Why Crowdfunding Campaigns Struggle During the Holiday Season (and How to Succeed)

The November-December period is known for massive retail events like Black Friday and Christmas shopping sprees. For most businesses, this means a sales surge. However, crowdfunding campaigns, especially on platforms like Kickstarter, often experience a dip during this time. Here's why:

1. Kickstarter Statistics

Let's look at Kickstarter Weekly Data from PledgeBox. 

Kickstarter Weekly Data (20241031-20241107)

Category	Total Online Projects	New Projects	Successful Projects	Total Pledged Amount	Total Backers	Average Project Amount	Funding Change
All Categories	4,441	714	1,795	$78,925,143	632,107	$43,969	-$8,069,043
Technology	422	59	135	$23,297,342	64,446	$172,573	-$2,725,681
Design	390	55	208	$13,061,563	82,519	$62,796	-$3,649,577
Games	1,194	198	634	$28,061,212	318,300	$44,261	-$1,359,942
Others	2,435	402	818	$14,505,026	166,842	$17,732	$333,843

Kickstarter Weekly Data (20241205-20241212) 

Category	Total Online Projects	New Projects	Successful Projects	Total Pledged Amount	Total Backers	Average Project Amount	Funding Change
All Categories	3,457	492	1,222	$39,041,441	356,506	$31,949	-$9,685,517
Technology	424	52	143	$9,764,068	53,877	$68,280	-$2,230,855
Design	348	60	164	$7,567,386	57,227	$46,143	-$3,197,064
Games	865	138	431	$12,085,726	150,094	$28,041	-$1,793,855
Others	1,820	242	484	$9,624,261	95,308	$19,885	-$2,463,742

Kickstarter Weekly Data (20250102-20250109)

Category	Total Online Projects	New Projects	Successful Projects	Total Pledged Amount	Total Backers	Average Project Amount	Funding Change
All Categories	2,698	575	854	$25,404,712	211,002	$29,748	$1,322,065
Technology	343	63	94	$8,391,131	40,733	$89,267	$1,070,932
Design	234	41	119	$7,301,843	52,103	$61,360	$1,463,996
Games	578	132	258	$3,451,867	50,811	$13,379	$110,467
Others	1,543	339	383	$6,259,872	67,355	$16,344	-$1,323,329

Based on our close observation of the Kickstarter platform's online projects over the past few months, we have noticed a significant decline across the board, including all categories, as well as the technology and design categories.

Comparing the data from early November 2024 to early January 2025, the total number of online projects across the platform has decreased by 1,743, and the total amount of funds raised online has dropped by $53.52 million, representing a 67% decrease.

During the peak period in March and April last year, the total amount of funds raised was at least three times higher than the current level.

2. Key Challenges Faced by Crowdfunding Projects During Holidays

Shifting Consumer Attention

Black Friday, Christmas, and New Year's Day holiday sales often shift people's focus toward shopping and consumption rather than investing in crowdfunding projects still in development. Customer attention is drawn to various promotional events, making them more likely to purchase established, market-ready products during these periods. As a result, crowdfunding projects may experience a lack of attention.

Crowdfunding campaigns rely on continuous promotion and marketing efforts to capture people's interest. However, during these major sales periods, your crowdfunding campaign can become significantly more challenging.

Limited Online Engagement

During the holiday season, people tend to spend more time at gatherings with family and friends or participating in other festive activities. This means their online time is relatively limited, making it less likely that they will notice your project.

Crowdfunding project teams need to adjust their promotional strategies and plan marketing efforts in advance including activities like pre-launch warm-ups and early campaign launches to make the most of consumers' available online time.

Budget Constraints

Holiday spending focuses on gifts and essentials, leaving little room for supporting new projects. High-cost campaigns are particularly vulnerable.

Increased Advertising Costs

The surge in holiday advertising causes social media ad costs to spike, making it harder for campaigns with limited budgets to compete effectively.

Media and Influencer Inaccessibility

Media outlets and influencers are often preoccupied with covering holiday promotions, making them less responsive to crowdfunding outreach.

3. Solutions to Navigate Holiday Crowdfunding Challenges

- Launch Before or After Peak Holiday Season: Consider launching in September or January when consumer spending normalizes.

- Pre-Holiday Warm-Up: Build anticipation through pre-launch events and teaser content before the holiday chaos begins.

- Optimize Pricing Strategies: Offer budget-friendly tiers or limited-time holiday deals to cater to consumers’ constrained budgets.

- Micro-targeted Ads: Focus on niche groups rather than broad audiences to get more value from your advertising budget.

- Collaborate Early: Reach out to media outlets and key influencers well in advance to secure coverage before the busy season.

Despite challenges, holiday periods can offer opportunities due to lower competition among active projects. Strategic planning and creative marketing can help crowdfunding campaigns stand out, attract backers, and make the most of this unique season.

4. Conclusion

Crowdfunding during the holiday season presents unique challenges, but with proper planning and creative strategies, campaigns can still thrive. By launching at the right time, adjusting marketing tactics, and offering appealing rewards, project creators can maximize their potential even amidst holiday distractions. Remember, strategic targeting and early engagement are key to unlocking backer support.

5. FAQs

1. Why do crowdfunding campaigns perform poorly during holidays?

Consumer attention shifts to immediate purchases, holiday expenses, and gift buying, reducing interest in future-oriented crowdfunding projects.

2. When is the best time to launch a campaign to avoid holiday pitfalls?

September or early January is ideal, as consumer spending is less constrained, and competition with holiday promotions is minimal.

3. How can I lower ad costs during the holiday season?

Focus on micro-targeting niche audiences and utilize organic marketing through early collaboration with influencers and media.

4. Are there any advantages to launching during the holidays?

Yes, fewer active campaigns may mean less competition. Strategic offers, like holiday-themed rewards, can help capture attention.

5. How soon should I start planning for a holiday crowdfunding campaign?

Begin outreach and preparation at least 3-6 months before the launch to build anticipation and secure marketing opportunities.