From Data to Decisions: 2024 Retail Advertising Trends and Recommendations

To effectively allocate ad spend, it’s crucial to understand its historical distribution. In the pre-digital era, media investments were relatively predictable and confined primarily to linear channels. However, as media channels fragment, tracking and anticipating advertising trends becomes increasingly complex. The modern approach to media planning requires continuous intelligence monitoring coupled with regular strategy reassessment and refinement.

A key driver of marketing spend is retail, making it essential to analyze 2024 retail trends for insights into effective advertising strategies for 2025.

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2024 Guideline Retail Insights

As the advertising world gets ready to wrap up 2024, Guideline provides professional insights into some of the ad spend data trends in retail from the first three quarters of the year. 

The following 2024 retail trends, most notably surrounding the Apparel & Accessories category, reflect current trends in the retail industry that are likely to impact overall media planning and investment efforts in 2025:

Overall Growth

The growth seen in the Apparel & Accessories category is believed to be a sign of retail recovery. Media spend for this category surged 11% year-over-year in Q1-Q3 2024, bouncing back from a 10% year-over-year decline the previous year. According to a recent EMARKETER report, this category is expected to “maintain solid growth” for the remainder of 2024 and “accelerate next year.” Findings from The Business Research Company mimic this prediction, claiming that “the growing demand for e-commerce is expected to propel the growth of the clothing, footwear, and accessories market.”

Segment Spotlight: Apparel & Accessories Category

The Apparel & Accessories Product Category Group includes two Product Categories: Apparel & Footwear and Accessories. Both returned to ad spend growth during Q1-Q3 2024, with Apparel & Footwear accounting for 60% of overall dollars. Apparel & Footwear experienced a 16% increase year-over-year and Accessories saw an increase of 4%, rebounding from a 9% year-over-year decline the year before.

According to Guideline’s All Media Market Brief (U.S.) for H1 2024, the first half of 2024 showed a 17% surge in Digital media spend overall—a 4% year-over-year increase from H1 2023. All Digital channels grew by double digits in H1 2024, with Search rising at the fastest rate (+21%). Ad spend for the Apparel & Accessories category mimics these trends, experiencing 4% growth year-over-year in Digital led by Social (+34%) and Search (+49%).

Over recent years, investment in Traditional media channels has steadily declined in favor of Digital ad spend. However, retail categories like Apparel & Accessories have seen a surge in a select few Traditional segments, notably Linear TV and Out-of-Home (OOH). These particular segments grew 32% and 27% year-over-year respectively, reclaiming 3% market share from Digital—and proving Traditional channels won’t go down without a fight.

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Retail Recommendations for Next Year

To align with the emerging trends and anticipate outcomes for 2025, Guideline offers practical suggestions for optimizing your advertising strategy:

1. Focus on Digital and OOH Investments

To capture the evolving consumer landscape, advertisers should prioritize robust investments in Digital channels, particularly Social and Search, alongside OOH advertising. Given the significant growth in these areas, a strategic allocation of resources here will help brands connect with audiences more effectively.

2. Adapt Strategies Based on Current Trends

‍‍With the Apparel & Footwear segment experiencing a remarkable 16% year-over-year growth in Q1-Q3 2024, media planners should tailor campaigns to capitalize on this positive momentum. Keeping an eye on competitive benchmarks and adjusting strategies to reflect ongoing market shifts will be crucial for maximizing impact in 2025.

3. Utilize Data for Continuous Monitoring

‍The rapid diversification of media channels necessitates granular data analysis to track consumer behavior and optimize strategies in real time. Leveraging current trends to inform decision-making and regularly reevaluating advertising strategies against industry benchmarks will be essential for maintaining relevance and driving success.

By implementing these recommendations, brands can better position themselves for growth in 2025, ensuring they are responsive to market dynamics and consumer preferences. Leverage Guideline’s advanced tools for streamlined strategies and enhanced performance.

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