As the summer season draws to a close, students of all ages are gearing up to head back to school. For marketers, the back to school season is one of the biggest annual opportunities to reach both new and returning customers.
The National Retail Federation and Prosper Insights & Analytics notes that back to school spending is expected to reach an unparalleled $41.5 billion, up from $36.9 billion last year, According to The Shelf, despite the current economic state, consumers are still prioritizing back to school spending in an inflation-focused world – while simultaneously searching for promotions and deals. Some have a less optimistic outlook, saying that spending may drop this season compared to past years – emphasizing the importance of capturing the attention of more budget-conscious consumers.
A solid contextual strategy can make the difference in reaching consumers – particularly at a time when the market can be oversaturated with offerings and deals. Seeing contextually relevant content as they set off in search of back to school products can potentially help consumers remember brands and make corresponding purchasing decisions. In particular, strategies like Connatix’s Deep Contextual™ offering goes the extra mile in analytics at the page and video level, providing more specific insights and contextual categories to help advertisers reach the right audiences at the right time.
Given the state of consumer spending, it’s vital for marketers to understand the current back-to-school season retail spending trends and to gain insight on which categories are the most influential for back to school planning. Leveraging our own proprietary data, we took look back at advertiser's contextual spend to identify top categories CMO's should keep in mind during back to school season.
While not surprising given the time of year, the parenting and kids category continues to be a top spender. From school supplies to toys and games, these items are a vital component of back to school shopping. Not only are school supplies some of the most relevant products parents buy for kids at this time, but during back to school season there can be a heightened sense of intention in enriching child experiences.
From July 2022 to July 2023, contextual spending in the category parenting and kids saw a 39.24% growth year-over-year and was the 7th highest spending category in July 2023.
Technology is a staple in modern day education. According to Capital One Shopping, households will spend the largest portion of back-to-school budgets on electronics and technology. The National Retail Federation supports this claim, saying that 69% of people will be purchasing electronics and other technology. Laptops, tablets, calculators, electronics accessories, headphones and speakers, and smartphones are the products most shoppers are looking for.
From our data we found that technology was the 6th highest spending category, accounting for 4% of all contextually targeted advertiser spend for that month out of dozens of categories.
Every child wants new clothing and accessories to start the school year with, so the style and fashion category has majorly increased this year in terms of contextually targeted advertiser spend. As prices rise, brands are running increased promotions and discounts – attempting to appeal to parents and families as they prioritize updating wardrobes on a budget. According to Connatix data, from July 2022 to July 2023, contextually targeted spending in the category style + fashion saw an 841.37% growth year over year. In July 2023, style + fashion accounted for 11% of our total contextual advertiser spend. While this may seem insignificant, contextual targeting spend can fall into dozens to hundreds of categories, making this percentage a large portion of overall ad spend.
Going back to school means parents are back to packing more lunches and snacks for their children, as well as encouraging active lifestyles. From July 2022 to July 2023, contextual targeted spending in the category healthy living saw a 346.99% growth year over year, accounting for 5% of all contextually targeted advertiser spend for the month of June.
In the end, there are plenty of industries in which marketers have a huge opportunity to reach both new and returning customers for the back to school season. A knowledge of which contextual categories are seeing increased spending can be incorporated into a wider contextual strategy. Connatix’s Deep Contextual, can help advertisers reach and appeal to their target audiences more effectively. By crafting targeted ads that speak to the interests and behaviors of both students and parents, you can drive conversions and boost your bottom line during this important time of year.