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Sleigh this Holiday Shopping Season

The 2023 holiday season is just around the corner, and this year consumers will be headed to their favorite online and in-store brands earlier than ever! 

As we gear up for the 2023 holiday season, Cardlytics' comprehensive analysis of nearly $380 billion in consumer holiday spending over the past three years equips marketers with essential insights to win more during this critical period. Access our full 2023 Holiday Infographic here. 

Decoding the 2023 Holiday Analysis

Holiday 2022 witnessed a 3% drop compared to the previous year, attributed to reduced spending per customer, fewer transactions per customer, and slower growth in average transaction size. Given the lingering economic challenges from the previous year, brands need inventive strategies to incentivize consumer spending during this holiday season.

Interestingly, a shift in spending behavior has been observed, with holiday spend moving back to brick-and-mortar retailers from online channels. This contrasts with the Back-to-School analysis by Cardlytics, which saw online spending was up for both B&M.coms and online only brands. This shift underscores the significance of an omni-channel approach, ensuring that brands are present where consumers choose to shop, whether in-store or online.

Early Birds and Mass Merchandisers

An intriguing trend emerging from the analysis is the increasing percentage of spending occurring within the initial three weeks of the holiday season year over year. Consumers are diving into their shopping lists earlier and earlier, demanding that brands engage with them during this period.

When it comes to dominating the holiday market share, Mass Merchandisers are the frontrunners, holding a whopping 58% of the total wallet share. As consumers grow more price-conscious, Mass Merchandisers are poised to leverage this shift in consumer behavior to their advantage. The Apparel category is also gaining momentum, presenting an opportunity for brands to bolster their presence and profits.

Unwrap the secret to success with Cardlytics 

Through strategic partnerships with banks, Cardlytics possesses an extraordinary advantage - access to the transaction data of over 186 million consumers. This invaluable resource empowers brands with a detailed understanding of consumer purchasing patterns, offering a holistic view of when, where, and how people shop.

The holiday season is approaching rapidly, and with it comes the opportunity for retail brands to acquire new customers and grow loyalty with existing shoppers. In this competitive landscape, making informed decisions is crucial to stand out from the crowd. That's where Cardlytics comes into play, providing real insights from real bank customers to support retail brands in navigating the complexities of the upcoming holiday season. Get started today.

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• The cost-of-living crisis sees the return of the staycation with spend up 20% on domestic holidays
• Tighter budgets have seen travellers swap to budget airlines with the number of trips for these brands increasing 23% year-on-year
• Brits have been looking for ways to save with a massive 50% increase in offers and rewards claimed on travel purchases compared to last year

Consumers haven’t cut back on their holidays but are looking for cheaper options and deals as the cost-of-living crisis takes hold, according to new data from advertising platform Cardlytics.

The data, based on transactions from over 20 million UK bank accounts, shows that the number of holidays booked between April and June increased 7% on last year. However, average spend on travel across the board has flatlined. With just a 1% increase in average transaction values year-on-year, it seems that consumers are looking for ways to get away without breaking the bank.

For many this means holidaying closer to home, with staycations on the rise as domestic holiday spend increases 20% year on year. After a boom during the pandemic, UK-based getaways are back on the map with the number of trips up 40% when compared to the first quarter of this year, and up a further 4% on the same time period in 2022.

For those looking to go further afield for less, budget airlines have been the way to go. Average spend at these airlines has increased by 3% compared to last year. Whilst some of this can be attributed to increasing prices, the number of trips people have booked with these brands has followed a similar trajectory, rising a massive 23% compared to 2022. As travelers trade down, long-haul airlines have seen slower growth in the number of bookings at just 2% increase year-on-year. Whilst average spend with these brands has seen an uptick of 6% since last year, the lower number of trips indicates this increase is likely due to fuel increases and inflation leading to increased costs.

Getting the best rewards and discounts is top of mind for consumers looking to save on their summer travel, as cashback redemptions on these purchases see a 50% increase between April and June compared to last year.

Many holidaymakers have turned to package deals for not only value but convenience. Whilst average spend is down 2% year-on-year, the number of package holidays booked is up 13% on last year showing that consumers are still purchasing these deals, but they’re looking for the cheapest options.

Reinforcing that trend, online travel agents have also seen growth, with the number of trips booked up 22% on last year. This is coincided with a 5% rise on average transaction values, with inflation likely the cause behind this.

Hannah Collins at Cardlytics said: “With the summer break well under way, we are now starting to see the real effect the cost-of-living crisis is having on consumer travel spending. Whilst it’s positive that people are still booking getaways, price is becoming an increasingly important differentiator. Travel brands need to show they understand customer needs with tailored discounts and rewards in the channels they use most to encourage spend. This will be key in attracting those seeking a last-minute summer deal or a cheaper Autumn break.”

Methodology

Cardlytics data is based on spending from over 20 million UK bank accounts. This data is based on spending between (unless stated):

• 30th March – 29th June 2023
• 31st March – 30th June 2022

About Cardlytics

Cardlytics (NASDAQ: CDLX) is a digital advertising platform. We partner with financial institutions to run their banking rewards programs that promote customer loyalty and deepen banking relationships. In turn, we have a secure view into where and when consumers are spending their money. We use these insights to help marketers identify, reach, and influence likely buyers at scale, as well as measure the true sales impact of marketing campaigns. Headquartered in Atlanta, Cardlytics has offices in Palo Alto, New York, Los Angeles, and London. Learn more at www.cardlytics.com.

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• January saw gym subscriptions increase 14% and balanced meal kits rise by 11% compared to December as consumers look to kick off a healthier new year
• Gym subscriptions have remained resilient seeing year-on-year spend increase 12%
• But meal-kits, fruit and vegetable delivery boxes and at-home gym plans have all seen weaker spend compared to January 2022 as consumers cut back on non-essentials

New year’s resolutions drive an increase in spending on health and fitness subscriptions in January, but overall spend is down year-on-year driven by cost-of-living cutbacks, according to new data from digital advertising platform, Cardlytics.

New spend data from over 24 million UK bank accounts revealed that spending on gym subscriptions increased 14%, whilst at home workout plans and healthy meal kits both rose by 11% between December and January.

Traditional gyms have come out on top with continued increases in spend year-on-year, rising 12% from January 2022. But the same can’t be said for all health and fitness related subscriptions as consumers reign in their spending amid the cost-of living crisis.

Despite the expected month-on-month increase in January as people kick off their healthy habits for 2023, tighter budgets mean that demand for at home gym plans has declined when compared to last year, with spending falling 25%.

New year means new members for gyms - but at-home subscriptions face a decline

Fitness goals have long been a part of new year’s resolutions for many, and this year has been no different. Traditional gyms such as David Lloyd and LA Fitness saw a 13% increase in transactions when compared to December which drove an 18% uptick in overall spend.

But whilst gym subscriptions are on the up, at-home fitness subscriptions face a decline. The pandemic drove a boom in sign-ups with transactions increasing 1070% since 2019¹ however this success has been difficult to maintain and spend this January is down 25% on last year as consumers leave behind their living room workouts.

Meal kits remain convenient for the health conscious

Healthier eating is always top of the agenda in January, and one of the easiest ways for people to switch up their diets is with balanced meal kits - which saw an 11% rise on December. However, compared to last year, balanced meal plans, and grocery delivery boxes are down, as spending on fruit and vegetable boxes fell 16% whilst meal kits fell 9% on January 2022.

Since 2019, meal plan subscriptions such as Hello Fresh, Mindful Chef and Gousto have seen an astronomic growth in popularity with spend rising by 379%². But this trajectory may have reached its turning point as consumers cut-back on nonessentials with spend declining 9% compared to January last year.

Grocery boxes of fruit and vegetable deliveries have faced similar difficulties when it comes to subscriptions as the cost-of-living crisis drives up the price of produce. Spend fell 20% between December and January and is down 16% on last year.

January typically represents a clean slate for consumers who use the new year as an opportunity to not only set goals but also assess their finances and evaluate areas to cut back.

The convenience of subscriptions allows brands to capitalise on such resolutions but this year’s dampened spending, particularly across the health and fitness space, could provide an indication of what retailers can expect in 2023.

Brands need to recognise and understand changing consumer needs in the face of rising costs, offering tailored promotions, cashback and discounts on the subscriptions that matter most, to help build loyalty in the long term."

Sharina Mutreja, Partnerships Director, UK

About Cardlytics

Cardlytics (NASDAQ: CDLX) is a digital advertising platform. We partner with financial institutions to run their rewards programs that promote customer loyalty and deepen relationships. In turn, we have a secure view into where and when consumers are spending their money. We use these insights to help marketers identify, reach, and influence likely buyers at scale, as well as measure the true sales impact of marketing campaigns. Headquartered in Atlanta, Cardlytics has offices in Palo Alto, Los Angeles, New York and London. Learn more at www.cardlytics.com.

¹ Transactions in January 2019 compared to the same period in January 2023

² Spend in January 2019 compared to the same period in January 2023

The travel industry has shaken off stagnation, showing growth in the first three months of this year according to new data from digital advertising platform, Cardlytics.

New spend data from over 24 million UK bank accounts for the period 1 st January to 31 st March 2023 has revealed that spend on flights and holidays has risen 27% in the first three months of this year compared with 2022, an increase of 40% from pre-pandemic levels.

For airlines, the number of transactions rose by 36% year-on-year between 1 st January and 31 st March 2023, while bookings for package holidays were up by over a quarter (27%) over the same period.

However, as consumers continue to feel the impact of rising inflation, there are signs that people are seeking out budget-friendly options. Low-cost airlines saw spend rising at a faster rate than the rest of the industry, up 42% year-on-year in Q1, compared with a 29% increase for other airlines.

At the same time, the number of people redeeming discounts and offers through their bank accounts for travel purchases rose sharply at 79% year-on-year as customers look for deals and offers to mitigate the impact of rising prices.

Whilst spend is on the rise, average transaction values have grown at a slower rate than inflation, indicating that consumers are seeking out cheaper alternatives for holidays and looking for lower-cost deals. The average amount people spent on standard flights fell by 2% year-on-year to £342.69, while spend on budget airlines grew by 12% to £137.50. Package holidays grew by 7% year-on-year to an average of £538.68 per transaction.

Shifting away from pandemic habits

Last year’s travel disruption has left an impact on consumer purchase habits with cancellations and refund difficulties, leading to the number of travel purchases made through comparison sites falling 12% in 2022. Whilst aggregators have seen a slight recovery in the first quarter of 2023, transactions are still down 2% on pre-pandemic figures.

In contrast, direct bookings through providers have increased compared to pre-pandemic levels, with transactions directly through airlines increasing 50%, while package holidays have seen a 41% growth in transactions since 2020.

The pandemic saw the rise of the domestic holiday – quickly dubbed the ‘staycation’ – and transactions at UK holiday providers such as Parkdean, Centreparcs, Butlins and Haven Holidays peaking last year, with 692,000 transactions in the first three months of 2022. In contrast, this year transactions on such trips fell by 23%. International package holidays grew by 27% over the same period, as people swapped local breaks for more exotic destinations.

Mike Glegg, VP of Sales at Cardlytics, commented:

“The travel industry will be buoyed by strong consumer spend in the first quarter of 2023 following a turbulent few years of lockdowns, cancellations and delays.

“It’s encouraging to see increased confidence in bookings despite tighter budgets and rising prices, but aggregators will now be looking to capitalise on this and win-back trust from their customer base after last summer’s disruption.

“Travel brands will now need to consider how to reward loyal customers and continue winning new segments of the market. Investing in discounts and loyalty programs will be critical to achieving this, demonstrating their value for consumers, particularly as rising prices continue to constrict budgets.”

Atlanta, GA – October 18, 2022 – Cardlytics, Inc., (NASDAQ: CDLX), an advertising platform in banks’ digital channels, today announced that its third quarter ended September 30, 2022 financial results will be released on Tuesday, November 1, 2022, after market close. The company will host a conference call and webcast at 5:00 PM (ET) / 2:00 PM (PT) to discuss the company’s financial results.

A live audio webcast of the event will be available on the Cardlytics Investor Relations website at http://ir.cardlytics.com/. A live dial-in will be available after registering at this link. Shortly after the conclusion of the call, a replay of this conference call will be available through 8:00 PM ET on November 8, 2022 on the Cardlytics Investor Relations website at http://ir.cardlytics.com/.

About Cardlytics

Cardlytics (NASDAQ: CDLX) is a digital advertising platform. We partner with financial institutions to run their rewards programs that promote customer loyalty and deepen relationships. In turn, we have a secure view into where and when consumers are spending their money. We use these insights to help marketers identify, reach, and influence likely buyers at scale, as well as measure the true sales impact of marketing campaigns. Headquartered in Atlanta, Cardlytics has offices in Palo Alto, Los Angeles, New York, and London.  Learn more at www.cardlytics.com.

Social activities fuel consumer spending in Q1

Social activities, especially travel and dining, topped the list of consumer spending for Q1, during an otherwise difficult quarter. Overall, consumer spending grew by just 1% year-over-year, continuing the trend of total lower growth in spending over each of the last five quarters.

Not surprisingly, many categories saw dips in spending, such as retail – which experienced a decline of 2% year-over-year. The breakout exceptions were around activities that continue to rebound from the isolation of the pandemic.

Where are consumers willing to spend, despite inflationary pressure? What are the pockets of growth? These are the questions we examined as part of the Q1 2023 Cardlyitcs consumer spending report. Cardlytics powers digital advertising for banks and financial partners, and has insight into one of every two credit card swipes in the U.S. We share this Purchase Intelligence of where, when and how consumers are shopping to help marketers identify opportunities to reach people with relevant ads. Here are some of the most compelling findings from consumer spending in Q1 2023.

Travel is still the ticket

No area was harder hit in the pandemic than travel, and no area continues to rebound as strongly.  Even as travel expenses have increased – including airfares driven up by fuel prices – there is no decrease in demand. In fact, both spend per consumer and trips per consumer have been increasing since their lows at the outset of the pandemic in Q2 2020 (72% for spend per consumer and 71% for trips per consumer). People continue to want to travel. The biggest gainers are in the areas that were hardest hit – airlines are up 17% and cruise lines are up 94%, both year over year.

Helped by inflation, spending on travel now exceeds pre-COVID levels, up 405% from q2 2020. In spite of inflation, the number of trips also continues to rise, up 319% from Q2 2020.  

Restaurants are a mixed bag

Restaurant spending in Q1 was slightly up year-over-year at 5% as a category, and relatively flat from Q4. But the level of service at the restaurant matters. Full-service restaurants showed increases both in spending amount and frequency of visits, outperforming all other forms of food service.  

As many restaurants struggled during the pandemic, full-service restaurant spending fell in Q2 2020, dropping to about equal with food delivery and slightly higher than limited-services restaurants, which includes fast food. Since then, spending on full-service restaurants has increased 85% (Q2 2020 to Q1 2023), compared to just 18% for limited-service restaurants over the same time period, bringing full-service restaurant spending now past pre-pandemic levels.  

As fatigue from the pandemic and isolation lingers, people are willing to spend more, more often, on the social aspect of eating out among other people.

Easing off the gas pedal

Consumers are becoming less thirsty for gas. Fuel spending is down 9% year over year. In Q1, the spend per customer decreased from Q4 by 4%, likely driven by recent decreases in gas prices. The decline in spending began in Q3 of last year, as gas prices rose and hit recent highs last summer. Now as gas prices move lower,_, instead of seeing an increase in the number of transactions per consumer, as you might expect with falling prices, there was a decrease per customer in the number of transactions (-6% transactions per customer from Q3).

Consumers are choosing to fill up less frequently, even as gas prices have fallen slightly over the past few quarters. In fact, the proportion of customers shopping for gas decreased from 68% of all consumers in Q3 2022 to 66% in Q4 to 64% in Q1.

How do we know all this?

We have a “whole wallet” view into consumer purchase behavior, with insights into one out of every two credit card swipes in the U.S. Cardlytics offers a brand-safe, fraud-free advertising platform inside our financial institution partners’ digital channels. That means we can predict future shopping preferences using past purchase behavior. Our insights help brands reach people and positively influence their purchase decisions with relevant ads that reward them with cash back, frictionlessly. 

Class Is In-Session

Back-to-School continues to be one of the largest shopping events of the year, and once again, Cardlytics is here to inform on the latest consumer trends. Our analysis of over $122B in BTS spend over the last 3 years sheds light on YoY trends, category-level insights, and more. Now more than ever, brands should leverage these insights to create informed, strategic marketing plans and drive long-term customer loyalty.

Back to Basics

While spend is up 3.8% YoY, it is growing at a slower pace than previously observed. Not exactly a surprise given the COVID lockdown, but it seems that the spend bounce back we saw last year has slowed, especially considering the current economic pressures.
The same slow in overall spend can be observed across purchase volume as well, indicating consumers may be consolidating their Back-to-School errands with other shopping trips (e.g. grocery, home, etc.)

DOWNLOAD THE INFOGRAPHIC

Brick and Mortar Shoppers Played Hooky This Season

Online spending is up for both B&M.coms and online only brands, indicating that the shift initially brought on by COVID is likely permanent. Brands should consider an omni-channel approach in order to engage the customer where they are spending.

Mass Merchandisers Pass with Flying Colors

Mass Merch continues to dominate as inflation drives customers to keep price top of mind. While all other subcategory spend is down in 2022, Mass Merchandisers are up 9.2% vs. 2021. In fact, Mass Merch is the only category to have YoY growth across all metrics – spend, trips, and customers – in the last 2 years. Branded retailers should ramp up engagement with existing customers to prevent churn. Get the data.

Cardlytics Helps You Make the Grade

As consumer spend begins to slow, and pressure mounts from competition, it’s never been more important to create value for the consumer, and drive brand loyalty. CDLX’ whole-wallet-view of customer spend can help identify your most relevant target audiences and unlock incremental sales – and we can prove it.

Request the data: 2023 Back to School Infographic

Small Bytes: Your serving of bite-sized analytics for your business

With inflation at an all-time high, have consumers shifted their dining behaviors? Cardlytics has the purchase data to uncover the most relevant insights within the Restaurant category and beyond.

Does Third Party Delivery’s continued growth indicate a more permanent post-pandemic prioritization of ease & convenience?

• Fast Casual category has been declining since their pandemic peak
• Upscale Dining is experiencing minimal decline vs. pre-pandemic
• 3rd Party Delivery is the only category with growth

Casual Dining bucks category trend when it comes to in-restaurant dining.

• While in-restaurant Casual Dining hasn't returned to pre-pandemic levels, it is the only category growing YoY (up 2.25 pts since 2021).
• Fast Casual in-person dining continues to fall; 2022 was down 3.4 pts from 2019.
• Online trip share has been growing across categories YoY – but at Fast Casual (+1.76 pts) and, interestingly, Upscale Dining (+1.29 pts) in particular.

Consumer shopping behavior is more unpredictable than ever, but restaurant brands can rely on performance marketing to help drive direct sales both online and in-restaurant. No matter where your customers are eating, Cardlytics can convert sales on behalf of your brand – and we can prove it.

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COVID’s long-term impact on consumer spending

As the world recovers from the COVID-19 pandemic, some pandemic lifestyle changes like mask-wearing in the U.S. remain common. America’s spending habits, however, are starting to return to pre-pandemic trends. 

After two years of disruption, we took a look back at COVID’s long-term impact and made it the focus of our quarterly State of Spend report. We were curious: Which industries have returned to normal and continue to grow, and which still suffer? Which became disruptors? And is inflation affecting buying patterns?

Cardlytics powers digital advertising for banks and financial partners, and has insight into one of every two credit card swipes in the U.S. We share this Purchase Intelligence of where, when and how consumers are shopping to help marketers identify opportunities to reach people with relevant ads. Here are some of the most compelling findings from consumer spending from 2019 through 2022.

Inflation persists

When looking at overall spending and transactions last year, a 5% year-over-year (YoY) increase in total spending occurred from 2021 to 2022 but there was only a 1% increase in the number of transactions, a key indicator of inflation. What’s more, when comparing 2022 to before the pandemic in 2019, we saw a 24% increase in household spending but only a 4% increase in transactions. Consumers are making relatively fewer, more expensive purchases. Despite inflation, and in part fueled by inflation, consumer spending in the United States continues to rise. So, how are people using their discretionary funds? 

Office Supplies sales thrive with work-from-home policies

A deeper look shows how COVID has affected consumer spending specific categories — for better or worse. Office Supplies, for example, had steady growth throughout 2020 as people scrambled to equip home offices and stay productive during lockdowns. Then as 2021 set in with Delta and other COVID variants, sales of office essentials continued to grow strong. 

In 2022, as COVID subsided, and return-to-office policies were implemented — or people had their home offices fully set up — Office Supply sales dropped 32% versus 2021. Spend and transaction volumes of Office Supplies show that people are making more frequent, lower-dollar purchases, with transaction volumes up 15% versus 2019, but sales up only 2%.

Restaurant Delivery is no longer just pizza delivery

One standout category skyrocketed and was transformed by COVID: Restaurant Delivery. The category saw unprecedented growth and arguably a decade worth of technological innovation in a matter of months. 

Restaurant Delivery purchases jumped 97% YoY from 2019-2020, with an overall 184% growth in 2022 versus 2019. Although the category began to plateau in 2022 as restaurants reopened, deliveries didn’t decrease. With similar increases in both spend and transaction volume, both purchase amounts and frequency of Restaurant Delivery continue to grow.  

Travel dips but recovers; Entertainment stays steady

Several categories that have been faltering are showing strong signs of recovery. To no one’s surprise, the onset of COVID hammered Travel spending most of all. Yet in 2022, Travel and Entertainment enjoyed a recovery, with spending up 27% from the previous year. Airlines have nearly recovered to the state they were in 2019. Spending is up 4% from 2019 to 2022; however, transaction volume is down 10%. There is lower occupancy, but everything is costing more. 

Categories like Concerts, Theater, Sporting Events, and Tickets are holding relatively steady on pricing, as both the number of transactions and dollars spent show that this industry is beginning to thrive again. Entertainment spending also continues to rise quarter by quarter, as do offer activation rates and ad campaign spends. 

Canine company, DIY food, and outdoor adventure

Our pandemic purchases reflected our adoption of millions of dogs and other pets, with a 51% increase in Pet spending from 2019 to 2022. Also, as lockdowns went into effect in the spring of 2020 to slow the spread of the coronavirus and reduce stress, reports emerged of a global gardening boom, with plants, flowers, vegetables and herbs sprouting in backyards and on balconies. Our data backs up the narrative: there was a 34% increase in Home and Garden spending from 2019 to 2022. We also ventured outdoors for safe recreation and fresh air, with a 33% increase in spending on Sporting & Outdoor Goods during the same period. 

How do we know all this?

We have a “whole wallet” view into consumer purchase behavior, with insights into one out of every two credit card swipes in the U.S. Cardlytics offers a brand-safe, fraud-free advertising platform inside our financial institution partners’ digital channels. That means we can predict future shopping preferences using past purchase behavior. Our insights help brands reach people and positively influence their purchase decisions with relevant ads that reward them with cash back, frictionlessly.