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    Advertising, Connected TV

    Here’s Why You Shouldn’t Worry About Supply Chain Issues This Holiday

    This season has better opportunities than you may think

    Here’s Why You Shouldn’t Worry About Supply Chain Issues This Holiday

    3 Min Read

    Once again, the holidays are just weeks away. A lot has changed since the pandemic rocked last year’s holiday plans, but a sense of lingering uncertainty still hangs in the air. As the nation navigates a second year of COVID-19, systemwide supply chain issues threaten to deplete retailer inventory. All of this is set against the backdrop of a holiday season that’s projected to break records, with consumer demand higher than ever.  

    It’s a perfect storm of challenges, and it’s understandably causing some advertisers to worry about their holiday campaigns. Here’s the good news: you probably don’t need to worry that much. Why? Because like any good challenge, there are golden opportunities for clever advertisers who play their cards right.

    Shoppers Don’t Blame Retailers

    The supply chain breakdown has retailers spooked – no one wants to be on the hook for not fulfilling demand and dealing with brand fallout. The good news? Consumers aren’t blaming retailers anyway, according to a new study from Morning Consult.

    When asked who is responsible for the lack of clothing, cars, food, electronics, and other items, 58% of U.S. adults said shipping companies deserve either a lot or some of the blame, and 56% blamed the federal government. Only 37% thought stores deserve some blame for out-of-stock items – a ranking so low it’s neck-and-neck with respondents who blame the weather.

    High Reward/Low-Risk Gift for Retailers

    The message is clear: while some retailers are pulling back on advertising amidst fears of a backlash, now is not the time to let off the gas. In fact, you may want to floor it. Between November and December this year, consumers are expected to spend between $834.4 billion and 859 billion. That’s an 8.5% to 10.5% increase over last year’s record-breaking high – and a major shot in the arm of the retail industry.

    With their competition pulling back over unfounded fears, savvy retailers are in a unique position to capitalize on soaring demand, have more advertising landscape to themselves, and claim more consumer mindshare. Some brands have already discovered a clever workaround that makes customers happy and dodges any supply chain woes: gift cards.

    Gift Cards: The Gift That Keeps on Giving

    Supply chain breakdowns have been a growing concern for shoppers this year, with 52% starting their holiday shopping as early as October to avoid missing out on gifts. But the big gift everyone is wanting this year is something that never runs out – gift cards. This year, shoppers plan to spend about $270 in gift cards per person – equaling about 40% of their total gift purchases.

    And it’s not just shoppers who are wanting them – they’re what people are asking for too. Studies have shown that 75% of Millennials, 60% of Baby Boomers, and 44% of women would prefer gift cards over anything else. That’s music to the ears of retailers, who can focus their holiday advertising on gift cards and bypass any inventory issues. By taking the focus off physical items, gift cards let brands continue to generate revenue while reducing any customer service issues – and opens the door to generating additional revenue beyond the gift card’s total.

    Bringing it Home with Performance TV

    So to recap: this holiday will be white-hot, you’re going to have less competition, customers don’t blame retailers for supply chain breakdowns, and gift cards are a popular fallback option for everyone else. The only piece missing is how to get your message across – and that’s where Connected TV platforms like MNTN Performance TV come in.

    Performance TV delivers the powerful storytelling of linear TV with the laser-precision targeting and real-time feedback of digital marketing — all served on premium channels and on the biggest screen in the house. The result is brands have the ability to deliver ads to gift-givers based on their interests, shopping history, location, and more. For retailers looking to maximize this once-in-a-lifetime opportunity, that’s something worth celebrating this year.