Fiverr’s latest holiday shopping research 2024 has revealed significant shifts in marketing strategies among Australian businesses, driven by evolving privacy laws, economic pressures, and changing consumer priorities.
Amid impending privacy regulations set to align with Europe’s stringent GDPR laws, 24.8 per cent of medium-sized businesses surveyed are scaling back on targeted advertising. It seems that they are prioritising compliance and long-term sustainability over traditional data-driven marketing methods.
“The upcoming privacy regulations are really pushing businesses, especially mid-sized ones, to rethink how they approach advertising,” said Gali Arnon, Chief Business Officer at Fiverr. “With the rising costs and risks tied to data-driven advertising, along with the new challenges around consent management, companies are being driven to shift toward more sustainable and privacy-compliant marketing strategies. As the definition of personal information broadens and consent rules tighten, brands will have to find new ways to connect with their audiences.”
The research noted that as a result, businesses are reallocating their budgets toward enhancing customer experience and operational efficiency. Notably, 41.8 per cent of Australian companies surveyed are investing in AI across the customer journey, while 40.8 per cent are optimising logistics and offering faster shipping options. Furthermore, 39.8 per cent are turning to content creation and influencer partnerships to build direct, owned channels, reducing reliance on traditional advertising methods.
Workforce planning for the holidays
The research also noted the strategic workforce planning among SMEs for the upcoming holiday season. A total of 42.8 per cent of SME owners, especially in retail, are hiring full-time or part-time staff, while 40.2 per cent are bringing on seasonal employees. Additionally, 40 per cent of businesses are leveraging freelance talent for added flexibility, and 6.8 per cent are turning to AI tools as an alternative to expanding their teams.
Competing with e-commerce giants
The research noted as well how SMEs are handling the challenges of competing with larger e-commerce brands like Shein, Amazon and Temu. Competition from these larger e-commerce brands is a major concern for 44.60 per cent of SMEs, highlighting the immense pressure they face from well-resourced competitors.
“For SMEs, the challenge is not just how to compete, but how to outmanoeuvre competitors with far deeper pockets. It’s a critical time for businesses to invest strategically, ensuring every dollar spent contributes to long-term growth and customer loyalty,” commented Arnon.
Affordability over sustainability for consumers
Another key finding from the research is the shift in consumer priorities, with affordability now outweighing sustainability in purchase decisions in the midst of the current economic challenges. In particular, 50.79 per cent of respondents prioritise good deals, and 41 per cent value free shipping, particularly among women. Despite this, 7.14 per cent still consider sustainable products and 7.74 per cent prioritise ethical brands. This indicates that, despite the focus on affordability, some consumers continue to factor sustainability and ethics into their decision-making.
