Research from Fiverr has revealed that more than half (54 percent) of Australian retailers are investing more in social media advertising in the lead up to Christmas.
Fiverr’s community organiser Oliver Woolrych connects with freelancers on the platform, supporting them through education and inspiration. Woolrych says he is a huge advocate for the community and is trying to understand more about what kind of role it can play in the tech industry and on a global scale.
So why are retailers leaning towards spending more money on social media before Christmas?
Woolrych explains that spending in the lead up to Christmas shopping has stretched over the last couple of years. He says that shopping begins in November for Australian retailers as consumers are now taking advantage of Black Friday sales, with more Aussies leaning towards online shopping for Christmas.
According to Woolrych, “Australian retailers are feeling optimistic about the 2022 shopping season and are investing in social media advertising for Christmas to engage and build connections with customers, simultaneously ensuring their customers have the best shopping experience”.
“Social media activity typically surges during the holiday season, as retailers showcase their best sellers and products, and consumers search for the best gifts that are within their budgets that they can obtain. Therefore it makes sense for retailers to increase brand presence and consumer engagement during the holiday season.”
He outlines that social media-related services on the platform have seen increased demand, suggesting that business leaders are eager to increase awareness on these channels to draw in customers and drive the path to purchase.
The benefits of using social media for advertising
Social media has transformed advertising and brought about many benefits.
“The cost of a results-driven social media campaign pays out in dividends,” Woolrych says.
Research from Fiverr indicates that 39 percent of Australian retailers anticipate a key challenge of this shopping season, in competition with large online retailers, will be “getting in front of their competitors’ audiences”, says Woolrych. And doing so “is a wise investment”.
“Some global e-retailers have massive budgets that they’re able to allocate to large scale marketing and advertising campaigns, whereas smaller Australian retailers have to spend wisely, and social media is a key way to target particular groups of consumers based on their shopping habits and locations,” he adds.
The cost of living is rising. Why are retail managers planning to offer steeper Christmas discounts compared with last year?
Woolrych outlines that Fiverr’s data has shown that businesses are shifting their strategy to increase resilience by preparing early and considering new ways to engage customers.
“With inflationary pressures and interest rates set to weaken consumer spending, this seems like a viable strategy to ensure that businesses sustain interest over the holiday period, retain their customer base and revenue, while doing their part to off-set the increasing cost of living,” he says.
However, he says the strategy is not risk free, as it has the ability to impact revenue while operating costs stabilise or increase.
“With this in mind, it makes sense for retailers to utilise freelance talent across marketing, design and social media to remain competitive – and we know that these are some of the most popular skills on the platform,” he says.
Even as inflation anxiety hits Australians, the retail space will continue to see a seasonal spike. Woolrych explains that Australians are looking for new ways to save and be thrifty by searching for the best deals, buying smaller or cheaper gifts with a stricter budget for holiday shopping.
“The general consensus is that the global recession is heading our way, but Australians remain optimistic and feel that they won’t be affected as greatly as the other major global economies,” he says.