Pumpkin Spice Season Meets Programmatic Advertising

Pumpkin spice season has officially arrived! This cozy time of year celebrates the essence of fall, especially through the warm blend of spices like cinnamon, nutmeg, ginger, cloves, and allspice that give pumpkin spice its distinct flavor. While pumpkin spice lattes are a favorite, this flavor extends far beyond coffee. You can find it in various baked goods: muffins, cakes, cookies, candles, skincare products, and even savory dishes.

The attraction of pumpkin spice is its nostalgic and comforting feel, reminding people of crisp air, falling leaves, and festive holidays like Halloween and Thanksgiving. But pumpkin spice isn’t just for pies or drinks anymore. The flavor has made its way into various products, including bread, yogurt, coffee creamer, beer, cereal, and even unexpected items like Spam and hummus.

Beyond taste, pumpkin spice has inspired popular candle scents and bath products. A quick search for “pumpkin spice” on Target’s website shows over 2,300 results. In New York, pumpkin-shaped balloons appear in the Macy’s Thanksgiving Day Parade. Between July 2022 and July 2023, pumpkin spice product sales hit over $800 million, according to NielsenIQ. And this is only part of the pumpkin spice phenomenon.

While we love to enjoy pumpkin spice, this article also highlights the power of programmatic advertising during this season. Now, let’s dive into the data!

The Rise of Pumpkin Spice in Numbers

The growth of pumpkin spice season can be attributed to its strong connection to comfort, nostalgia, and the increasing demand for fall-inspired flavors. This seasonal passion typically runs through November. It has significant growth pushed by food producers and restaurants that are expanding their pumpkin-themed offerings.

According to The Food Institute, the pumpkin spice market will reach $2.4 billion by 2031. This prediction is reinforced by early data for 2024, which shows unprecedented growth. In just the short period between August 18 and September 4, over 1,460 new pumpkin products appeared on U.S. restaurant menus (according to SpotOn), with major chains like Starbucks leading the charge by launching their seasonal drinks as early as August 22.

The popularity of pumpkin spice extends beyond food and beverages, with a large online community supporting the trend year-round. For example, several pumpkin spice-themed Facebook groups boast over 50,000 members (according to CNN). According to Nielsen, this enthusiasm translates to significant consumer spending, as Americans reportedly spend more than $500 million on pumpkin spice products annually.

Pumpkin spice’s rise mirrors a shift in US programmatic digital display ad spend, where mobile has become the dominant platform. The chart illustrates that mobile ad spending in the U.S. programmatic digital display ad market surged from 39.3% in 2013 to 70.6% in 2023. Meanwhile, desktop’s share shrank from 60.7% to just 12.9%, with Connected TV (CTV) now accounting for 16.5% of the spending.

In 2024, pumpkin spice season ad spending has been significant, driven by its deep association with the autumn months. As a major player in the market, Starbucks has led the charge, launching its fall-themed campaign as early as August, far ahead of its competitors. This early start has helped Starbucks capture the attention of pumpkin spice enthusiasts and take advantage of the early fall buzz.

The overall pumpkin spice market remains large even if we don’t count household items like candles and skincare. Brands understand consumers’ emotional connection with fall, leveraging that bond to enhance their marketing efforts and boost seasonal sales. This emotional appeal, coupled with strategic ad spending, plays a crucial role in engaging consumers who are eager for a comforting and nostalgic experience as the weather cools.

The consumer motivations driving this success can be understood through key need states, which influence quick-service chain visits. The data shows that “cravings” play the biggest role in impulse visits, accounting for 47% of visits, while cravings drive 35% of everyday and special occasion visits. “Comfort” ranks higher for everyday occasions (19%) than for impulse visits (16%), further underscoring the connection between the cozy pumpkin spice season and the comfort-driven consumer mentality.

Brands ensure that the pumpkin spice season remains one of the year’s most anticipated and commercially successful times. How can they do it? Combining emotional triggers such as comfort, convenience, and desire with powerful advertising campaigns. During this season, Starbucks has a secret weapon: the Pumpkin Spice Latte. This cozy, fan-favorite drink accounts for up to 10% of the company’s overall sales, according to Axios.

Ad Spend in Autumn Festive Season 2023

Advertisers in the United States ramped up their efforts during the holiday season for the 2023 festive season, with Thanksgiving serving as a major focal point. By late November, holiday retail ad spending was set to surpass $105 billion (ClickSend), fueled by Thanksgiving and Black Friday campaigns. Digital marketing, especially through email and SMS, took center stage, driving a 16.9% surge in sales from SMS campaigns alone compared to 2022.

Retailers centered their Thanksgiving promotions on food, home decor, and family gatherings, offering discounts to meet consumer needs amidst inflation. Big names like Walmart, Aldi, and Target ran extensive campaigns, particularly for discounted Thanksgiving meal bundles.

In the same year, Halloween saw record-breaking ad spend. Overall, Halloween sales were projected to reach $12.2 billion (Shalion), a significant jump from $10.6 billion in 2022. This surge was largely due to 73% of Americans participating in Halloween activities. Spending was led by costumes ($4.1 billion), decorations ($3.9 billion), and candy ($3.6 billion). Costume spending, up 9.2% from the previous year, was a core driver of the overall growth. Discount stores and specialty shops reaped the benefits of this trend.

Social media platforms like TikTok and Instagram played a crucial role in marketing, especially for costume ideas and product recommendations, further solidifying their importance in digital advertising.

Seasonal Strategies for Success with DecenterAds DSP

To boost sales and brand awareness this season, leverage DecenterAds’ advanced demand side platform, DSP DecenterAds, to create an effective programmatic strategy. Here’s how:

• Utilize the Full Suite of Tools

Use the full DecenterAds DSP advertising tools suite to engage customers at every stage of their buying journey. These tools help you reach your audience effectively from initial interest to final purchase.

• Optimize Brand Pages and Product Descriptions

Craft compelling sponsored brand titles and product descriptions that highlight savings and key benefits. Use DecenterAds’ analytics to ensure these pages target the right audience. This strategy improves impressions, clicks, and return on ad spend.

• Plan Your Budget and Inventory

Secure your budget early and launch seasonal products a month in advance. Identify trending items to maximize potential during discount periods.

• Attract Attention with Sponsored Products

Use sponsored products to capture customer interest and drive sales.

• Remarket with Display Ads

In the lead-up to discount season, recapture missed opportunities by remarketing to potential customers with Display Ads.

Run multiple ad types simultaneously, including sponsored products and brands, for optimal results during seasonal events like Thanksgiving and Halloween. With the right approach, brands can maximize holiday season e-commerce spending and achieve remarkable programmatic display ad spending growth. DecenterAds offers advanced tools to tap into the seasonal successful programmatic aspects that drive the market during this unique time of year.

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