Markacy Releases 2021 Holiday Marketing Forecast for DTC Brands

FY21 Q4 retail and e-commerce predictions and analysis include ad spend, early promotions, planning for shipping delays and store crowding

Markacy, a digital strategy and marketing firm based in New York City, today released its 2021 Holiday Marketing Forecast. Markacy works primarily with direct-to-consumer (DTC) brands in fashion, beauty, health and wellness, food, beverage, home goods and pet sectors, among others, such as Tamara Mellon, Hobo Bags, Serenity Kids and PetPlate. The report is an assessment of various factors aimed at helping brands navigate unique challenges and seize new opportunities in the 2021 holiday season.

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Chris Jones, Managing Partner and Co-Founder at Markacy said: “With in-store shopping making a rebound, as well as continued demand for e-commerce, DTC brands need to prepare for a holiday season like no other. Strong early consumer demand is an indication of accelerated spending throughout Q4, so brands need digital and marketing strategies to help them seamlessly engage with customers and make lasting connections beyond the noteworthy holiday dates.”

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The report includes trends, analysis and recommendations such as:

  • Facebook conversion rate is projected to spike during the BFCM period and remains largely elevated through year-end, albeit at a lower rate than last year due to expected year-over-year increases in offline commerce channels
  • Brands should incentivize early shopping with free shipping promotions as a hedge against expected shipping delays during peak shopping time
  • iOS 14.5 and 15 implications: near-term turbulence is meaningful as advertisers navigate reporting challenges and increased ad costs
  • Direct Mail has made a comeback in 2021 and will be a key acquisition channel for brands in Q4
  • Holiday sales are starting earlier in efforts due to increased competition and consumer appetite for compelling promotions
  • In November alone, brands can benefit from doubling their normal ad spend and continue increases throughout November with a peak of 5x-10x weekly pace during BFCM

Tucker Matheson, Managing Partner and Co-Founder at Markacy added: “Because retailers are starting their seasonal sales earlier than ever, it’s key that brands define their daily marketing calendar through the end of December, and align media and marketing budgets accordingly. Brands need each dollar working as hard as possible this year, and by saving budget for key brand moments during the holidays, brands can increase peaks in sales and minimize waste during non-core sales days.”

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