendations based on past purchases, browsing behavior, and other customer data.