Today's shoppers are increasingly deliberate, with U.S. impulse buys decreasing from 30% to 26% last year as consumers prioritize research and budgeting. This shift has transformed the holiday season into a three-month event, prompting retailers to adapt their strategies.
Connecting with Customers
To engage modern customers, advertisers should leverage Google's AI-powered tools. With over 5 trillion searches annually, shopping queries are evolving to focus on broad intent using conversational phrases. AI in Search facilitates complex inquiries, providing helpful responses and relevant ads. For instance, when users ask about low water pressure after a sink installation, AI Overviews can offer solutions and ads for local plumbers. The new AI Max for Search campaigns feature is now available in beta to help advertisers navigate these discovery paths.
Engaging YouTube Viewers
As shopping increasingly occurs on YouTube, reaching omnichannel customers requires more than website clicks. Omnichannel offerings in Demand Gen can optimize for total sales across platforms. Local offers can highlight in-store promotions for nearby shoppers. The Creator partnerships hub enables brands to collaborate with trusted creators, enhancing customer loyalty. Additionally, the YouTube Masthead has become shoppable, allowing brands to feature products aligned with their goals.
Enhancing Performance with Smarter Tools
To drive performance, Google is introducing new tools that provide insights, creative options, and effective budgeting. The Google Merchant Center will offer AI-driven insights to help retailers adapt to demand shifts. Product Studio will enhance product presentation, allowing for scalable scene changes and video integration. Upcoming generative AI tools in Asset Studio and asset generation in Performance Max and Demand Gen will further support advertisers. Campaign total budgets are also expanding to include various campaign types, enabling better budget management during peak shopping periods.
Building Brand Loyalty
Customers now expect personalized shopping experiences, particularly regarding loyalty programs. New loyalty offerings allow retailers to showcase member-only benefits and set retention goals in Performance Max or Standard Shopping campaigns. Brands like Sephora are already experiencing success with these strategies.
By adopting these tools and strategies, retailers can effectively meet customer needs and maximize the holiday shopping season.
