2020 Holiday Intelligence Report
2020 Holiday Intelligence Report
Network Performance by Day
Peak Week Performance by Day
Top Categories YOY
KPIs by Device
Scenario One
Economies are Rebounding
If the global pandemic has waned, and unemployment has eased, the holiday season could look like last year…with a twist. Stores will be open but with limited hours or restrictions, and there will be still be some desire to avoid large crowds. Google research says that 70% of shoppers intend to plan their shopping earlier to avoid crowds. Fear of product shortages will be a thing of the past and domestic holiday travel may even be on the table for some households. White collar workers will still be working from home and there will be an ongoing focus on fitness and wellness. Cautious optimism about the pandemic means that shoppers can see the light at the end of the tunnel and have emerged with new habits, including a greater reliance on online retailers to meet their needs.
Scenario Two
Store Closures Persist
A resurgence requiring stay at home orders and school closures will deepen our dependence on digital tools for all parts of our lives. Online learning subscriptions, streaming entertainment, online grocery, click & collect services—all the buying preferences and behaviors of the pandemic’s first phase will return, yet without the novelty of being new. Video content of all types will be heavily consumed and well-received by shoppers looking for entertainment and connection. Upgrades of consumer electronics and computers needed for home office work and home schooling will be on shoppers’ minds. In the northern hemisphere, cool weather will hinder the ability to maintain outdoor exercise routines and there will be renewed interest in indoor exercise and related gear. Consumer sentiment declines due to growing unemployment and uncertainty as to how the pandemic will stress industries that were able to survive the pandemic’s first wave.
Harness the New Normal
Make the new normal—remote work, a focus on wellness, more time spent at home—work for your business by considering it closely to identify potential pivots for your affiliate program. This has been the winning strategy for many brands who leaned heavily into the affiliate channel during the pandemic’s first wave and will serve retailers well during the holiday season. For brands who offer products in high-demand due to the pandemic, heightened competition will be a real risk this holiday season. Standing out and showing up in search results is critical and can be achieved by working with search publishers. Many advertisers in the pandemic’s early days realized the inherent value of switching search channel investments to the performance channel and this strategy will continue to be an important one for the holiday season.
Test New Partnerships and Collaborations
Many marketers this year have discovered that crisis-driven innovation can be a good thing for their affiliate program and the bottom-line. New relationships or promotional methods that could not get the green light in “normal” times have gotten fast-tracked, helping advertisers experience first-hand one of the best aspects of performance marketing—it’s an ideal environment for testing while minimizing risk. This holiday season new partnerships can provide critical reach into targeted audiences, new demographics, and can also amplify a brand’s exposure. CJ’s Content Certified Network, for example, is a way for advertisers and publishers to explore new, mutually beneficial partnerships that convey a brand’s value and products in authentic articles and content posts.
Show Product Availability and Shipping Times
One of the biggest challenges during the pandemic has been product availability—47% of online shoppers experienced both out-of-stocks and shipping delays. Availability and speed of shipping will be a major consideration for shoppers this season. Marketers should be very clear if an item is in stock and ready to ship, as well as offer estimated shipping times. This is especially important to show on Black Friday and Cyber Monday—a negative shipping or stocking experience for a newly acquired customer means they will turn to a competitor in the future. Some shoppers will anticipate inventory and shipping issues and buy earlier, but past holiday buying trends show purchasing increases three to five days preceding gifting holidays. As shipping windows close, retailers need to pivot their affiliate promotions to focus on gift cards and publishers should highlight these along with experiential gift ideas (music, e-books, videos, and subscriptions) that do not require shipping.
Offer Flexible Payments and In-Store Pickup
Retailers can overcome shopper hesitance to purchase by addressing two concerns head on: affordability and in-store crowds. To meet the needs of shoppers seeking alternative payment methods this year, advertisers should consider how Buy Now, Pay Later publishers could attract shoppers who might not purchase with them otherwise. Buy now, pay later services have become popular with younger shoppers (think millennial or Gen Z) who tend to use debit cards over credit. Shoppers are on board with in-store pickup for orders completed online and brands should be promoting this option heavily this year, if feasible, within the affiliate channel. In some regions, where the pandemic has waned, brands should also explore how CJ’s Site to Store tracking can leverage affiliate reach to drive in-store visits with geo-targeted promotions and offers.