Holiday Ad Pricing & Strategy Guide. Driving Holiday Sales Profitably With In-Feed Advertising

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1 Holiday Ad Pricing & Strategy Guide Driving Holiday Sales Profitably With In-Feed Advertising

2 2014 holiday spending is expected to grow 4.1% this year to $616.9 billion, representing almost 2 of the retail industry s annual sales. Competition for advertising inventory and shoppers attention spikes around key dates as December 25th inches closer. This guide highlights ad pricing and engagement trends on Facebook during key holiday shopping weeks as well as optimization strategies for achieving marketing goals profitably during the holiday season. Data in this guide is based on the advertising campaigns run through Ampush s ad buying platform, AMP, during Q4 of 2013.

3 Key Dates for Advertisers Be aware of the key dates and events during the holiday season that drive fluctuations in ad pricing. Week 1 Sunday Monday Tuesday Wednesday Thursday Friday Saturday Week 2 Thanksgiving Day Black Friday Week 3 Cyber Monday Week 4 Green Monday Week 5 Last Ship Date Panic Saturday Week 6 Post-Holiday Sales 1

4 Holiday Pricing Fluctuations CPM & CPC Trends in Q4 CPM skyrockets in Q4 due to much heightened competition to reach both narrow segments and broad, general audiences of shoppers. Retail and e-commerce advertisers will see CPM spike between Thanksgiving Day and Cyber Monday, while mobile apps will see CPM continue to increase as the holidays draw nearer (note Ampush s customer base skews toward mobile-first companies). CPC drops below average during this time period due to more people clicking more ads (see next slide for engagement trends)

5 Holiday Engagement Fluctuations CTR / Engagement Trends With gifting top of mind, ads see the highest engagement they will all year, with CTR jumping as much as 234% above the yearly average CTR notably fluctuates week-to-week, driven by key shopping days and added urgency as the holidays draw nearer

6 Week By Week Strategic Breakdown 4

7 Week 1 I November Pre - Thanksgiving CPM and CTR are already far higher than average come early- to mid-november. Begin advertising early when competition is less intense Set the stage for future purchases with ad creative that gets people thinking about the upcoming holidays and prompts them to browse your product catalog or website. -5 Use video. It s more engaging, perfect for driving awareness, and more targeted than a TV ad. Add image tags to your website early in the quarter so you can track (and later retarget) as many people as possible. 5

8 Week 2 I November Thanksgiving & Black Friday Consumer demand (specifically on mobile) spikes Thanksgiving morning and then again at dinner. Online purchases peak on Black Friday (Cyber Monday is a close second). Allocate close to 25% of holiday budgets towards Thanksgiving, Black Friday and the weekend that follows. -5 Target broadly to reach the widest audience of potential customers at the most efficient spend. Incorporate holiday themes or offers into ad creative from here on out. Ads with holiday themed-creative drive higher CTR than those without. 6

9 Week 3 I December 1-7 Cyber Monday CPM is the highest it will be all year, so raise bids significantly. Both CPM and CTR dip notably come Tuesday, but will remain high through the close of Q Retarget previous website visitors with general or product-specific ads to drive them back to your site. Continue this through to Last Ship Day. -5 Don t forget mobile. Twenty five percent of Cyber Monday online shoppers will place orders from mobile phones. Feature free shipping and low prices or promotions front and center in ad creative. 7

10 Week 4 I December 8-14 Green Monday CPM and engagement creep up as mobile apps boost spend. Spend remains high but flat for e-commerce advertisers Focus retargeting efforts to reach the people that have not, but are highly likely to convert. Target shopping cart abandoners and people that have made product-specific searches. -5 Exclude people that have already made purchases to ensure budget is spent efficiently. 8

11 Week 5 I December Last Ship Date & Panic Saturday Feature Shipping ends (Date) in ad copy to capture the last of online shoppers (note CTR drops this week). Call out oneday or rush shipping if available. 15 Bump up mobile ad budgets. Last-minute shoppers turn to their phones to research products, prices, and places to buy. 5-5 Drive shoppers in-store. Highlight nearby locations or link ads to a website landing page with a find your closest store search tool. 9

12 Week 6 I December Post - Holiday 25 CPM and CTR drop dramatically after Christmas Capture post-holiday shoppers looking to use gift cards (the most requested holiday gift) with remaining budget. App installs spike Christmas morning and the days that follow. Target new smartphone and tablet owners with mobile app install ads

13 LEARN MORE WAYS TO GROW YOUR BUSINESS PROFITABLY WITH IN-FEED ADVERTISING AT AMPUSH.COM

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