—Brands need to be especially understanding of cautious Canadians’ concerns if they want to win the holiday shopping season, says Wavemaker's Nikki Stone—
The all-important holiday season is already upon us, a critical time for brands to invest and engage with new potential customers.
However, with the uncertainty surrounding our economy, Canadians are feeling cautious about opening their wallets, and for whom, during this season of giving.
The message is clear: Canadian shoppers want bang for their buck, and for marketers, timing is what will win that incremental share.
Uncertainty in the moment: According to our social listening tool Wavemaker Listens, overall sentiment among Canadians regarding the economy heading into November skewed negative (62% of posts). As Canadians continue to worry about a looming recession and the rising cost of living, they want to save, and save early, this holiday season. Analysts are predicting that Canadian consumers are planning to spend an average of $1,347 this holiday season, down 11% from 2022. With cautious Canadians, brands need to have strong messaging that balances value for money and emotional connection, since consumers tend to seek familiarity and comfort during uncertain times.
Savvy shopping straight ahead: Known for being savvy shoppers who carefully research and compare prices before making purchase decisions, Canadians are ensuring they get the most value for their money. According to Vividata, 82% of Canadians have researched online prior to purchasing. Marketers should amp up those search budgets, because it's a key spot to win before the shopper gets into the store.
Holiday shopping starts earlier than ever before: To further increase the likelihood of winning such a key shopping period, marketers and their agencies must recognize that consumers are looking for free shipping, promotions, bundles, value items, and on-sale items. Once a U.S. phenomenon, Black Friday has also become an important day for Canadian consumers. Recent data suggests that consumers are purchasing early versus the historical sales of boxing day – in fact 40% of Canadians say they plan to shop Black Friday deals this year, versus 28% last year.
But the time to reflect and invest wisely is now. As customers reappraise their purchasing habits and make more discerning choices, be sure your brands are primed to win.
Here are three ways to consider refining your spend leading into this holiday season.
- Capitalize on connecting consumer journeys through digital out of home. Quality digital inventory is more widely available across the country in major and minor metros, and we have seen that outdoor can be effective not only at driving brand recognition, but also at supporting immediate action to drive sales in proximity to purchase locations—and can be tailored and targeted to key audiences and geographies.
- Similarly, addressable video can be a cost-effective way to reach your audiences in the big screen television environment, where every impression counts. Messaging can be personalized and at scale, so different products and themes can be tested quickly for feedback, and optimized according to the consumer response.
- Finally, ensure your digital shelves are also stocked to capture an increased share of demand in the search space. Consider, too, that search goes beyond Googling, and that retail and commerce platforms and social media are often first entry points when potential buyers are searching for information and content, as it suits their browsing behaviour.
No matter the category, marketers need to be conscious that consumer caution demands a more prescriptive approach with messaging that addresses these concerns at defined moments of receptivity—well before we are used to thinking about the holidays.
Nikki Stone is the CEO at Wavemaker Canada.
