Does Holiday Ad Spend Pay Off? (And Early Indicators from Skai)

As we publish this, Black Friday is less than 48 hours away. Although data shows that people are now taking advantage of year-round sale days, the next week is still considered a “big boost” time for many MULO (multi-location) brands and the agencies that buy their media.

According to up-to-the-minute ad buying data from advertising platform Skai:

• Spending across retail media grew 28% last week, with paid social and paid search spending up 13% and 6%, respectively.
• Compared to four weeks ago, retail media once again saw the largest increase, growing overall expenditures by 53%, followed by social spending increasing 31% and search jumping 23%.
• One big factor in retail media growth has been Amazon’s emphasis on a full week of Black Friday deals. When retail media spending is isolated, you can see a 48% jump in spending across Amazon search and DSP from November 20th to the 21st.

The holiday seasons seem to have moved earlier on the calendar, and buying seasons are no longer connected just to the major festivities. For example, the release of “Wicked” created opportunities for brands, marketers, and media to jump on the wagon (or broomstick) to generate excitement and sales.

The media buyer of the past is now a mere skeleton, as more sophisticated automation and instant results reporting are infiltrating the decision-making and buying process. With the assistance of AI, split-second decisions on digital and even OOH (out-of-home) spending can be made.

Like Santa’s elves and reindeer, AI will not replace humans but simply enable them to do their jobs faster and smarter. This will prevent brands from making major spending gaffes and blowing through their budgets before the season ends.

And, Amazon is the “Rudolph” of the ad spending ecosystem, with other marketers racing to compete with their deals and budgets.

This may ultimately have a huge impact on annual campaign budgets. Whereas in the “old media days,” buyers had to take a set-it-and-forget-it approach to ad spending, marketers can now adjust their spends based on what and where people are buying (and traveling).

The coal in the stocking may be that marketers need to be on duty throughout the holiday season to monitor and manage these decisions.

So, watch this space throughout the holiday season (even if you’re relaxing on the beach) to learn about how MULO results during the “most magical time of the year” may impact 2025 spending plans!