According to a recent consumer survey from Roku Inc. and The Harris Poll, retailers can expect the biggest increase in U.S. holiday shopping in the last four years.
Overall, the study revealed an optimistic sentiment from consumers with 72 percent of respondents saying they believe the economy will improve in the next year. And that optimism is fueling intent to spend. More than a third of shoppers said they plan on spending more this year. Data from the study found consumers expect to spend a record of $937 on holiday purchases this year — an increase of 6 percent year-over-year.
To win these shoppers’ interest, however, the authors of the report said marketers must pay attention to the changing consumer behavior around media consumption. A key aspect of this is the dramatic shift from traditional TV to streaming services as consumers have been increasing time spend watching entertainment during the pandemic.
In fact, the survey revealed that the average U.S. shopper now spends 78 minutes more per week streaming than they did just a year ago. This “always-on” consumer, authors of the report said, makes “streaming a must-have for advertisers this season.”
“Individual spending could hit record levels this holiday season as consumers report significant growth in their holiday spending plans,” said Dan Robbins, vice president of ad marketing and partner solutions at Roku. “As consumers prepare to spend more, they are also changing how they approach gift-giving and how media consumption influences their purchasing decisions. With one out of three consumers unreachable on traditional pay-TV, marketers need to buy TV like they now watch TV to win over consumers this holiday.”
Notably, the survey found that nearly half of shoppers say they have shopped for a product after seeing a TV streaming ad. Moreover, 55 percent of consumers say they rely on TV streaming ads for inspiration when shopping — more than consumers who say they look to reviews to influence purchasing decisions.
At the same time, Millennials came out on top as America’s leading generation for streaming and spending. Nearly a third of Millennial respondents told the companies they are cordless unreachable via pay-TV ad campaigns. And more than any other generation, Millennials said they are planning to spend more than $1,000 on gifts this holiday. This group also said they plan to spend more on themselves than any other age group for an average of $180 — although men across all generations said they plan to spend twice as much on self-gifting than women.
Similar to the 2020 holiday season, Millennials also said they plan to spend more on their pets at an average of $45.
In terms of big-ticket purchases, the report found an increase as consumer confidence has grown with 32 percent of survey respondents saying they plan to purchase items over $500 this season. For 63 percent, these big-ticket items will be electronics.