Microsoft Releases 2024 Holiday Marketing Playbook for Advertisers

Microsoft Advertising this week unveiled its Holiday Season Marketing Playbook 2024, providing advertisers with data-driven insights and strategies for the upcoming festive shopping period. The comprehensive guide, developed through extensive research by Microsoft teams in the US, UK, and Australia, aims to help marketers navigate evolving consumer behaviors and optimize their digital advertising campaigns.

According to the playbook, retailers are launching promotional calendars earlier this year, with search volumes shifting from December to October. The report indicates that 90% of holiday conversions occur outside the traditional "Cyber 5" period between Thanksgiving and Cyber Monday, at more efficient cost-per-clicks.

Microsoft's research reveals that the average holiday shopper takes 47 days to complete their purchase journey, searching 17 times and clicking 12 times before converting. The playbook emphasizes the importance of early campaign launches, recommending that advertisers begin their holiday advertising efforts as early as September or early October.

The report highlights several key consumer trends:

1. Price consciousness remains a significant factor, with search being used as a primary tool for finding the best deals. Different generations leverage search in varying ways, with Gen Z focusing on finding new retailers and best prices, while Baby Boomers prioritize product research.
2. In-store shopping is experiencing a resurgence, particularly among millennials seeking tangible experiences. However, the majority of consumers plan to combine both in-store and online shopping experiences.
3. Self-gifting is on the rise, with accessories, self-care products, and trending apparel topping the list of personal indulgences. This trend is particularly strong among Gen Z and Millennials. Reported as well by TikTok.
4. Values-based gifting is gaining traction, with approximately a quarter of shoppers opting for sustainable, eco-friendly, and cause-oriented presents. The playbook notes that over half of these consumers plan to make values-based purchases again in the future.
5. Brand familiarity has increased in importance for consumers during major shopping events like Black Friday, compared to previous years.

The playbook offers specific recommendations for advertisers, including:

• Utilizing Microsoft's Performance Max (PMAX) campaign offering, which the company claims can achieve 2.6 times more site visits and 4.2 times more conversions compared to standard campaigns.
• Implementing In-market audiences to expand reach and connect with ideal consumers, as the report suggests these shoppers spend 13% more on average during the holiday season.
• Leveraging multimedia ads, which Microsoft states can lead to up to a 200% increase in return on ad spend compared to standard text ads.
• Using the Google Import tool to easily create and automatically sync campaigns from Google Ads to Microsoft Advertising, potentially saving time and improving performance.

Microsoft Advertising emphasizes the importance of strategic ad type flighting to maximize conversions throughout the holiday season. The playbook includes a detailed checklist to guide advertisers in identifying and implementing various Microsoft Advertising products and strategies.

The company also announces virtual festive holiday season events available on-demand for advertisers seeking additional insights and strategies for the upcoming shopping season.

Key facts

• 57% of shoppers in the United States plan to explore discount retailers
• 95% of consumers still plan to shop in-store for holiday gifts
• Mobile accounted for 16% of total Retail and CPG spend during the previous holiday season
• 22% of converting paths included Mobile at some stage of the user journey
• Brand familiarity matters more for Black Friday shopping compared to last year