A recent study conducted by the open web recommendations platform, Outbrain reveals 39 per cent of Australian consumers aged between 18-35 will increase their budgets this upcoming holiday season, the most of any age group.
The increase in budgets for Gen Z and Millennials is largely driven by the convenience of online shopping and the ability to avoid COVID-19 by going digital.
Outbrain spoke to more than 8,000 consumers globally for their Consumer Insights for the 2021 Holiday Shopping Season survey, which found that discounted or free delivery has now topped the list of consumer expectations and purchase drivers. Notably, it found that more Australians were likely to engage with ad material that was trustworthy (59 per cent) and had met individual personal interest (66 per cent).
Australian figures suggest the desire for speed of delivery is also especially important, with 52 per cent of consumers ranking it highly in their purchase decisions. In contrast, 40 per cent of respondents value free/discounted shipping.
The study also revealed that Australians are continuing to be driven by certain brand values:
- 61 per cent valuing brand accessibility/availability.
- 42 per cent value sustainability
- 53 per cent value brands that support local businesses
With eCommerce fundamentally transforming consumers’ buying experience this holiday season, Marketers should identify key digital tactics that can turn browsers into buyers.
Nationally, Australians are finding more products through online search (56. per cent) than TV ads and in-store (43 per cent) and were likely to purchase more frequently from recommendations made by friends and family members (45 per cent). It was also found that 44 per cent of Australians found swipeable gallery images to be the most engaging type of ad while browsing online for a product.
Additional highlights from the study included:
- Australians are expected to increase their online spending over the next six months on Fashion (53 per cent), Food (33 per cent), Entertainment (53 per cent), Beauty (40 per cent) and CPG (Consumer Packaged Goods at 35 per cent).
- Australian men (66 per cent) were more likely to watch videos prior to making a purchase as opposed to women who preferred to read more on product information (58 per cent).
- Millennials and Gen Z were more likely to spend time daily online shopping (73 per cent) as opposed to those above aged 56+ (13 per cent).
- The three main benefits of online shopping were convenience (24 per cent), 24/7 availability (23 per cent) and the ability to avoid COVID-19 (21 per cent).
- 69 per cent of consumers prefer having information about a brand before they make a purchase.
- The two considerations Australians do before purchasing a gift is:
- (1) Compare price and policies (51 per cent)
- (2) Ask friends or families for ideas (49 per cent)
Ayal Steiner, VP, global ad revenue at Outbrain, said: “These findings are ultimately a growth playbook for retailers and other DTC brands as we head into the busiest time of the year.
“The results help us and our partners hone in on high-value customer segments, understand the ad experiences that have the best impact such as video and carousel, and refine messaging to target consumer needs such as speed of delivery.
“There is a real opportunity to break boundaries and target customers online and in-store. Brands need to take advantage of efficient pricing in October and November to cultivate their audience and drive brand consideration in advance of key holiday shopping periods.”
Andy Burke, managing director APAC, said: “With the ongoing pandemic having a direct impact on the overall shopping experience, it would be beneficial for brands and retailers to strategically look at how to engage and appeal to their Australian audiences this upcoming holiday season.
“Our research and data show a unique and in-depth insight to the purchasing habits and mindset of the everyday Australian consumer.
“Trends across customer segments show the major drivers, preferences and expectations for each category and by appealing to this we can potentially allow for increased returns and brand awareness opportunities”.
