How retailers are leaning into deals in their holiday ads

Instead of shouting “Ho, Ho, Ho,” this holiday season, retailers are yelling “Deals, Deals, Deals.” The critical selling period of November and December is fraught with financial uncertainty this year as shoppers battle a host of economic pressures. “We all recognize there are some headwinds that are impacting consumers and they’ll continue to play a role in the final months of this year,” said Matthew Shay, CEO and president of the National Retail Federation, speaking on a recent call discussing the industry trade group’s holiday sales forecast. He cited pressures such as gas prices, inflation, the return of student loan payments, the threat of a government shutdown and geopolitical issues as affecting consumer spending. More news: How Domino’s is marketing to student loan borrowers To that end, the NRF expects holiday spending from Nov. 1 to Dec. 31 to be more tempered than in holidays of yore. This year, the group is forecasting that holiday sales will rise between 3% and 4% to between $957.3 billion and $966.6 billion. This compares with last year’s more robust 5.4% holiday sales rise. “We know they’ll be out there engaged in commerce—spending money, powering the economy, and when they’re doing so they’ll be looking for deals and discounts,” said Shay. “They’ll be finding ways to make the most out of their monthly paycheck.” Retailers have prepared appropriate holiday marketing messaging to respond to such demands. While some, such as Amazon, which released a touching spot of three older friends going sledding, are still leaning into the emotional cadence of the season, the majority of marketers are pushing promotional messaging in the majority of their advertising. Target, Best Buy and Kohl’s are all emphasizing value in spots. Even Etsy, which took a more narrative-driven approach with its “Mission: Impossible”-themed holiday ads than larger mass-market rivals, still notes pricing, with the line “Personalized gifts, under $50,” in one spot. More of the latest retail and e-commerce news from Ad Age “Consumer confidence has been up and down, but we know that people’s wallets are stretched so we’re leaning into that,” said Jennie Weber, who was promoted to chief marketing officer at Best Buy earlier this year. “The holiday spots lean into making sure that customers know when to shop and that we’ve got great deals—we want them to feel confident they’re getting the best deal no matter when they shop with us.” Below, Ad Age compiled a list of some of the season’s biggest retailer campaigns. Target Target typically highlights the value of its offerings and this year is no exception. The Minneapolis-based retailer, which has seen sales sputter in recent months as consumers pull back on spending, began airing its campaign on Nov. 1. Called “However You Holiday, Do It For Less,” the push, created with Target’s internal studio and Mother, promotes items costing under $25, such as holiday lights. Ads will appear on TV, video, audio and social media in both English and Spanish. In total, the campaign includes over 100 videos in 30-, 15- and 6-second lengths. As in previous holidays, Target also includes a remixed version of a classic song—this year’s hit is Faith Evans’ “Love Like This,” performed by Rosemarie. The chain is also hosting “Target Wonderland: Bullseye’s Top Toy Adventure,” shopping events in New York, Dallas and Los Angeles in November and December. Kohl’s Like last year, Kohl’s is again emphasizing products and promotions in its holiday spot, its second with Chandelier Creative. A peppy 30-second video, full of holiday favorites such as family pajamas, sparkly garland and oven-roasted turkey, began running Oct. 30 on linear TV and expanded to all channels by Nov. 1. “Gifts, deals and holiday feels,” reads text at the end of the commercial, which is set to “Best of My Love,” a holiday favorite tune recently used by rival Target in 2021. The retailer has also redesigned the front of its stores to push more seasonal curated merchandise and has made 25% of its toy selection exclusive to Kohl’s. Most of its newly expanded home décor items are purposely priced under $30 to appeal to cash-strapped shoppers. Kohl’s also plans to run Black Friday “Early Access” events with special deals and promotions this month. Bed Bath & Beyond Just in time for the busy shopping season, Bed Bath & Beyond has emerged from bankruptcy (revived and bought by Overstock) with a holiday marketing campaign celebrating its return. A 60-second video, the first with new creative agency partner Arts & Letters, gives a starring role to the brand’s famous blue and white 20% off coupon, and touts several shopping categories including holiday. The campaign also includes ads in cinema and out-of-home billboards in New York in November and taxi toppers in December. JCPenney In its first holiday report, in which it surveyed shoppers in September, JCPenney found that consumers are tightening their purse strings. The retailer reported that 50% of Americans said they will make “tradeoffs to afford the holidays,” with 22% planning to take on debt, borrow or take on a loan for the season’s purchases. In addition, 73% of consumers are on a budget this year, the report found. To that end, JCPenney’s holiday campaign, “Make Your Holidays Count,” is meant to spotlight the value the chain provides. “We love helping your family make every single gift special, every precious moment matter, and every hard-earned dollar count,” a voiceover for the 60-second spot says. Like its rivals, the retailer is hosting early November deals to court early shoppers and will highlight gifts starting at $15. JCPenney will also host a “Penny Prepper Challenge” with celebrity Tia Mowry with tips for hosting the holidays for under $300. The campaign was created internally. Michaels The craft retailer is continuing its new branding introduced over the summer with a series of holiday spots created with new AOR OKRP. Each spot highlights a different consumer story, such as Ian, who is eager to win an Ugly Sweater Contest with his own creation, or Stella, who longs to create a one-of-a-kind Christmas tree. Michaels recently released its décor collections, including disco-themed, Winter Cottage, Snowfall, and Peppermint Lane, with products starting at $5.99. Etsy The craft marketplace typically leans into narratives for its holiday campaigns and this year is no exception. However, the Brooklyn, New York-based marketer, which worked with new agency Orchard on the campaign, does nevertheless emphasize price in some of its holiday spots. For example, one 30-second spot shows a man searching for the perfect gift for his niece. He finds a personalized jean jacket on Etsy, and the spot concludes with a voiceover: “Personalized gifts under $50. Etsy has it.” Best Buy Earlier this month, the electronics retailer announced holiday plans that include its first livestream shopping events as well as a series of videos pushing deals. The campaign, which was created internally, includes a 30-second video showing the lengths office workers will go to in order to hide their online shopping during work hours. Each shopper is shown searching for holiday deals on hot items like headphones, laptops and espresso makers. “Get Black Friday Deals right now at Best Buy,” a voiceover says. Walmart The retailer turned heads—by turning the clock back to 2004 with a cinematic Black Friday spot earlier this month that reunited much of the cast of “Mean Girls,” including Lindsay Lohan, Amanda Seyfried and Lacey Chabert. The two-minute video touts Walmart’s early Black Friday deals on Levi’s jeans, Roku TVs and Teenage Mutant Ninja Turtles toys. Nostalgia-themed holiday is nothing new for the retailer. Last year, Walmart tapped into “Office Space,” another comedic classic. Amazon Unlike the majority of its retail rivals, Amazon pursued an emotional story this year for its holiday spot, in keeping with its previous efforts for this time of year. This year’s spot, which was created internally, tells a simple story of three older friends and their use of Amazon to reignite the joy of seasons past without actually saying a word. The delightful video differentiates Amazon from the deals-driven, price tag-laden marketing of other retailers. Sam’s Club Sam’s Club also went a more simplistic route with a 30-second spot that depicts how the happiness of family togetherness for the holidays is an actual gift. The work is the Walmart-owned chain’s first holiday push from Havas’ Arnold, which won the Sam’s Club account in May. Ad Age World’s Largest Advertisers 2023 Ad spending, rankings and analysis for the top 100 advertisers Click here

How retailers are leaning into deals in their holiday ads

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