The 2024 holiday shopping season marked a pivotal shift in consumer behavior, with paid search leading the way for retail sales, according to Adobe. Smartphones became the dominant platform for online purchases while generative AI emerged as a significant shopping assistant.
Channel wins. Paid search led holiday retail sales with 29.7% revenue share (up 1% YoY), while affiliates and partners, including influencers, saw stronger growth at 17.6% (up 6% YoY), significantly outperforming social media traffic.
Influencers proved highly effective, converting shoppers 9x more than social media overall, with 37% of Gen Z making purchases based on their recommendations
By the numbers:
Total online spending: $241.4 billion (up 8.7% YoY)
Paid search revenue at 29.7% (up 1% YoY)
Mobile shopping share: 54.5% of transactions (up from 51.1% in 2023)
Buy Now Pay Later spending: $18.2 billion (up 9.6% YoY)
AI chatbot retail site traffic: Up 1,300% YoY
The big picture. Three categories drove more than half of all online spending:
Electronics: $55.3 billion (up 8.8%)
Apparel: $45.6 billion (up 9.9%)
Furniture/home goods: $29.2 billion (up 6.8%)
Why we care. The stats show that paid search advertising was once again effective during the 2024 holiday shopping season, confirming it is still worth being present in the competitive space. The rise of mobile shopping, now accounting for 54.5% of transactions, and the increasing reliance on generative AI chatbots emphasize the need for mobile-first strategies and innovative shopping experiences.