This post is sponsored by Amazon Ads
Now more than ever, our homes are an extension of ourselves, and we outfit them the way we would our bodies. This cross-pollination of homeware and fashion is an enduring one, with us having seen our fair share of furniture trends sweep the nation—from cottagecore and grand millennial to our personal favorite—coastal grandma. And whether folks at home are decorating (or redecorating) for the year ahead, there are some macro trends defining the space that brands should be aware of. And with the US home and furniture market segment valued at $229.9 billion in 2022, optimizing for growth is paramount. Especially since the industry is forecasted by Statista to see a 4.5% compounded annual growth rate through 2026.
To better understand what is driving purchase decisions among consumers in the home and furniture category, we sat down with Jay Symonds, Head of Home & Sporting Goods Advertising at Amazon Ads.
Before diving in, we’ve got to ask—what’s your favorite corner of your home at the moment?
Symonds: I recently moved and the house I’m at has this amazing indoor/outdoor hybrid space. The comforts of the indoors intersected with all the best elements of the outdoors, it can’t be beat.
Is there a marketing trend you expect to emerge or continue in the home and furniture market in 2023?
Symonds: One major factor we’re seeing influencing the home furniture category is that, for many of us, our homes are doubling as our offices now too. The good news for furniture brands is that consumers eager to deck out their spaces, be it home offices or otherwise, are open minded when it comes to brand name. Seventy-two percent of US shoppers in a 2022 Kantar and Amazon Ads survey, confirmed as such.
What does this mean for brands looking to reach consumers along their purchase journeys? First, we think it presents an opportunity for brands to tell their story and maximize their reach with upper funnel tactics both on and off Amazon. With solutions like Amazon Streaming TV ads, advertisers can show up alongside quality content on Freevee and premium third-party content with immersive brand messaging. Secondly, advertisers can deploy an always-on strategy to stay top of mind when consumers are ready to make their next purchase. We’d recommend brands consider testing their creative to address these needs with upper funnel tactics on channels like Alexa audio ads and Amazon Music’s ad supported tier too if they’re interested.
How can brands continue to build customer trust and loyalty, despite challenging economic conditions?
Symonds: Now with the Consumer Price Index at an all-time high, inflation is top of mind and shoppers are more price sensitive. However, there is an opportunity to better connect with customers during this time, by telling them your brand story. Ipsos reported that 73% of consumers are willing to continue buying from companies that increase their prices if they feel valued as a customer.
And you don’t need to adjust your budget to increase your reach. Here at Amazon Ads, we wanted to know how re-allocating advertiser budgets from linear TV to Amazon Streaming TV ads might impact reach, so we conducted a Nielsen study. Our incremental reach analysis completed in the US in December 2021 showed that, on average, advertisers can potentially increase their total net media reach by up to 10.5% with this tactic. This incremental reach from Streaming TV ads was generated only by optimizing, rather than increasing, TV budget across different channels. Amazon Streaming TV ads delivered a better viewer experience with less than half the linear TV frequency.
What are some things home brands can do as they embrace today’s supply chain issues?
Symonds: An underrated priority for shoppers right now is availability. According to a 2022 Kantar and Amazon Ads survey just over 21% of shoppers surveyed selected availability/in stock as the most important factor when looking for their furniture pieces. Knowing this, we’d recommend brands include available products in lower funnel activations to help shoppers understand what they can buy now. Many of us have had the immense pleasure of staring down a 6 month wait time for that one sofa to ship. And as lovely as that experience is for general character development, we want to help brands deliver for customers today; “in stock now” has never made for more compelling of brand copy.
Another factor we know consumers are increasingly considering is the assembly involved. The same study found that 69% of surveyed shoppers said assembly assistance and ease of assembly are important to them when considering what furniture they buy. Brands like Thuma and Floyd have really played into this “ease” component that consumers increasingly desire and expect. Brands can consider using video ads to tell their assembly story. Further, are you partnering with a third-party like Handy or TaskRabbit? Feature it. Part of acclimating for the times involves the industry not being synonymous with assembly horror stories and daymares about where that one nail might have gone.
All things considered, brands can find value in both signaling availability with consumers, as well as featuring and amplifying ease of assembly content on the whole. And we just so happen to think that coastal grandmother enthusiasts and skeptics alike, will thank you for it.
Aside from the mainstay trends we discussed here, do you appreciate a fresh take now and again when it comes to the home and furniture industry? Discover how Amazon Ads can help your home business brand grow this year. We’re here for it all.
Jay Symonds is the Head of Home & Sporting Goods Advertising at Amazon Ads, having first joined Amazon in 2014. He has a passion for insight-driven approaches to digital advertising. Most notably so, those that involve understanding signals from consumers to make media more efficient and effective—eliminating waste from media plans by way of not running impressions against irrelevant audiences, and thereby also connecting consumers with their next favorite brand more so seamlessly. Symonds holds a bachelor’s degree from Nottingham Trent University.