3 Holiday 2023 Profit Pressures to Prepare For
As the 2023 holiday season approaches, Ovative’s experts are keeping an eye on a few emerging trends that could drastically impact profitability. Overall, we expect to see higher demand for advertising space and, in turn, higher prices for ads. Read on to learn about the three main profit pressures driving these factors—and how you can leverage efficient marketing strategies to combat them.
Market Dynamics Driving Rising Media Costs
An increase in media costs will make it challenging for retailers to remain profitable this holiday season. But why the increase?
- Increased Advertising Spending: Advertisers historically spend more to capture heightened demand during the holidays. If that demand keeps increasing, we’ll continue to see media costs rise, particularly during Cyber 5.
- Flat Media Usage: Consumers’ time spent with media is projected to remain relatively flat throughout the season, meaning we can expect to see increased competition for attention.
- 2024 Election: The 2024 election is expected to drive record ad spend. Early primary ads will most likely increase competition and heighten media costs in certain geographical areas.
Take the Pressure Off with Effective Marketing Strategies
The pressure is on, and not just from the media side. Inflationary pressures will drive consumers to seek out steeper discounts than in previous years in order to make their holiday budgets stretch further. Combined with increased media costs, this behavior will make it even more important for brands to spend their marketing dollars in their most efficient and effective channels.
Despite these factors, there’s still plenty of opportunity to drive profitable revenue this holiday season with a robust marketing program. Leveraging the right channels and continually monitoring and optimizing media performance can help you capture demand throughout the season. Interested in learning which channels will provide the most return this holiday season? Check out our Holiday 2023 EMR Power Rankings.
Reach out to learn how Ovative can help optimize your marketing strategies for Holiday 2023 and beyond.