Though today’s shoppers can be especially careful decision-makers, when it comes to the holiday season, they’re already gearing up to spend. So, for brands and retailers, planning for a profitable peak season starts with forging meaningful connections throughout shoppers’ long and complex purchase journeys.
In 2023, peak retail season online sales reached a new worldwide record, with over $1 trillion in spending across November and December alone.1 Our research shows that peak season is now stretching longer, from October to early January.2 And with online retail search interest growing steadily year on year, 2024 is predicted to be even bigger than before.3
That means there’s even more opportunity for brands and retailers to reach their business goals by driving confidence as consumers make decisions in their buying process. With a deep understanding of shopper mindsets, plus Google’s AI-powered ad solutions, you’ll be poised to fuel profitability throughout peak season and beyond. Here’s how.
In a challenging economic environment, building confidence is key
Peak season won’t be without obstacles. Locally, it’s been a challenging year with inflation still impacting shoppers' decision making, but the average consumer confidence rating has increased year on year in 2024.4 Of those surveyed in 2023, 68% of Australians5 and 73% of New Zealanders6 agreed with the statement: “I am optimistic that next year will be better than this year.” Despite the macroeconomic factors both shoppers and retailers are facing, this shows great opportunity.
Shoppers are wanting to boost their confidence, and are putting in the time and effort. Sixty-seven percent of Aussies surveyed say making the right purchase decision requires more effort than it used to, so they’re doing more research to do so.7 And all signs point to shopper intent being high across the whole season — with shoppers looking for and buying things at all times.
One shopper can flow between four mindsets throughout peak season
Peak season will be a continuous journey, not condensed to just key sales moments. Our research shows that each shopper can flow through four different mindsets — deliberate, determined, deal-seeking and devoted — at different periods of the season.
These mindsets are the ways shoppers think about their purchases and behave accordingly. Depending on their motivations and needs at the time, people spend more time in some mindsets than others — but you can definitely expect deliberate and determined to be the most prevalent across the season. By aligning your peak season strategy to these mindsets, you can strengthen your customer connections and drive greater results at each crucial stage.
Deliberate
These shoppers like to plan ahead. They’re looking for inspiration, doing their research, and even making purchasing decisions well ahead of sales moments. So, engaging with shoppers early in the season is critical as they are seeking out inspiration and are open to discovery and exploration.
Thirty-five percent of Kiwis surveyed said they’re doing more research on their purchases,8 and 66% of Aussies report visiting multiple websites before settling on what and where to buy.9
It’s important to be present and engage deliberate shoppers early in the season. Using YouTube Video view campaigns and Video reach campaigns, you can inspire deliberate shoppers as they browse for gifts and then convert them with a clear call to action. You can capture even more intent by running Demand Gen campaigns to meet them when they choose that perfect gift, driving purchase consideration and action.
Determined
As the season progresses, the determined mindset prevails. Here, shoppers are highly likely to make a purchase as gifting occasions draw closer. Though they may not know exactly what they want to buy, people start feeling the pressure.
Purchases and conversions accelerate prior to Christmas, so brands need to stay vigilant through the end of the season,10 providing relevant information to support their research. For omnichannel retailers, making sure you have clear and transparent pricing, deals, and product info will help draw customers into your store.
In these last-minute shopping moments, many shoppers turn to Google to help them find the information they need to complete purchases.11 Performance Max campaigns can help you spotlight your hero holiday products across touchpoints, for determined shoppers to find in the crucial moments they’re ready to buy.
Deal-seeking
Deal-seeking is an always-on behaviour that’s not tied to a single sales day. In fact, 82% of Christmas shoppers say they keep their eyes open for deals, discounts and promotions throughout the season.12
Seventy-eight percent of shoppers find it important to ‘know they got a good deal,’13 but we’ve found that in Australia and New Zealand, deal-seeking is not the dominant mindset.14 It’s heightened over certain times — like Cyber Weekend — but there are always other mindsets playing out alongside deal-seeking.
By strategically planning promotions that build anticipation ahead of key dates, marketers can extend the shopping intent for sustained performance throughout the season.
By using the Ads Power Pair — AI-powered Search and Performance Max — you can capture shoppers you didn’t know were looking for you when and where they’re looking, with search queries you may not be bidding on yet.
With Shopping Feeds in Google Merchant Center, you can also drive engagement with deal-seeking shoppers by providing key information like deals, ratings, reviews, and fulfilment options within your product listings.
Devoted
Those in the devoted mindset keep shopping after peak sales moments. As shoppers become more confident that a brand can provide them with information they need, they become more devoted, seeking out that brand again. In the first two months of 2024, we saw that more than 40% of shopping searches on Google mentioned a brand or retailer name.15
Especially brand loyal, devoted shoppers may make repeat purchases throughout the season from the same brand that won their confidence earlier on.
Budget optimisation is especially important for connecting with devoted shoppers. The Insights tab in your Google Ads account will help to predict spikes in demand, and a good rule of thumb is to keep 30% of headroom in your budget to cover any other unforeseen peaks.
Plus, Google’s AI-powered Smart Bidding strategies like Target ROAS can optimise towards your profitability goals, so you’ll always bid for your most profitable or devoted customers.
Get ready to power peak profitability
This peak season, there are endless opportunities to strengthen brand connection and loyalty right through to January. With that in mind, it’s important to build meaningful connections early on, and maintain your marketing budgets for the late season push to support more shoppers across their finish line – all while boosting sales.
We know the consumer journey is still messy, and the path to purchase is long and winding. By tapping into shopper mindsets and putting Google AI to work for you, you can capture more demand, make every peak season connection count, and power profitable growth this peak season and beyond.
These insights were originally presented at Think Commerce: Powering Peak Profitability. Watch the livestream on demand to learn more.
