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Home Living Newsletter | 🛋️ $1.1B Home Decor Market: Where eCom Brands Can Win

Plus: Why brands using YouTube & Demand Gen grow 32% faster📈

Author

Rafe Houston
May 28, 2025 • Estimated Reading Time: 7 minutes

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Welcome to Home Living, your essential newsletter for decorating and furnishing eCommerce professionals.

New Research 🧐

Google's YouTube and Demand Gen are soaring as the fastest-growing Google Ad channels year-over-year. Why are brands betting big on them in 2025?

Fospha's analysis of over $500M in ad spend across hundreds of brands reveals why. From accelerated revenue growth, to boosted Amazon sales and higher AOV - brands going full-funnel in Google are winning big.

For the full research and a step-by-step guide to maximizing these channels, download the free resource now!

Sector Spotlight 🎥

CONSUMER CONFIDENCE SURGE

Consumer confidence in the UK furniture sector is rising, as GfK’s Major Purchase Index climbed three points in May to its highest level since late 2024. Improved outlooks on personal finances and the general economy suggest consumers may be more receptive to big-ticket purchases, presenting new eCommerce opportunities for marketers. This trend is supported by both the recent base-rate cut and stabilization of external economic threats, indicating actionable momentum for targeted campaigns.

HOME DECOR GROWTH

The global home decor market is projected to reach $1.1 billion by 2032, driven by rising consumer incomes, eco-conscious product demand, and eCommerce platform expansion. Marketers benefit from targeting sustainability trends and personalization via digital channels. Specialty stores and the Asia-Pacific region lead growth opportunities in this competitive sector.

LUXURY HOME DESIGN

This renovation demonstrates the commercial value of merging sophisticated design with family-friendly practicality, prioritizing safety, durability, and intentional use of space to support modern, multipurpose living. Marketers targeting upscale residential or eCommerce sectors will find actionable inspiration in the strategic integration of enduring materials, adaptable layouts, and brand partnerships for premium home products.

SEASONAL PROMOTIONS

Memorial Day mattress sales mirror previous major discounts, but looming tariffs threaten future affordability, making now a critical window for cost-effective purchasing. Marketers should note that price predictability may soon give way to volatile increases, especially affecting budget-conscious consumers and eCommerce channels. Focus on clear final pricing and value-centric messaging.

SUSTAINABLE DESIGN INNOVATION

High-end furniture brand Heller has introduced a plastic enzyme technology that enables rapid decomposition of its products in zero-oxygen settings, turning waste into biogas and nutrient-rich soil within five years. This plug-and-play sustainable solution requires no production changes and maintains the same price point, presenting significant opportunities for eco-conscious eCommerce positioning and brand differentiation.

Influencer Corner 📢

Sometimes, it takes a random viral TikTok to remind us how much the rules of brand interaction have changed. | João Afonso Parra

I recently came across a video (https://lnkd.in/dDgua4AZ) in which a regular user challenged brands to comment on her video during a 3-hour flight, and the response was remarkable.

Within hours, leading brands from multiple sectors flooded the comments section with creative, brand-aligned messages that not only generated massive engagement, but also showcased a new dimension of real-time marketing.

👉 TikTok stands out as the most algorithmically democratic social platform today. Visibility depends less on follower count and more on the relevance, creativity, and resonance of the message.

Still at The Lead Summit? Don’t miss this 👇

The Lead Summit is underway—and our exclusive drinks reception is happening tomorrow.

We’re bringing together some of the smartest minds in commerce for one evening of sharp conversation and good wine in NYC’s FiDi district.

⏱ Thursday, 29 May | 4:30 PM (evening of Day 2)
📍 Wine Bar just 15 mins walk from TLS conference venue – exact location shared upon RSVP Confirmation

Have a look at some of the brands that joined us before:

Optimization Hub ⚙️

INNOVATIVE AD STRATEGIES

Google’s Performance Max updates provide marketers with in-campaign asset AB testing, support for up to 10,000 negative keywords, and a comprehensive Search Terms Report—transforming campaign optimization and control. These features are essential for eCommerce professionals seeking granular campaign management and actionable data-driven decision-making.

DIGITAL AD PREFERENCES

Adobe’s survey reveals that UK audiences are more skeptical of influencers and less responsive to emotional ads compared to the US, yet video remains the most effective ad format in both markets. US consumers have a higher propensity to act immediately on ads, while ad blockers are primarily used to minimize pop-ups. Marketers targeting these regions should prioritize video content and humor, and adjust influencer and emotional messaging based on regional trust levels.

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