Creating Competitive eCommerce Brand Strategies for 2024 Using Insights from Black Friday Weekend ft. MikMak, Suzy, and Reckitt

Adobe Analytics data revealed a remarkable surge in holiday season spending, with Cyber Monday growing by 9.6 percent year-over-year to $12.4 billion, and Cyber Week increasing by 7.8 percent year-over-year to $38 billion. The holiday shopping season, marked by Black Friday and Cyber Monday, remains a pivotal time for both consumers and businesses.

A recent webinar, hosted by Rachel Tipograph, Founder and CEO of MikMak, and Matt Britton, Founder and CEO of Suzy,  featured a special guest Carolyn Nephew, Director of Full-Funnel Consumer Engagement at Reckitt. The experts delved into the nuances of this year's shopping trends, consumer behavior, and the implications for brands heading into 2024.

Online & mobile sales were up on Black Friday and Cyber Monday

Exploring the dynamics between economic indicators and consumer behavior reveals that, despite 81 percent of consumers expressing an intention to shop during Black Friday and Cyber Monday, only 71 percent followed through, highlighting the gap between consumer intent and actual shopping behavior. The pandemic's impact on spending is evident, with a 20 percent reduction in basket sizes and a preference for budget-friendly alternatives across product categories. Online shopping took center stage, contributing to Black Friday's growth, as $5.3 billion in sales originated from mobile shopping.

CPG has a new place in holiday shopping carts

Noting an increasing presence of CPG in holiday shopping, it is suggested that consumers are now seeking deals across a broader spectrum of products. The convenience of online retailers like Amazon, Walmart, and Target makes it easy for shoppers to explore and purchase a variety of items simultaneously. In the year 2023, toys claimed the top spot on Amazon, Personal Care dominated Walmart, and Target saw Grocery as the leading product category.

There were also instances where consumers felt misled by retailers, questioning the authenticity of Black Friday deals. Rachel shares, “The consumer is demonstrating that they're extremely price-sensitive; they're even willing to shop at a lower price for slower shipping, and it's a strong indication of where we are in terms of the economy. That's why, if you look at some of these great FMCG brands right now, the top jobs that they're hiring for are in revenue management. That's where the opportunity is to gain margin within their portfolio.”

Retail media is projected to skyrocket

As per Insider Intelligence, retail media ad spend will reach over $100B by 2027. Retail media is emerging as a formidable competitor to traditional search engines like Google. While social commerce becomes a full-funnel platform, search evolves, with Amazon gaining prominence as a go-to search platform for consumers. Over the last two years, there has also been a significant shift within customer bases, with more brands incorporating retail media into their mix models. Retail media has emerged as more than just advertising—it encompasses the total investment brands make with their retail partners, including trades and fines. This shift is reshaping the nature of retail media and prompting brands to reassess their strategies.

Social Media's dominates in Black Friday and Cyber Monday advertising

Insights from MikMak's data reveal that nearly 73 percent of media investments by major brands during Black Friday Cyber Monday went to social media. Rachel emphasized the role of social media as the third shelf for product discovery. While TikTok gained prominence, Meta continues to dominate in direct response bottom-of-the-funnel shopping moments. Meta's seamless integration with major product feeds worldwide makes launching effective ads with a strong cost per acquisition an easy feat.

As the holiday season approaches, the festive spirit is intertwined with the excitement of gift-giving. According to recent data, shoppers are honing in on Apparel and Clothing, with a whopping 75 percent expressing interest. Following closely, Holiday Goods capture the festive spirit with a significant 60 percent. In contrast, Consumer Electronics find themselves at 48 percent, while Home Goods and Furniture trail behind at 39 percent. A noteworthy trend is the rising popularity of Beauty and Personal Care products, resonating with 56 percent of consumers.

Walmart dominates Black Friday and Cyber Monday across multiple categories

In the aftermath of the COVID-19 pandemic, the landscape of consumer behavior has undergone a transformative shift. Drizly and Instacart made it to the top five of the leading retailers during the Black Friday to Cyber Monday period, challenging the conventional dominance of major players like Best Buy. The shift highlights a broader consumer focus on diverse deals rather than a concentrated interest in toys or consumer electronics.

How MikMak simplifies shopping for brands like Reckitt

Talking about the direct-to-consumer trend, Carolyn shares insights from Reckitt's perspective. While DTC was once a focal point for many brands, Carolyn mentions that Reckitt is sunsetting its DTC offerings due to profitability challenges. Instead, they are leveraging technologies like MikMak to turn any ad or site into instant eCommerce, gaining valuable sales insights. She shares that, “Not every brand has direct-to-consumer functionality, not all of our websites have it built in. We did have a vendor who is no longer going to remain in that business. That's why I love MikMak because I can turn any of my websites into eCommerce in a minute.” Caroline also adds, “We love the MikMak relationship, which allows us to turn any ad or site into instant eCommerce, where people can look and see, 'Where can they buy this near me?”

Predictions for 2024

First Party data will become increasingly more challenging as data privacy regulations evolve

“Marketers have realized that it's nearly impossible to collect enough first-party data to reach 300 million American households every day. They understand the value of second and third party data, of which a lot comes from the Retail Partners.” - Rachel Tipograph

Consumers will continue to be cost-conscious in 2024; brand margin pressures will remain

“I definitely think the consumer is going to continue to be cost-conscious, especially if inflation keeps up the rate that it has. Private labels are a threat to every brand that we have, but for us, it's about instilling the value of why our brands. We run promotions, but we also have value messages that we can bring to life, making consumers understand the inherent value in our product even if it may cost more.” - Carolyn Nephew

The “e” from eCommerce will be dropped in the near future, and it will just be “commerce”

“There was a time where digital advertising and advertising were separate, and now you really can't advertise unless digital is part of it. This is just the natural evolution, transcending to the world of Commerce.” - Matt Britton

The webinar also highlights the role of AI in advertising and creative processes. While AI is already making waves behind the scenes, brands are cautious about its application in creative processes due to concerns about copyright and transparency with partners.

This webinar provides a deep dive into the complexities of the 2023 holiday shopping season and offers valuable insights for brands preparing for 2024. The data-driven approach, coupled with the diverse perspectives of the speakers, paints a nuanced picture of consumer behavior, signaling the need for adaptability and strategic planning in the ever-evolving retail landscape. As brands look ahead, these insights will undoubtedly play a crucial role in shaping successful marketing strategies for the coming year. Watch the full webinar here, and equip your brand for a successful journey in 2024.