By Upp.ai
Black Friday 2024 has come and gone, marking the pinnacle of the Golden Quarter and setting the tone for the rest of the holiday season.
The journey to this retail extravaganza was shaped by months of preparation and anticipation, fuelled by shifting consumer confidence, evolving shopping behaviours, and innovative approaches to digital campaigns.
Now, with the numbers in, we can reflect on how this year’s event unfolded and what lessons it offers for the weeks ahead.
Consumer Confidence and the Drive for Value
As Black Friday approached, economic signals painted a mixed picture. Inflation had eased to near the Bank of England’s 2% target, interest rates were cut, and wages had risen—all contributing to the highest consumer sentiment levels since 2021.
Yet, caution lingered. Rising energy prices, high services inflation, and financial strain from mortgage renewals tempered spending enthusiasm.
Shoppers were selective but ready to spend, particularly when offered strong promotions. Data showed that 52% relied on Black Friday deals more than usual due to financial concerns, making early and strategic discounting a critical lever for retailers.
The Black Friday Shopping Window
Black Friday is no longer confined to a single day. This year, its influence stretched from October’s Amazon Prime Big Deal Days through to Cyber Week and beyond.
Pre-event insights revealed that 61% of consumers began deal hunting in October, underscoring the importance of early campaigns to capture demand.
Retailers who extended their promotions capitalised on this momentum, creating cohesive narratives that carried shoppers from Halloween through the holiday season.
Black Friday also confirmed its growing role as a starting point for holiday gifting, with 84% of purchases tied to Christmas gifts and other festive needs.
Harnessing the Power of AI for Black Friday
This year marked a turning point for AI-driven campaign management. Many retailers using tools like Google’s Performance Max (PMax) experienced a more streamlined and impactful approach to digital advertising.
Retailers embraced campaigned that allowed them to adapt dynamically to changing customer behaviours. They worked in real time, reallocating budgets, fine-tuning product visibility, and optimising targeting based on data signals such as payday surges and high-intent searches during Black Friday week.
For plenty of businesses that embraced this hands-off strategy, the results were striking. Brands that we worked with saw up to a 110% uplift in revenue compared to 2023 and a significant increase in ROAS, demonstrating the value of AI in campaigns.
The Balance Between Online and In-Store
Although Black Friday remains an online-first event, in-store shopping has continued to grow since 2021.
This year, 45% of spending happened offline as retailers leaned into the physical experience. Stores that turned their spaces into destinations—complete with exclusive deals and immersive events—stood out, proving that brick-and-mortar can complement digital strategies effectively.
Online, competition was fierce. Retailers who succeeded tended to prioritise visibility in the Google Shopping carousel by optimising product listings with competitive pricing, compelling imagery, and clear delivery options. Those who neglected these elements risked being overshadowed by savvier competitors.
Reflections and Lessons Learned
Black Friday 2024 offered a mix of expected trends and surprising outcomes, highlighting several key takeaways for retailers:
- Early Engagement Matters: Shoppers started looking for deals well before Black Friday. Many retailers who launched promotions early and sustained them saw stronger results.
- AI is a Game-Changer: Stepping back and letting AI handle the complexities of campaign management can drive superior outcomes, freeing teams to focus on strategy.
- Deliver Value Beyond Discounts: Winning over customers wasn’t just about price. A seamless experience—from fast websites to easy returns—helped brands build trust and secure repeat business.
- Physical Stores Have a Role: Brick-and-mortar locations that embraced the event-like nature of Black Friday successfully captured a share of spending, proving that in-store can coexist with digital dominance.
As retailers move further into December, these insights serve as a roadmap for maximising revenue in the final stretch of the Golden Quarter. Black Friday may be over, but the lessons it provided will resonate well beyond the peak season, shaping strategies for years to come.
Published 11/12/2024
