Millennials and Gen Z to Spend More this Holiday Season

As much as 34% of consumers in this age group plan to increase their spending. That’s compared to 27% of those ages 36-55 and 11% of those 55 and older in the U.S. Older adults in the U.S. are more likely to keep the same spending habits. 

The report surveyed more than 8,000 consumers worldwide, including in the U.S., U.K., Australia, Germany, France, Italy, Spain and Israel. As the holiday season approaches, consumers ranked speed of delivery as a top priority, with 52% of consumers globally indicating it is the top influencer in their purchase decisions. Another 38% valued discounted/free shipping as a top influencer. 

Online shopping, which surged in 2020 as the COVID-19 pandemic impacted consumers and the retail industry with store closures, is expected to remain elevated during the 2021 holiday season. More than half––55%––of U.S. consumers plan to shop online and in-person during the season, and 36% plan to shop online. 

Shoppers are also driven by brands when it comes to making purchases, with 54% valuing brand accessibility/availability, followed by sustainability (47%) and brands that support local businesses (43%). On advertising, 45% of global consumers said swipeable ads were the most engaging type of ads when shopping online.

"These findings are ultimately a growth playbook for retailers and other DTC brands as we head into the busiest time of the year," Ayal Steiner, vice president of global ad revenue at Outbrain, said in a statement. "The results help us and our partners hone in on high-value customer segments, understand the ad experiences that have the best impact such as video and carousel, and refine messaging to target consumer needs such as speed of delivery.”

In addition, consumers are more likely to shop outside their market this holiday season, as 71% of consumers purchased items outside their home markets in the last year. More than half––57%––of consumers plan their Black Friday shopping only a week or two before.