TARGET PROMO INSIGHTS & BLACK FRIDAY REVIEW

DIGITS Agency’s Strategies for Success at Target & Exclusive Look at Post-Black Friday Data.

The holiday shopping season is in full swing, and Black Friday has once again provided valuable insights into consumer behavior and retail trends. At DIGITS, we recently hosted a webinar featuring Dave Glaza, Founder & CEO, DIGITS Agency along with Chris Thron, Vice President, Target Retail Media at DIGITS Agency. We’ve closely examined the numbers, strategies, and key takeaways for brands looking to maximize their performance at Target during the most critical time of the year.

Whether you’re an emerging brand or a retail veteran, these insights are crafted to guide you in navigating the complex and ever-evolving landscape of retail media and promotions.

Key Takeaways from the Black Friday Season

Black Friday continues to evolve, with digital leading the charge while traditional in-store shopping trends stabilize. Here are some highlights from the webinar:

Industry Retail Sales Growth: Total retail sales were up by 3.4%, driven largely by digital, which saw a 15% increase year-over-year.
Target’s Approach: While Target leaned into exclusive merchandising, such as Taylor Swift’s highly coveted album and book (sold over 800,000 units!), overall promotional spend was more strategic, focusing on selective deep discounts.
Traffic vs. Basket Size: Store traffic jumped 17%, but the increase was largely driven by smaller transactions, with fewer large-ticket items moving compared to prior years due to the Taylor traffic impact.

2024 Target Promo Trends

Promotions have taken center stage at Target, with a significant shift in how discounts and offers are being deployed.

Key Trends:

Year-to-Date Promo Spend: Up 21% over last year within DIGITS data set, driven by Target’s push to counter inflation and drive loyalty.
Target Circle’s Evolution: Auto-applied deals have streamlined the shopping experience, but have also made it more challenging for brands to ensure promotions are driving true incrementality.
Changing Promo Dynamics: Target’s promotion landscape remains vast and complex, with brands needing to adapt quickly to new tools and shopper behaviors.

DIGITS’ Five Target Promo Strategies for Success in 2024

As always, DIGITS is here to provide actionable insights. Here are five key strategies for boosting your promotional success at Target in 2024:

Leverage Segmented Offers
- Target specific audiences to avoid subsidizing loyal shoppers. For example, focus on category shoppers who haven’t yet purchased your brand.
BOGOs for Incrementality
- Buy-One-Get-One promotions can drive basket size and return on investment by incentivizing additional purchases without excessive subsidization.
Map-Sensitive Discounts
- Utilize Digital Manufacturer Coupons (DFSIs) for categories with strict pricing rules to avoid markdown penalties.
Trip Driver Promotions
- Select a “hero” product to deeply discount and drive traffic while benefiting from the halo effect on your broader assortment.
Retail Media Boosts
- Align retail media investments with your promotional calendar for a targeted, high-impact approach that drives awareness and traffic at just the right moment.

Black Friday and Beyond: Why It’s All About Balance

As Chris shared in the webinar, “Target’s promotional landscape is both vast and complex, and getting it right is key to driving ROI.” This year’s Black Friday demonstrated how combining exclusive merchandising with strategic promotions can deliver wins in both traffic and sales.

But with a shorter holiday season and increasingly deal-savvy consumers, the stakes are higher than ever. To stay ahead, brands need to balance their promotional investments across digital and in-store touchpoints while leveraging advanced data strategies to optimize results.

Watch the Webinar

For a detailed walkthrough of these insights, including case studies, data breakdowns, and additional strategies, watch the full webinar on our DIGITS Agency YouTube Channel.

At DIGITS, we’re here to help brands unlock their potential at Target and beyond. Reach out to us to learn more about how our expertise in retail media and promotions can drive growth for your brand.