By: The AXM (Ars X Machina) Media Team
With nearly half of U.S. shoppers (47%) expected to return to in-store shopping this holiday season, the demand for a seamless omnichannel experience is stronger than ever. According to Experian’s recent report, shoppers across generations—especially Gen Z and millennials—are seeking to balance the convenience of online shopping with the immersive experience of physical stores. As online holiday spending grows, projected to reach $240.8 billion, brands and retailers have a unique opportunity to merge digital and physical interactions, creating holistic experiences that engage shoppers across touch points.
Key Trends and Data Insights
This year’s shopping data offers key takeaways for advertisers looking to refine their strategies:
- Shoppers are Heading Back In-Store: Nearly half of consumers plan to shop in physical stores, marking a continued return to pre-pandemic shopping behaviors. Physical presence is especially critical for certain demographics, with more than half of baby boomers and nearly half of millennials planning to make in-store purchases.
- Mobile Dominance in Digital: More than half of Gen Z and millennials will complete their online purchases via mobile devices, highlighting the importance of a mobile-optimized digital experience and geo-targeted promotions.
- Budget-Conscious Spending at Discount Retailers: Consumers, especially younger demographics, are budget-focused and leaning toward discount and mass retailers for their holiday purchases, meaning retailers in these categories are especially well-positioned to capture foot traffic this season.
What This Means for Advertisers
For retailers with both physical and digital channels, the focus should be on bridging the online and in-store experience to create a cohesive journey. Campaigns can emphasize “buy online, pick up in-store” (BOPIS), localized inventory availability, and digital ads showcasing in-store exclusives or holiday-themed promotions. For instance, geo-targeted ads can highlight a nearby store’s deals or events, driving foot traffic while retaining the flexibility of online shopping. Omnichannel strategies benefit from retargeting campaigns that direct customers who browse online back into the store with personalized incentives like discounts or bonus gifts.
Brands with no digital shopping options also have a unique opportunity to enhance their in-store visibility through strategic multi channel placements. Brick & Mortar retailers are increasingly using digital channels to boost awareness and guide consumers back to stores. For these advertisers, creating cohesive messaging that encourages store visits—while still engaging online audiences—is key. Utilizing influencers for in-store experiences and “find it locally” ads on platforms like Google and Facebook can help guide consumers from awareness to an in-store purchase.
Immediate Paid Media Opportunities
An integrated multi channel approach presents several immediate paid media opportunities:
- Geo-Targeted Social Campaigns: For brands with both online and physical presences, location-based campaigns can drive nearby consumers to stores. For instance, running localized Instagram and TikTok ads featuring in-store experiences or promotions can boost foot traffic during the high-intent holiday period.
- Cross-Channel Retargeting: Brands can use data to identify customers who browse products online but have not purchased, then retarget them with mobile ads or SMS messages that highlight nearby in-store availability or exclusive deals. AXM’s Agile Mix Modeling (AMM) tool, which helped an omnichannel retailer shift spend that wasn’t driving any incremental revenue to more impactful channels, exemplifies how data-driven retargeting can optimize budgets and drive store visits effectively.
- Branded Video and CTV Campaigns: Video, particularly on Connected TV (CTV), can be a powerful driver of awareness for in-store holiday promotions. CTV allows brands to reach audiences in an immersive format, connecting with both younger viewers and holiday shoppers looking for a “holiday shopping experience.” Video also provides an avenue for brand storytelling, making it effective for connecting emotionally with consumers and reinforcing the brand’s presence across multiple channels.
How This Fits into a Broader Paid Media Strategy
Adopting an omnichannel customer experience approach through a multichannel paid media approach doesn’t just improve seasonal reach—it fits into a more sustainable long-term paid media strategy. By blending digital and physical channels, brands can build ongoing relationships that outlast the holiday season. The key to a successful strategy lies in continuous data analysis and flexible budget allocations. AXM’s experience in using Agile Mix Modeling (AMM) to determine how shifting spend from over-saturated digital placements to high-impact local channels can not only boost holiday revenue but also sustain incremental growth year-round. As consumer habits shift, dynamic optimization tools like AMM allow brands to reallocate spend quickly to meet changing demands and maximize ROI across both digital and in-store channels.
Future Outlook for Omnichannel Strategies and Paid Media
The retail space is expected to continue evolving toward hybrid shopping models that leverage both digital convenience and in-store engagement. Over the coming years, brands will likely invest more in sophisticated data and technology solutions to track cross-channel behavior in real-time and fine-tune omnichannel campaigns mid-flight. This approach not only meets consumer expectations for personalization but also empowers brands to maintain a competitive edge in a crowded retail landscape.
For advertisers, the future of paid media will increasingly involve leveraging first-party data to measure the full consumer journey, from online engagement to in-store conversions. As the industry transitions to cookie-less targeting, reliance on AI and machine learning for real-time insights and precise targeting will become even more critical.
The renewed emphasis on in-store shopping this holiday season is more than a passing trend—it’s a call for advertisers to create richer, more integrated shopping journeys. By staying agile, data-informed, and consumer-centric, brands can capture consumer attention, build lasting loyalty, and maximize their holiday revenue across both physical and digital realms.
