As inflation continues to cause sticker shock on goods, gift cards remain a popular option for holiday shoppers
InMarket, a leader in 360-degree consumer intelligence and real-time activation, released its annual report on gift card spending ahead of the holidays. The 2023 InMarket Gift Card Playbook provides an analysis of consumer spending plans in 2022, along with strategic recommendations for how to take advantage of this valuable opportunity.
Gift cards, known for their convenience and flexibility, have grown in popularity in the pandemic and inflation eras, allowing gift givers to delight their loved ones despite challenges posed by COVID-19, rising costs, inventory shortages, and shipping delays. InMarket’s playbook provides valuable insight into consumer purchasing behavior in this category. Key findings include:
- Gift cards are the #1 gift of the season once again, with 67% of respondents planning to purchase one in 2022. Gift cards are outpacing Clothing (56%), Toys (41%) and Electronics (27%), among other categories.
- Gift card buyers plan to purchase them for a variety of retail categories, with the most popular being Big Box (32%), followed by Apparel (27%) and Beauty (23%).
- While gift card spending has declined from its 2020 peak when many stores were still operating on limited hours, it is expected to remain above pre-pandemic levels for holiday 2022.
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Most gift cards (about 65%) will be redeemed within 180 days of purchase, providing marketers with a clear window to reach shoppers at a critical point in the purchase cycle throughout the holiday season and beyond.
“This year more than ever, folks are feeling the impact of inflation on their wallets. Gift cards provide consumers the flexibility to buy what they really want while easing the sting caused by rising prices,” said Todd Morris, Co-CEO of InMarket. “We’re working closely with brands to help them understand the value and importance of reaching gift card buyers and shoppers this holiday season. These efforts include identifying who to target and when and where to best connect with consumers during the purchase process to drive both engagement, sales and ultimately loyalty.”
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