DTC727: Online Holiday Sales Insights 2024

Good morning,

Here’s what you’ll find in today’s DTC:

📈 The numbers are in. Adobe Analytics shares revealing online holiday sales stats and why it was the ‘most mobile’ year of all time.
💰 Meta plans to spend billions on AI in 2025. Here’s what you need to know as a media buyer.
🗑️ And… What habits are you bringing into the New Year? Brands are using this social media trend to share what they are keeping and leaving behind.

You’re reading this newsletter along with new subscribers from: PepsiCo, Beiersdorf, and Fora Travel. 👋

🗺️ 2025 Success Starts with a Clear Roadmap

If you were heading somewhere new and had to be on time, would you just guess which way to go? 🤔

Of course not. You’d pull out your GPS and follow the directions. Why? Because it knows the way. Without it, you’d risk getting lost—frantically trying to figure it out as the clock ticks down and you’re still nowhere near where you need to be.

Planning your 2025 goals should be no different. Are you guessing at strategies, or are you following proven routes?

Pilothouse has mapped out what works—helping brands scale revenue, fine-tune campaigns, implement effective omnichannel strategies, and more. They know how to guide businesses to success.

Don’t start the year wandering. Don’t end the year racing against the clock.

👉 Book a call with Pilothouse today and start 2025 with confidence.

💡 Holiday Sales Insights: The Rise of Mobile, BNPL, and AI Chatbots

The numbers are finally in.

Adobe Analytics has compiled all of the record-breaking stats from the 2024 holiday shopping season (Nov 1st to Dec 31).

This data is based on more than 1 trillion visits to U.S. retail sites, 100 million SKUS, and 18 product categories.

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Here are all the important stats you should know:

• U.S. online holiday sales grew 8.7% YoY, totaling $241.4 billion, surpassing Adobe’s projection of $240.8 billion.
  
• Customers took advantage of BNPL options, spending $18.2 billion. 79.1% of BNPL transactions came from smartphones. Cyber Monday was the largest day on record for BNPL, driving $991.2 million.
  
• Discounts drove customers to ‘trade up’ to higher ticket items in categories like Electronics, Sporting Goods, and Appliances.
  
• More than half (54%) of online sales came from three growing categories: Electronics, Apparel, Furniture/Home Goods.
  
• AI chatbots are gaining popularity: Customers used them as shopping assistants, driving a 1,300% increase in retail site traffic compared to the same period last year.
  
• U.S. customers spent more than $4 billion online in a single day 15 times this year. Last year, this happened for 11 days. It’s worth noting a third of those days happened during Cyber 5.
  
• Mobile transactions were up. Smartphones drove 54.5% of purchases, compared to last year's 51.1%.
  
• Discounts in the U.S. peaked at 30% off the listed price, the best deals being electronics, toys, and apparel.
  
• However… ecommerce brands are also dealing with a ton of returns: More than $122 billion worth of purchases have already been returned in the first week of 2025, a 28% YoY increase.

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The takeaway?

Shoppers are prioritizing convenience, with mobile devices and AI chatbots transforming how they browse and buy.

However, the 28% rise in the rate of returns is a cause for concern. In the new year, retailers will need to minimize revenue losses from returns and reengage shoppers.

Read the full report here.

💰 What Meta’s New AI Features Means For Media Buying

Meta is planning to spend billions more on AI in 2025.

What does this mean for you?

If you are a Meta media buyer, you most likely are already using some of Meta’s AI features (Advantage+ features) they have been rolling out like Advantage+ audiences, image expansion, and ad copy generation.

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In case you haven't seen, Meta also made a new update where you can now "create media" (meaning Meta can push brands to make their own creative directly with Ads Manager).

There's a prompt box where you can ask Meta to create your designs from scratch. 👇

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While the testing phase has produced mixed results, building creatives within Meta's Ads Manager in the next few years may become the new normal.

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This will help:

• Smaller brands with a low creative budget
• Brands that need to test concepts and angles quickly
• Freeing up time so you can focus on other areas of your business

But the downside is…

• Your ads may feel less authentic
• It may be harder for your ads to stand out against competitors if you are using the same AI tools

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Have you tested these new AI Meta features yet? Let us know your thoughts.

🌐 IN THE SOCIAL SPHERE

Brands on Instagram are sharing carousel posts of what’s in and what’s out to start off the New Year.

Give followers inspiration on how your products can help.

All you need is your notes app to create this scrappy piece of content. An easy win.

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📅 EVENTS

Figma Config - A developer-focused conference exploring the future of design and development. Attendees can expect insightful sessions on topics such as collaborative workflows, design systems, and innovative Figma plugins.

🗓️ May 6-8, 📍 San Francisco, CA 💰$399

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Generative AI Summit - The AI Accelerator Institute event in New York is an exclusive gathering focused on advancing artificial intelligence strategies within business environments. Attendees can expect a diverse crowd of industry leaders, innovators, and tech enthusiasts representing major companies, startups, and research institutions.

🗓️ June 11, 📍 New York, NY 💰$299 - $445

📥 Got a B2B Biz?

Join dozens of B2B companies finding demand-gen success through our niche community of 160k brand leaders and founders this year. Talk to our team to learn more.

Have you heard our latest podcasts?

• ⛰️ TWBERP 15: Building An Email Audience in 2025
• 🏃 FabFitFun’s $1B Subscription Blueprint: Customization and Value
• 💡 AKNF 470: How Amazon’s Badges Impact Your Sales Strategy
• 📧 TWBERP 14: Five Fundamentals of Email Retention Marketing
• 🧻 Innovating the Toilet Paper Industry: The Fox Fold Solution
• 🚀 AKNF 468: How DTC Brands Are Scaling with AppLovin

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Don’t forget to rate the DTC Podcast on Apple (⭐️⭐️⭐️⭐️⭐️)

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DTC Newsletter is written by Rebecca Knight and Frances Du. Edited by Eric Dyck.

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