Want to discover the latest industry developments for January 2024? Gain valuable insights with in-depth analyses from more than 100 diverse brands, uncovering key trends shaping the landscape.
January 2024: Robust Performance
Entering the New Year, consumers are adjusting to heightened prices, growing personal debt, and prevailing economic unpredictability, coming to terms with these conditions as the new standard.
Nevertheless, this adaptation should not be misconstrued as indicating that consumers find themselves in an unchanged financial state compared to earlier times.
Facing these hurdles, consumers have demonstrated remarkable fortitude, enthusiastically seeking out and taking advantage of New Year promotions. This consumer behavior has culminated in an unprecedented surge in sales for many businesses when comparing year-over-year figures.
January 2024 Marketing Trends
Trend #1: Ad Spending Growth To Accelerate In 2024
Ad spending growth is widely forecast to accelerate in 2024, after a bumpy start to 2023 stemming from macro uncertainty as growth forecasts were pulled lower mid-year. The market is signaling a return to higher growth in 2024, along with new synergies from generative AI advertising offerings from Big Tech and pockets of more robust growth in digital and retail media ad spend.
Read more on Forbes.
Trend #2: GDP Q4 Growth, While Inflation Slows
- GDP, a measure of all the goods and services produced, increased at a 3.3% annualized rate in the fourth quarter of 2023. Wall Street had been looking for a 2% gain.
- The U.S. economy for all of 2023 accelerated at a 2.5% annualized pace, well ahead of the Wall Street outlook at the beginning of the year for few gains and better than the 1.9% increase in 2022.
- A strong pace of consumer spending helped drive the expansion, as did government spending.
- There also was progress on inflation. Core prices for personal consumption expenditures rose 2%, while the headline rate was 1.7%.
- Increased likelihood of soft landing for the US economy
- Potential central bank rate cuts in 2024
Read more on CNBC and JPMorgan.
Trend #2: Creative Agencies Continue to Explore Generative AI, but Ownership is Tricky
For almost every task, there’s an AI tool. Creative agencies are using these to summarize meetings, augment brainstorming sessions, and visualize ideas.
But there’s a stumbling block regarding who owns these AI-generated creations – they can’t be owned or passed on to clients as they stand. Editing might give agencies some claim to them, but how much tweaking is needed is still up in the air, with the courts trying to pin down the rules.
Trend #4: Established Workman’s Brands Finding New Audiences
Over the last several years, we’ve watched Carhartt (a 134-year-old brand) and Stanley (a 110-year-old brand) nurture new audiences that are a striking departure from their typical customer. How did they do it? They are different brands, but the key principles are the same:
- Know your customers: Recognize the growing segment.
- Listen to your customers: Find out what they want.
- Respond to your customer’s needs: Make choices (like merchandising or model selection) that reflect this new segment.
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Marketing KPIs: January 2024 Trends by Industry
Marketing KPIs: January 2024 Trends by Company Revenue
$100M+ | $15M-$100M | $0-$15M
Marketing KPIs: January 2024 Trends by Industry
Apparel Surges Across the Board
Apparel retailers have sustained substantial year-over-year (YOY) growth. Online shopping continues to be a favored option for consumers in the apparel and fashion sector.
Modest Y-O-Y Growth for Home Brands
Home Brands experienced modest year-over-year growth. The notable rise in orders implies that consumers are actively converting on home-related purchases, aiming to maximize the value of their spending.
Upswings for Outdoor Brands
Demand, orders, and sessions experienced a notable upswing for outdoor brands. Conversion rates improved compared to Nov/Dec 2023, indicating the need to spend on outdoors before Spring and Summer arrive.
Specialty Retailers See Slight Uptick in Demand
Despite a decrease in sessions from the previous year, specialty retailers observed a slight uptick in demand and orders. This suggests a higher conversion rate or increased purchasing activity among the existing user base.
Marketing KPIs: January 2024 Trends by Company Revenue
Tier 1 Brands: Decline in Demand Paired with Slowing Orders
Tier 1 brands experienced a modest 18.6% decline in demand, accompanied by a 5.6% decrease in orders and a 20.2% reduction in sessions. This trend implies that consumers are taking advantage of promotional purchases.
Tier 2 Brands: Substantial Expansion
Tier 2 brands witnessed notable expansion, marked by an 18.9% uptick in demand, a substantial 14.8% increase in orders, and a 3.7% rise in sessions. These figures suggest considerable Average Order Value (AOV) growth and conversion rates.
Tier 3: Surge in Performance
Despite potential conversion challenges last month, Tier 3 brands for January rebounded, signifying a consumer inclination to support small businesses. We saw a 19.6% increase in orders, a 23.4% uptick in demand, and a significant 21.36% surge in sessions.
In the News
Digital Velocity Podcast
Jeff Bartsch of Story Greenlight joins Erik and Tim to discuss the Power of storytelling. How the strategic application of storytelling science, businesses can
cultivate a more empathetic and understanding audience.
The Power of the Direct Approach
Direct mail continues to be a dynamic piece of the marketing landscape. Learn how to prepare for a strong 2024 and beyond.
5 Reasons Catalogs Work!
So, if you’re thinking about mailing a catalog (or killing your catalog) here’s a case for why catalogs still work. And, for those of you building a case internally to either your boss or your board, don’t miss the infographics we’ve collected at the bottom. Join Lois Brayfield as she dives into the 5 reasons why catalogs work!
USPS 2024 Postal Promotions
Registration for the 2024 USPS postal
promotions programs began mid-December. Let us guide you through the registration process.
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Tags: January 2024 Benchmarks, January 2024 KPI, January 2024 Marketing Trends