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Online Holiday Spending Surges 9% as Deep Discounts and AI-Powered Chatbots Drive Purchases

Wesley ParkTuesday, Jan 7, 2025 8:18 am ET

1min read

The 2024 holiday season has seen a remarkable surge in online spending, with consumers shelling out a record $241.4 billion, up a staggering 8.7% from the previous year. This growth can be attributed to several factors, including deep discounts and the increasing influence of AI-powered chatbots on consumer behavior.

Deep discounts have played a significant role in driving this growth. Adobe Analytics data shows that for every 1% decrease in price, demand increased by 1.029% compared to the 2023 season, driving an additional $2.25 billion in online spend. This strong response to discounts is attributed to increased price sensitivity among consumers. For instance, electronics saw discounts peak at 30.1% off listed price, with toys at 28%, apparel at 23.2%, and furniture/home goods at 19%. These competitive prices encouraged consumers to "trade up" to higher-ticket items, with the share-of-units-sold for the most expensive goods increasing by 21% overall. In categories like sporting goods, electronics, and appliances, this figure rose by 54%, 48%, and 35% respectively.

AI-powered chatbots have also significantly impacted consumer shopping experiences during the 2024 holiday season. According to Adobe's analysis, traffic to retail sites from generative AI-powered chatbots increased by 1,300% compared to the previous year. On Cyber Monday alone, chat bot usage grew by 1,950% YoY. This surge in usage indicates that consumers are embracing AI as a shopping assistant, with 70% of respondents in an Adobe survey believing it enhances their shopping experience. Consumers are using AI to find the best deals (20%), locate specific items (19%), and get brand recommendations (15%). This increased efficiency and convenience have likely contributed to the overall growth of online holiday spending.

In conclusion, the 2024 holiday season has witnessed a significant surge in online spending, driven by deep discounts and the increasing influence of AI-powered chatbots on consumer behavior. As retailers continue to adapt their strategies to capitalize on these trends, consumers can expect an even more seamless and personalized shopping experience in the years to come.

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foureyedgrrl

01/07

$ADBE The real issue here is whether they can maintain their edge in an environment where AI makes it possible for numerous competitors to provide content creation and editing services. Can their leadership position withstand the impact of AI? Can they profit from AI and remain on top, or will it undermine their premier status? This is a critical question. It’s not just about the stock being valued at $400 or $500, it’s about the very foundation being challenged.

Turbonik1

$ADBE this is some pretty bad action.

BlackBlood4567

$ADBE On a predictable schedule.

GoStockYourself

$ADBE Online holiday spending surged by nearly 9%, driven by deep discounts and AI-assisted chatbots, according to Adobe's data. Adobe Analytics reported an 8.7% increase in online purchases during November and December as consumers capitalized on these savings. Lead analyst Vivek Pandya from Adobe Digital Insights noted that shoppers are now "event-ized," waiting for special occasions to buy products at discounted prices. Check out the full story here: https://www.stck.pro/news/ADBE/97759606/

Tryingtodoit23

Generative AI changing retail game for real

LufaMaster

Deep discounts drove demand up. Price sensitivity is real. Retailers who adapted survived. 🤑

ashish1512

Cyber Monday chatbot usage 🚀 impressive, ngl.

Monkiyness

Deep discounts = smart shopping, folks!

-Joseeey-

Deep discounts drove demand up. Adobe saw a $2.25B boost for every 1% price drop. Retail math like a pro, folks.

Very_Guilty_Lawyer

The online holiday spend hit $241.4B. Retailers, it's time to analyze and adapt to consumer behavior for a strong 2025.

fluffnstuff1

Price sensitivity is real. Discounts made a 21% increase in share-of-units-sold for high-ticket items. Retailers, price smartly.

Local-Store-491

Cyber Monday chatbot usage skyrocketed. 1,950% YoY? That's some next-level shopping power. Retailers who harnessed AI won big.

Gentleman1217

I'm all in on $AAPL and a bit of $TSLA. My strategy? Hold tight and enjoy the ride, holidays or not.

_Ukey_

Chatbots are the new shopping assistants. Retailers who leverage AI now will dominate the market in 2025 and beyond. 🚀

the_doonz

Holding $AAPL, waiting for post-holiday dip.