Consumers’ Black Friday Spend Forecast to Hit $158 Billion
Future Finds Three-Quarters of Shoppers Plan to Take Advantage of Black Friday Deals Despite Cutting Costs Elsewhere
76% of US consumers plan to shop for deals on Black Friday, according to a new in-depth consumer behavior study from leading digital publisher Future Publishing, and the results suggest that shoppers plan to spend roughly $158 billion during Black Friday. While the data indicates that inflation and economic challenges are leading consumers to cut back on dining out and subscriptions, there is cause for optimism for retailers and advertisers however, given other consumer behaviors highlighted in the study.
The research highlights that the impact of rising costs has driven consumers to seek out deals and buy gifts earlier to beat price hikes, with 45% already starting their holiday gift purchases. Shoppers however, do want brands to engage with the joy of the upcoming holiday spirit, with 71% wanting festive ads earlier or no later than usual, suggesting that brands very much have permission to engage with consumers around the holidays.
The research gives key insights into how consumers want brands to address this period of financial uncertainty. Almost half of shoppers (42%) expect brands to meet them halfway by reducing prices to encourage sales. But importantly, a third of consumers want to see their brand loyalty rewarded and a third also want brands to be giving back, either in the form of charitable donations or supporting causes.
Among the key findings:
- Half of shoppers (50%) list rising costs and inflation as one of their top three concerns.
- 81% have begun to make financial cutbacks and are making savings mostly by no longer dining out (50%) and reducing subscriptions (40%).
- Despite this, approximately three-quarters of shoppers are planning to spend more or similarly this Black Friday.
- Shopper budgets remain significant, with average budgets of $574 for Black Friday deals and $735 for holiday gifting.
- The Future audience will spend significantly more during their Black Friday (+52%) and holiday (+29%) than the average shopper.
- This Black Friday, the tech products consumers are most looking for deals on are televisions (32%), smartphones (31%), and games (28%).
- There is an opportunity for brands and how they reach more price-conscious shoppers: 94% of respondents will be turning to expert content online to seek help navigating rising costs, 56% of respondents want to know where to get a good deal, and 40% want expert product reviews to get the exact product for their needs.
90% of Future’s audience is planning to spend on Black Friday according to the research, which was based on a survey of 2,676 holiday shoppers – all recruited independently via Future’s research platform, The Lens. The survey included more than 50 in-depth questions about rising inflation, savings, shopping, Black Friday, and holiday gifting.
“Black Friday and the holidays are two strong anchor points in the calendar that seem increasingly non-negotiable in terms of engagement and involvement among consumers despite rising inflation. Our research shows, however, that shoppers will spend wisely during this time, carefully seeking out valuable advice through online content to get the best deals. Through this research, Future can see there is clear purchase intent amongst our audience base. We can supply advertisers with the first party data targeting they need to connect with audiences ahead of this year’s biggest retail events,” said Zack Sullivan, Chief Revenue Officer at Future.
Future had already prepared for changing consumer purchase habits by making changes to its sites and content to enhance the experience for audiences and advertisers. To enhance consumers’ online shopping experience, Future has embedded its eCommerce price comparison widget across all Buying Guides and Deals pages so shoppers can instantly find the best product at the best price from a choice of retailers. And for advertisers, Future rolled out impactful video advertising across its Buying Guide pages in order for advertisers to connect easily with their most “ready to buy” audiences.