Savvy Marketers Need To Approach Holidays WIth Selective Planning
- by Gavin O'Malley @mp_gavin, November 7, 2014
“We expect possible increases as we get deeper into the season, if last year is any indicator,” according to Max Kalehoff, senior vice president, marketing at SocialCode. In other words, “competition is likely to increase.”
Along with advertising around the hottest shopping days, Kalehoff suggests that marketers plan strategically to take advantage of significantly lower CPMs during less competitive, yet arguably important shopping days.
“This is especially true earlier in the holiday season, when marketers and retailers are seeking to connect with early shoppers while building longer-term demand,” he said.
In the fourth quarter, desktop Facebook News Feed CPMs will rise incrementally throughout November, spiking on Black Friday and Cyber Monday, according to aggregate digital ad data representing hundreds of Fortune 500 brands within SocialCode’s client portfolio.
For brands with direct-response goals, high consumer purchase intent during Black Friday and Cyber Monday can justify throttling spend up -- even amid high competition, according to SocialCode. Last year, for example, one SocialCode retail client spent four times more on Cyber Monday than average, and saw a 250% lift in return on ad spend.
By contrast, brands with higher-funnel branding goals should pause their campaigns on these days, according to Kalehoff. Without the opportunity to capitalize on direct purchases, advertisers are better off executing campaigns that don’t generate direct revenue when auction prices stabilize.
Also of note, holiday shopping momentum often continues through January, partly though gift-card redemption and post-season deals. In 2013, for example, CPMs dipped after Dec. 25, creating an opportunity to deploy advertising and capture January shopping momentum. Advertisers would be wise to conserve their ad budgets and capitalize on such lower-competition opportunities.
