By 2023, the market for programmatic advertising is expected to reach $147 billion, a 33% increase from the year before. There has been increased global spending on digital advertising as companies realize its benefits and power to reach target audiences. In particular, the months leading up to the holidays have many companies investing more into marketing to capitalize on the commercialism of the 4th quarter of the year. Competition surrounding advertising is high during this time and ad budgets increase to accommodate the changing trends.
During the holidays, customers are generally more likely to see the ads you publish. Everything from click through rates to ad impressions increase and if marketed correctly, your advertisements can stand out from the crowd. According to yourdigitalresource.com, direct traffic increases by 150% and the average value of an order increases by 30%. People are more likely to spend money during this time because psychologically, the holidays are seen as a time for new purchases and gift-giving. If utilized carefully, this can be a major positive for many companies seeking to grow over the holiday season as customers’ spending mentality changes.
Another factor to consider is that holiday spending seems to occur earlier each year. In 2022, Target began its Black Friday sales as early as October 9th, despite the official day for Black Friday not taking place until the end of November. Companies want to make the most of this time and cater towards any advertising that would generate the best benefit for them. In the graph below, we see how retail spending slowly increased in 2021 as the market entered the holiday season and peaked in the days surrounding Black Friday. They dip down more significantly again after Christmas day on December 25th:
From a market perspective, the holidays are an exciting time to promote deals and new products. Because they are so widely used, many companies choose to advertise on mobile platforms. As of 2022, marketers allocate 51% of their budget towards mobile advertisements. Spending on mobile internet advertising on a worldwide scale has grown to nearly 400 billion US dollars in 2022 from 341.18 billion in 2021. The below visual details how this number has changed in recent years and how it is expected to continue growing:
Every year, the holiday season presents exciting opportunities for advertisers. Spending increases as customers are more likely to see advertisements and make seasonal purchases. Many companies utilize programmatic advertising to maximize impact, efficiency, and profit in the 4th quarter of the year. By automating certain processes, it can be easier to measure campaign performance as well as benefit from the insights that will optimize ad buying. The holidays present a powerful opportunity to generate profit but similarly offer challenges as companies seek to outcompete each other. To accommodate the changing trends, advertisers turn to new technologies to win the market and gain insight into their performance.