Shopping habits have evolved significantly in the post-COVID era, with digital shopping now at the forefront of consumer behaviour. Traditionally, Boxing Day was the highlight of the holiday retail season. Today, Black Friday, driven by US influence and online shopping trends, is rapidly gaining popularity. Globally, Black Friday's influence is beyond doubt. In 2023 alone, online sales reached $9.8 billion in the USA and $70 billion worldwide, marking a 22% increase from the previous year. 

Why the shift? Consumers are increasingly leveraging Black Friday sales for early Christmas gift shopping, with over one-third of November purchases specifically intended as gifts. This isn't simply a one-day event anymore -  an "accordion effect" sees consumer spending habits compressing into November, with interest building from early October. Early-bird shopping, starting as early as November 12, is on the rise, with 20% of consumers shopping before Black Friday itself.

Our own e-commerce clients reflect this shift:

• Our clients invested 231% more ad spend in November compared to December
• Our clients generated +299% more revenue in November compared to December
• Our clients saw a +20% increase in ROAS in November compared to December
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However, for service-based brands prioritising lead generation rather than direct e-commerce sales, this intense period of digital ad investment can spike lead acquisition costs. To counteract this, we recommend refining targeting strategies to focus on engaging warm audiences, enabling brands to maintain visibility and control costs amidst heightened competition.

The takeaway? Black Friday’s influence is only getting stronger, with revenue growing YoY. Technology company, Block, reported a 16% growth in online sales and a 31% rise in in-store purchases. Online transactions, however, had cart sizes four times larger than in-person purchases. Brands that invest early in November also saw higher returns, with some kicking off lead-up campaigns as early as November 12.  The key is getting ahead–building your audience early through lead generation campaigns, running exclusive early-bird sales, and keeping the momentum going with follow-up offers throughout (and even post) Black Friday. Boxing Day still has its place, but it’s no longer the main character. If you’re currently planning budgets, Black Friday probably deserves the bigger slice.

As you plan your upcoming financial year, make sure your Black Friday strategy is front and centre. If you need to get in touch, we’re here to help you navigate this ever changing landscape.