Paid search helps drive record-breaking $241.4 billion holiday season: Report

Paid search helps drive record-breaking $241.4 billion holiday season: Report

Between the lines. Strong discounts influenced consumer behavior in unexpected ways. For every 1% price decrease, demand increased by 1.029%, driving an additional $2.25 billion in online spending. This price sensitivity led consumers to “trade up” to higher-ticket items, with the share of premium products sold increasing by 21% overall.

What’s new. Generative AI emerged as a significant shopping assistant, with Cyber Monday seeing a 1,950% increase in chatbot usage. About 70% of consumers who used AI reported enhanced shopping experiences.

Mobile momentum. Smartphones dominated holiday shopping, with peaks reaching 65% of all online sales on Christmas Day. This shift was particularly pronounced in Buy Now Pay Later transactions, where 79.1% occurred on mobile devices.

Bottom line. The 2024 holiday season demonstrates a fundamental transformation in ecommerce, with mobile shopping, AI assistance, and flexible payment options becoming the new normal for digital retail.

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