Black Friday: How Spending Habits Are Changing
Shopping habits have evolved significantly in the post-COVID era, with digital shopping now leading the way in consumer behaviour. Traditionally, Boxing Day was the highlight of the holiday retail season, but Black Friday has rapidly gained popularity, largely due to US influence and the rise of online shopping trends. In 2024, Shopify merchants reported $11.5 billion in global sales on Black Friday, marking a 24% increase from the previous year. A substantial portion of this growth was driven by the US, which saw $10.8 billion in Black Friday sales alone.¹
Why the shift? Consumers are increasingly leveraging Black Friday sales to kickstart their Christmas gift shopping. Black Friday is no longer a one-day event; for over 70% of US shoppers, gifts are the primary reason to shop during November sales, and nearly 65% begin their search for deals as early as October.²
Our own e-commerce clients reflect this shift in behaviour...
- They invested 231% more ad spend in November compared to December
- They generated +299% more revenue in November compared to December
- They saw a +20% increase in ROAS in November compared to December
Retail media advertising emerged as the leading driver of holiday ad performance in 2024, with spend in this channel up 92% YoY.⁴ However, service-based brands that prioritise lead generation over direct e-commerce sales may face rising lead acquisition costs during this intense digital ad period. To mitigate this, we recommend refining targeting strategies to focus on engaging warm audiences, which will help brands maintain visibility and control costs amidst heightened competition.
The takeaway?
Black Friday’s influence is undeniably growing. Technology company Block reported a 16% growth in online sales and a 31% rise in in-store purchases in 2024. Online transactions, however, had cart sizes four times larger than in-person purchases,⁵ highlighting the value of digital advertising. The key is getting ahead–building your audience early through awareness and lead generation campaigns. Awareness campaigns saw a 70% increase in ad spend, making them the second-highest invested campaign type after sales campaigns.⁶ Additionally, running exclusive early-bird sales and maintaining momentum with follow-up offers throughout (and even after) Black Friday are effective approaches.
Boxing Day still has its place but is no longer giving “main character energy”. As you plan for FY26, make sure your Black Friday strategy is front and centre – if you need help nailing your growth strategy for this highly competitive season, give us a call.
¹ Wilson, T Et al. (2024, December). Black Friday 2024 Recap: How eCommerce Trends, Creative Campaigns, Affiliate Networks, and Performance Delivered. Vervaunt. https://vervaunt.com/black-friday-2024-recap-how-ecommerce-trends-creative-campaigns-affiliate-networks-and-performance-delivered
² Boston Consulting Group. (2024). Black Friday Consumer Study 2024: What to Expect. https://web-assets.bcg.com/e9/6b/0ff886b5442e9fe95e72e974ae91/black-friday-consumer-study-2024-global-results-vf.pdf
³ Boston Consulting Group. (2024). Black Friday Consumer Study 2024: What to Expect. [Graph displaying Global consumer trends in Black Friday purchase behaviour]
⁴ Costello, C. (2024, December 4). Retail Media Spending Nearly Doubles on Black Friday 2024. Skai. https://skai.io/blog/black-friday-2024-analysis/
⁵ Erdly, C. (2024, December 9). Black Friday 2024: Insights, Trends, And Record-Breaking Figures. Forbes. https://www.forbes.com/sites/catherineerdly/2024/12/09/black-friday-2024-insights-trends-and-record-breaking-figures/
⁶ Wilson, T Et al. (2024, December). Black Friday 2024 Recap: How eCommerce Trends, Creative Campaigns, Affiliate Networks, and Performance Delivered. Vervaunt. https://vervaunt.com/black-friday-2024-recap-how-ecommerce-trends-creative-campaigns-affiliate-networks-and-performance-delivered
