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Black Friday 2024 has come and gone, and the results are in: online shopping hit new heights, in-store traffic saw some challenges, and consumers sent a clear message about how and where they want to spend their money. Understanding these trends is essential for sales and marketing professionals to stay ahead in an ever-evolving retail landscape. Here’s a breakdown of Black Friday’s winners, losers, and lessons for the future.
Online sales set records, while in-store traffic struggles
If one word could sum up Black Friday 2024, it’s online. US consumers spent a record $10.8 billion online on Black Friday alone—a 10% increase from 2023. This marks a significant milestone, with mobile devices accounting for over half of all purchases. Adobe Analytics revealed that categories like toys saw a staggering 622% boost in online sales, reflecting a clear demand for holiday deals. This growth underscores the importance of optimizing the online shopping experience for brands and agencies. Mobile-first strategies, seamless checkout processes, and compelling digital ad campaigns are no longer optional — they’re table stakes.
While online sales soared, in-store shopping took a hit. Foot traffic was down 8%, and while in-store sales saw a slight bump of 0.7%, it’s clear that physical retail faces an uphill battle. Shoppers are increasingly turning to the convenience of e-commerce, leaving brands to rethink the role of their brick-and-mortar locations. The takeaway? Physical stores need to deliver experiences that can’t be replicated online. Think exclusive events, in-store-only promotions, or experiential elements that draw customers in.
What’s driving spending? Deals, not sentiment
Consumers weren’t necessarily feeling more generous this year; they were deal-driven. According to PYMNTS, shoppers came out for the sales, not because of a spike in consumer confidence or sentiment. The proof is in the numbers: deep discounts on electronics, apparel, and home goods were key drivers of the spending surge. Sales and marketing leaders should take note: price perception remains king. Strategic discounting and value-driven messaging can make or break a campaign.
Artificial intelligence also played a pivotal role in shaping this year’s shopping season. From chatbots guiding purchase decisions to personalized product recommendations, AI was behind the scenes boosting sales. Retailers using AI reported a 9% higher conversion rate, demonstrating its effectiveness in closing deals. Buy Now, Pay Later (BNPL) also saw increased adoption, with spending through these services growing by 8.8% year-over-year. Flexible payment options are clearly a priority for consumers, especially for high-ticket items.
This means it’s time to double down on personalization and flexibility. Whether it’s leveraging AI for more targeted campaigns or highlighting BNPL options in your messaging, the data speaks for itself.
Key takeaways for sales and marketing leaders:
- Lean into digital: With online sales dominating, a strong e-commerce presence is non-negotiable. Optimize for mobile, invest in performance marketing, and make the online experience seamless.
- Rethink brick-and-mortar: The in-store experience needs to stand out. Use physical locations to create memorable, exclusive events that attract customers beyond just product offerings.
- Price matters: Black Friday reminded us that consumers are deal-driven. Make discounts strategic and targeted to maximize impact without cutting too deep into margins.
- Invest in tech: AI and BNPL are here to stay. Brands that adopt these technologies will enhance the customer experience and drive higher conversions.
As we gear up for the rest of the holiday season, Black Friday 2024 offers plenty of insights for brands and agencies looking to capitalize on evolving consumer behaviors. The message is clear: meet your audience where they are, whether that’s online, in-store, or somewhere in between—and give them an experience they won’t forget.