ClickZ Gifting Newsletter - 10.10.2024

PLUS: The Rise of Micro-Gifting Among Gen Z & Millennials

Author

Marina Mouka
October 10, 2024 • Estimated Reading Time: 7 minutes

Live From Ad Week New York 🎤

ADVERTISING INSIGHTS
✨ Fresh Insights from Adweek 2024

Missed AdWeek 2024 in New York? No worries! Chair of Contentive Lee Arthur attended, capturing fresh insights. Here's a snapshot of what you need to know:

  1. Transition to Profit-Focused Metrics: The shift from traditional ROAS to profit-driven metrics emphasizes the need for DTC marketers to evaluate the true impact of each channel. This aligns with findings from Fospha's latest report, highlighting the importance of optimizing customer acquisition across platforms like Meta, TikTok, and Snapchat.

  2. First-Party Data Utilization: Emphasizing first-party data is crucial for creating personalized advertising experiences. As brands enhance their omnichannel strategies, leveraging this data will be key to delivering consistent messaging across all touchpoints.

  3. Full Funnel Measurement Challenges: Understanding how different channels contribute to conversions is increasingly complex. The insights shared at Adweek emphasize the necessity for sophisticated full funnel measurement tools and strategies.

  4. Platform-Specific Strategies: With unique strengths across platforms, DTC marketers must adapt their approaches accordingly.

Specialty Bites 🍪

Kevin Bacon collaborates with American Greetings to create a personalized video ecard featuring his iconic dance moves and singing. This SmashUp card, inspired by his social media performances, offers over 1,000 customizations. Available online and via apps, it aims to enhance birthday celebrations with humor and nostalgia

Nicole Brayden Gifts has acquired Keep Nature Wild, adding outdoor-inspired apparel and a mission-driven focus to its offerings. Keep Nature Wild commits to environmental stewardship by removing one pound of trash for every product sold. This acquisition targets nature lovers and environmentally conscious consumers, expanding retail opportunities in outdoor and lifestyle markets.

Webinar Wrap 🎧

This week, we attended Fospha's pre-peak webinar on Acquiring Customers Profitably During Peak Period. Here's what we learned:

  1. Competition is hot – so be prepared

With the ad economy rebounding and cross-channel CPA up 13% YoY, brands need to step up. Dan Sava compared Peak Period to the Olympics—each year, competition gets tougher, and brands need to start preparing early to stay competitive.

  1. Go full-funnel to unlock scaling potential in Paid Social

There is still huge headroom for brands to scale Paid Social, but there’s a knack to creating a sustainable approach. A full-funnel strategy. Henry Linney shared how Seraphine boosted returns by investing more in Paid Social Consideration and Awareness, while Dan Sava highlighted Nike’s method of educating customers early to ensure they’re ready to convert by Black Friday.

  1. Don’t ignore TikTok

The panel highlighted the huge value in TikTok’s seamless consumer experience, from discovery to purchase. Dan Sava added, “Most, if not all, brands should try it.”

🎥 Watch the full webinar here!

More Thoughtful Finds 🎁

As you navigate the holiday season, consider the growing trend of gift cards and loyalty programs. Research from Blackhawk Network reveals that consumers plan to allocate half of their holiday budgets to gift cards, a significant increase from last year. This shift is particularly notable among Gen Z and millennials, who are embracing micro gifting and planning to purchase more gift cards than older generations.

You might also find it interesting that loyalty programs are becoming a crucial tool for holiday spending. With inflation still a concern, many consumers are leveraging stored value and loyalty points to maximize their budgets. This strategic approach, combined with the use of AI for deal-finding and gift ideas, highlights a dynamic shift in holiday shopping behavior.

Mud Pie introduces a new Spring/Summer 2025 plush toy collection, featuring over 60 unique characters. Crafted with high-quality materials, these toys are designed for imaginative play and comfort. Priced between $7 and $14, they offer retailers flexibility and value.

Squishmallows and See's Candies are collaborating for a Halloween release on October 5. This partnership introduces a gift set featuring a plush, chocolates, and a themed tote. The collaboration aims to blend Squishmallows' charm with See's iconic treats, enhancing Squishmallows' presence in the consumables market.

Performance Platters 🍽️

Social ad spending targets younger audiences with low-cost products, leveraging platforms for direct-response ads and video formats. Media and entertainment use social media for game installs amid reduced TV spending. Retail and CPG dominate social ad spend, driven by competition from Shein, Temu, and D2C players.

Brands face "deal fatigue" as constant sales events pressure budgets and loyalty. To stand out, they innovate with exclusive products, tiered discounts, and added value like loyalty points. Despite challenges, Prime Day remains crucial. Adaptation is key in navigating this evolving retail landscape, ensuring sustained customer engagement and growth.

Retailers are starting holiday promotions earlier due to inflation and a shorter shopping season. With a focus on budget-friendly options and early deals, marketers aim to capture consumer interest. Enhanced in-store experiences and creative delivery strategies are key to building customer loyalty and adapting to economic challenges.

ClickZ is a Contentive publication in the DTC Ecommerce division