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It’s been a month of new releases in the entertainment market with four iconic global entertainment brands launching their own answers to the rise of streaming services in popular culture. Apple, Disney, and ‘Britbox’ - the joint venture between two British television channels, the BBC and ITV - have all launched to the public in a matter of weeks. It’s clear that traditional entertainment brands are all vying to claim their slice of the pie in the online streaming market. This should come as no surprise…Cardlytics data shows that UK consumer spend on streaming services – such as Netflix, Amazon Prime Video, and NOW TV – rose by 28 percent in the last year alone[1]. It’s a trend that is set to continue. Month-on-month spend growth last year remained consistent, between 20 to 35 percent, indicating the meteoric rise of streaming services shows no signs of slowing.Despite the average annual cost of a streaming subscription staying at an affordable £10, just 16 percent of the average price of an annual paid TV subscription, spend on streaming services now equates to 10 percent of total spend on paid TV subscriptions offered by the likes of Sky, BT, and Virgin. The numbers are stark and show the significant appetite for streaming services among consumers.Yet, there’s a clear age divide in the use of different entertainment services with 20-39-year-olds accounting for 30 percent of overall streaming spend. This reveals it is the younger generations who are responsible for driving the growth in streaming. By comparison, older generations remain loyal to traditional paid TV, responsible for the majority (66 percent) of spend in this area. The big ‘switch’While Sky, Virgin, and BT continue to take the lion’s share of consumer spending in the entertainment market by value, the number of consumers switching to new TV streaming services is on the rise and eating into their market share.Our data finds that consumer switching from paid TV to streaming services grew by 40 percent in the last year. Again, it's young people driving the trend, with over half (60 percent) of 20-39-year-olds having switched from a paid TV subscription to a streaming service in the last year alone. That said, traditional paid TV brands needn’t be too concerned. While switching was on the rise, spend on paid TV subscriptions did not experience a dip between 2018 and 2019, suggesting that traditional brands are themselves winning new, higher spending customers. Clever partnerships, like Sky’s tie-up with Netflix to offer the service as part of its ‘Ultimate on Demand’ subscription package, show paid TV providers are working hard to stay relevant and respond to the growing demand for streaming services. The cost of content Netflix is the most popular streaming subscription in the UK, with 11 million subscribers, but it is becoming increasingly expensive, with its most popular package now priced at £8.99 a month. The rising cost of streaming services is no coincidence, as content plays an increasingly important role in enticing customers. More players entering the streaming market have created an arms race for content, with each provider investing heavily to produce the next hit series, film, or documentary which will keep consumers coming back for more. In April 2019, the final series of Game of Thrones aired on Sky Atlantic and streaming service NOW TV, with the finale drawing an average of 3.2 million viewers in the UK^[2], leading to a 28 percent spike in spend on streaming services that month versus the same month the year before. For leading brands like Netflix and Amazon, using insights like these to better target their audiences is a way of ensuring they defend their prominent positions from encroaching competition. Likewise, analysing spend data to identify which and why audiences still watch paid TV will help paid TV providers to personalise their offers further and maintain their market share. As the entertainment wars intensify, it’ll be those who can use data most effectively to understand their consumers who will come out on top.

[1] Data was obtained in the year up to September 2019, and compared with the corresponding period in the prior year. For 2018, data was tracked from September 2017 to September 2018

[2] https://www.theguardian.com/tv-and-radio/2019/may/21/game-of-thrones-uk-tv-ratings-viewers-2am-finale  

The Super Bowl is an exciting time for all football fans, and/or people who just love a good party. But, it’s also a great time for marketers, as the cities of the competing teams often see a spur in economic activity before, during, AND post-Super Bowl.

We analyzed nine total weeks in 2017 – four weeks prior to the Super Bowl, Super Bowl week, and four weeks post Super Bowl, and found:

• People in the competing cities generally wait till the final weeks to buy their tickets. We saw that just three weeks prior to Super Bowl week in 2017, ticket providers’ sales among Georgia and Massachusetts (last year’s competing team states) saw a 24% spike from the weekly average.
• During the week of Super Bowl 2017, nationally, grocery sales were up 6.8% from the average and pizza sales were up 2.6%.
• During that same week, however, grocers in Georgia and Massachusetts, saw a 7% increase in sales, while pizza restaurants saw a 5% increase during Super Bowl week.
• While wholesale clubs didn’t see any major spikes nationally during that week, Georgia and Massachusetts wholesale clubs saw a 4% spend increase from the average.
• The euphoria around the big game causes more overall spending in competing team states. Georgia and Massachusetts customers spent nearly 16% more, overall, than the weekly average during Super Bowl week in 2017, while the national spend was actually below average that week.
• Nationally, people wait to see the winner to get their gear, as we see the national increase in sporting goods stores increase in the weeks post-Super Bowl.

While the Super Bowl is just one day, we see that the economic effects can linger for weeks beyond the game itself. So, for marketers looking to capture increased spend around the Super Bowl, specifically sporting goods retailers carrying team gear, you still have time to reach fans and drive sales.

Good timing for marketers: Cardlytics’ data reveals last year’s holiday sales were up 2% year-over-year. Even more great news, the forecast is showing continued growth for 2019.So how can retailers make sure they’re maximizing their sales potential? To help answer this question, we analyzed over $2.8T in purchase data across our banking partners and identified the biggest holiday spend trends.Here’s a deeper dive into the second trend marketers need to know now that the busiest retail season is officially upon us:Holiday shoppers are making more frequent but smaller purchasesThe biggest driver of holiday sales growth last year was an increase in the number of purchases customers are making.Last holiday season, customers made 2.7% more purchases vs. the year prior—although this was slightly offset by a 0.7% decrease in basket size. This means customers are spending more frequently than last year, but spending a bit less on each purchase.

Frequent small purchases were particularly important for online channels. Purchases increased 16.6% year-over-year for online-only retailers and 6.8% for traditional retailers’ online stores—what we call Brick&Mortar.coms—while basket size decreased by 2.6% and 1.7% for each channel, respectively. As we have all personally experienced, with shipping becoming faster and cheaper, there's less incentive to buy everything at once in order to save on shipping costs. ​Actionable tips:Retailers should continue to explore—and quickly execute—ways to make it easy for customers to continuously chip away at their holiday shopping lists. Promoting gift guides and convenience benefits, such as free shipping and ship-to-store options, will go a long way to drive customers to make that one more purchase with them. When customers know they can head to the store to pick up their online order, they will hopefully feel inspired to do some additional shopping!Want more Holiday insights? Check out more key spend trends here and stay tuned for our next blog post next week, when we’ll dig deeper into spend trend #3: Brick & Mortars dominate holiday spend, but online channels continue to steal share.

Halloween may come first, but the winter holidays are already gaining attention – and aisle space. With nearly 40% of holiday spend occurring in the four weeks before Black Friday, early bird shoppers are gearing up to tackle their holiday shopping lists—even picking up candy canes alongside their candy corn. By analyzing $2.8 trillion in actual purchase data across our banking partners, Cardlytics has identified key trends in holiday spend behavior for marketers to leverage during the busiest retail shopping season of the year.Here are four of the top holiday spend trends for 2019:1.  The time period between Halloween and Black Friday is key for capturing holiday shoppers

Download the high-resolution image[/caption]2.  Holiday spend is on the rise year-over-year, with customers making more frequent but smaller purchases

Download the high-resolution image[/caption]3.  In-store sales still dominate holiday spend, but online channels continue to steal share

Download the high-resolution image[/caption]4.  Holiday shoppers who spend both online and in-store at the same retailer spend more than those who shop just one channel

Download the high-resolution image[/caption]5. The three things yule need to know about Holiday spend seasonality

Download the high-resolution image[/caption]6. 'Tis the season for convenience

Download the high-resolution image[/caption]7. eCommerce and brand love spread good cheer

Download the high-resolution image[/caption]

Download the high-resolution image[/caption]8. Focus on fa la la la loyals

Download the high-resolution image[/caption]Want more Holiday insights? We’ll be digging deeper into each of these trends and revealing more holiday insights in the coming weeks. Check back for more purchase insights and tips to capture spend all season long.

As stores begin offering their holiday deals earlier and earlier, the days when Black Friday officially launched the holiday shopping season are long gone. So when exactly will customers start tackling their holiday gift lists? In a word, now. This week—the week of Halloween—has replaced Black Friday as the event that kicks off the holiday shopping season.The time period between Halloween and Black Friday is key for capturing holiday shoppers Marketers’ early holiday campaigns are paying off, as the weeks between now and Black Friday have a substantial impact on overall holiday sales. In fact, 40% of last year’s total holiday sales occurred in the four weeks before Black Friday.

Black Friday is still a milestone, but the mid-season sales spike that you would expect to see around Black Friday and Cyber Monday continues to be less pronounced than in years past. Retailers need to persist with ongoing marketing campaigns to win shoppers continuously throughout the next nine weeks to maximize their holiday returns.For instance, almost replacing Black Friday in terms of importance, our data shows that nearly 30% of holiday sales occurred in just the two weeks leading up to Christmas. Beyond early holiday sales, there are plenty of opportunities to drive last-minute revenue.Actionable tip for gaining early season shoppers:Early-bird shoppers are ready to spend. Appeal to them with gift guides organized by recipient so they can easily start checking off their lists. Consider keeping them engaged with progressive deals throughout the season to drive repeat purchases.Want more Holiday insights? Check out more Cardlytics holiday spend trends and stay tuned for our next blog post on Friday, where we’ll dig deeper into thenumber one driver of holiday spend.

Once school is in session, it may be tempting to save the next big marketing push until the winter holidays. However, now is the time to acquire customers who will really move the needle during the busiest shopping season of the year. This brings us to our last (but not least) back-to-school trend #5:Fall Lays the Foundation for More Holiday SalesAfter the back-to-school season ends, it is critical to keep the momentum going during the fall to stay top-of-mind leading into the winter holiday shopping season. Last year, 64% of holiday sales were from repeat customers. Across the majority of retailers, customers from fall acquisition campaigns not only drove a boost in fall sales, but they also set stores up for success during the holidays—spending 20% more overall than customers acquired in December.

Actionable Tip: Don’t wait until the winter holidays to start your marketing efforts. Strengthen brand loyalty now by running post-back-to-school campaigns to get your customers in the habit of choosing your brand.Want more Back-to-School Insights?Check out all five of our back-to-school spend trends based on our analysis of $2.4 trillion in purchase data across our banking partners, and look out for our Holiday Spend Trends Report this fall.

Earlier this week, we looked at the channels customers are shopping to check off their back-to-school lists and when they’re making these purchases. But which retail categories are bringing in the most shoppers?

Convenience Reigns Supreme During Back-to-School

Retailers that carry multiple items on shoppers’ lists are winning the battle for back-to-school. Last year, multiline retailers like Amazon, Walmart, and Target accounted for nearly 75% of all back-to-school spend, and their share is growing. Multiline was also the only category to increase their share of back-to-school spend year-over-year. That said, customers were still willing to make specialty trips for categories like apparel.

Also of note, multiline Brick & Mortar retailers saw spend at their online stores grow faster than their Online-Only counterparts—driven by an increase in total customers and more frequent purchases. This helped offset a flat back-to-school season at their physical stores.

Actionable Tip:

In order to protect their share, vertical retailers must give customers a reason to make the specialized trip. Consider offering sales on your exclusive brands or products and highlighting them in any promotional materials.

Want more Back-to-School Insights?

Check out more key spend trends based on our analysis of $2.4 trillion in purchase data across our banking partners and stay tuned for more back-to-school blog posts next week. On Tuesday, we’ll dig deeper into spend trend #4: Omni-Shoppers Drive Incremental Value During Back-to-School.

Last week, we explored customers’ penchant for convenience when it comes to the types of stores they shop during back-to-school. This also comes into play for trend #4:

Omni-Shoppers Drive Incremental Value During Back-to-School

At Cardlytics, we think about omnichannel as both a customer mindset and the channels through which they buy. Driven by convenience, omni-shoppers flow easily between in-store and online channels—making purchases based on what works best within their day-to-day.

Omni customers underscore the value of enabling a convenient shopping experience during the back-to-school season. In 2018, customers who shopped online as well as in-store spent 48% more, and made 48.1% more purchases during the season than their single-channel counterparts.

Within key back-to-school categories, single-channel customers still account for over 75% of customers, and there is a significant opportunity for retailers to convert these single-channel customers into more valuable omnichannel customers.

At the end of the day, what matters is winning the next sale by fitting into customers’ daily lives—regardless of the channel.

Actionable Tip:

Customers want the same offers across all channels; Cardlytics works for any customer path to purchase. We can help convert single-channel customers into omni customers, pinpoint your best omni customers to grow loyalty, and increase your share of spend with customers who are omni at your competitors.

Want more Back-to-School Insights?

Check out more key spend trends based on our analysis of $2.4 trillion in purchase data across our banking partners, and don’t miss the final part of our back-to-school blog series on Thursday, Fall Lays the Foundation for More Holiday Sales.

We’re in the final hours of Prime Day—the perfect backdrop as we take a closer look at trend #2 in our series of key back-to-school spend trends:

Early Sales Give Online-Only Retailers an Edge on Back-to-School

Since the inaugural Prime Day in 2015, Amazon has continued to set the pace for when back-to-school shopping kicks off. Last year, online retailers’ sales peaked the week of Amazon Prime Day for the fourth year in a row. Brick & Mortars and their online properties—what we call Brick&Mortar.coms—followed suit, with sales peaking two weeks later.

In this case, the early bird gets the worm – Prime Day is pulling back-to-school spend forward and laying the foundation for Online-Only retailers’ YOY share growth. If traditional retailers want to recapture share of wallet, they’ll have to get in front of customers earlier in the season while they’re beginning to knock out their shopping lists online. This week, many retailers are already taking advantage of the “Prime Day effect” with their own early sales.

Actionable Tip:

Prime Day may kick off the season, but there's still time to capture the August sales spike traditionally seen by Brick & Mortar stores and their online sites. For retailers planning to continue their sales in the coming weeks, consider launching teaser campaigns. This will encourage shoppers to start scoping out your products and filling their online shopping carts so they are ready to check out as soon as the sale hits.

Want more Back-to-School Insights?

Check out more key spend trends based on our analysis of $2.4 trillion in purchase data across our banking partners and stay tuned for our next blog post on Friday, where we’ll dig deeper into spend trend #3: Convenience Reigns Supreme During Back-to-School.