41% of Millennials To Increase Holiday Spending This Year
Last month, we highlighted a report from Deloitte that predicts at least a 5% increase in holiday-related consumer spending this year. Another company, OpenX, in collaboration with The Harris Poll, has just released its prediction for the 2018 holiday season. Topline findings from the report indicate your clients should target millennials with their ad campaigns.
Overall, 26% of consumers say they’ll spend more on gifts this year. For millennials, that percentage jumps to 41 percent. Other groups that plan to burn through more cash this season include parents (39%) and consumers with household incomes over $100,000 (28%).
On average, consumers have set a holiday spending budget of about $800 and believe the beneficiaries of their generosity will break out as follows:
- Self $70
- Partner $135
- Children $307
- Parents $76
- Relatives $113
- Friend $49
- Co-Workers $16
- Pets $36
- Other $18
Your clients will want to know that consumers with household incomes over $100,000 have a holiday spending budget of $1,257. Pets rule the budgets of many millennials, to the tune of $90 per household in holiday gifts. And, overall, about 20% of shoppers will drop $500 on a big-ticket item.
Consumers have been busy making their gift idea lists. For most, 68%, gift cards rule. At least 63% of consumers will buy apparel and 47% plan to race around to find the hot holiday toys before they disappear from retailer shelves and online sites. Other top gifts include tech-related items (37%) and jewelry (34%).
Researchers remind marketers that they need to use a complete media mix to reach consumers during the holiday season. According to AudienceSCAN at AdMall from Salesfuel, millennials say the following ad formats caused them to take action in the past 30 days:
- Ads on a social network 37.1%
- TV (OTA, online, mobile, tablet) 35.2%
- Smartphone app or text message 31.6%
Between now and Thanksgiving, 38% of consumers will start their holiday shopping. This year, they’ll spend 49% of their budget online and 51% in-store. How will your clients spread their holiday ad spending across media formats to reach consumers this year?