The Cyber Quarter
We are 14 days from an election and supposedly 38 days until Black Friday. But do we believe that consumers are waiting until the Friday after Thanksgiving to shop in 2020? Amazon doesn’t and they just saw a 60% increase in 3rd Party Sales from last year during this most recent Prime Day.
Neither does Walmart’s US CEO, "The customer is looking for solutions that really start sooner than years past."
The industry has not named it yet, but Prime Day this year may have kicked off the first Cyber Quarter. Instead of just a Black Friday, Small Business Saturday, Cyber Weekend, Green Monday, Turkey Five, Cyber Week, etc - we are now seeing holiday sales start in October.
And October may be late. If we don’t go by the Gregorian calendar but rather the more official Starbuck’s calendar and their start to Fall - the Pumpkin Spice Latte launch date. In 2020, the PSL was launched at its earliest date ever of August 25th. A full 14 days sooner than the 2015 date!
But before we dive in, let us provide a bit of *history about Black Friday. It is important to understand why every season seems crazier for retailers than the previous.
The true story behind Black Friday, however, is not as sunny as retailers might have you believe. Back in the 1950s, police in the city of Philadelphia used the term to describe the chaos that ensued on the day after Thanksgiving, when hordes of suburban shoppers and tourists flooded into the city in advance of the big Army-Navy football game held on that Saturday every year. Not only would Philly cops not be able to take the day off, but they would have to work extra-long shifts dealing with the additional crowds and traffic. Shoplifters would also take advantage of the bedlam in stores to make off with merchandise, adding to the law enforcement headache.
If you work in eCommerce, retail, or a related industry you know that the roots of ‘bedlam’ and chaos have not left this all important sales holiday. In recent years, Black Friday craziness has just simply expanded into a longer sale period. And 2020 will be no different given that we are currently witnessing the broadest expansion, in the shortest period, ever.
Citing COVID, Amazon changed their pattern from Prime Day being a “Christmas in July” affair to the start of holiday sales and gift buying.
Amazon has yet to disclose sales figures or data to help analysts provide a more accurate estimate of Prime Day 2020 sales; however, “Amazon said the small and midsize businesses that sell on its marketplace made more than $3.5 billion during Prime Day, which is a 60% increase from last year’s sales.”
3rd Party Sellers equate to around 55% of total sales for Amazon. Let’s assume a very conservative and most likely wrong scenario that the rest of Amazon’s business had an anemic YoY growth of 0%. Applying a ~30% YoY growth overall due to the stated data on 3rd party sellers, we would have Prime Day sales at $7.5 BB in sales.
This is obviously an incredibly conservative estimate as MotleyFool published an article with an estimate of $10.6 Billion in sales!
Amazon, never one to miss an opportunity to make more money, then followed up Prime Day two days later with a holiday focused sale campaign of Holiday Door Dash Deals. Halloween hasn’t even occurred and Amazon is already pushing press releases with the word ‘Tis!
Not to be upstaged, Walmart, Target, Best Buy and other big box retailers are now scrambling to play catch up in their own unique ways.
Our favorite example is Walmart running three separate Black Fridays! Again citing COVID, and a need to keep customers more socially distant while shopping Black Friday deals, they will run a month of Black Friday sales instead of the one mad dash sprint. Or perhaps this brick-n-click business understands that 2020 is not a regular Q4. Sales should be quarter long, not pinned to a precise day.
Yes these companies can cite COVID but what specifically has COVID caused when it comes to eCommerce and retail? For starters, a 10 year increase in eCommerce penetration within 3 months!
“More than $1 in every $5 was spent online in Q2 2020–the highest eCommerce penetration of any quarter or year on record.” While total sales during this period remained more or less equivalent, the shift in consumer spending patterns is significant.
COVID has caused the displacement of consumer patterns. When this occurs, markets are in transition and you can bet that there will be big winners and losers made during tumultuous times.
A doubling of eCommerce penetration in Q2 could mean that 1 in 2 online shoppers this Q4 2020 will be brand new to buying online. This should and will cause differences in dramatic ways for businesses.
So What?
We would love to brag that Jeff Bezos reads The Weekly Dysrupt but we sadly have not seen Jeff@amazon.com on our mailing list (please forward to him if you have his address).
For the rest of us mere mortals, what moves can still be made to capitalize on this increase in consumer demand?
- Talk with your finance and leadership teams about setting up a holiday marketing budget that is more fluid than previous years. You will want to have marketing funds on hand when the market shows signs of interest, not just when 2019 showed an uptick.
- 2020 will see less family travel which means an increase in shipping gifts. Ensure your gift receipt, wrapping, processing is top notch to allow ease of mind when someone purchases for a friend or family member.
- With people feeling isolated due to COVID and lacking the human engagement of retail shopping, now more than ever it’s critical that you create an authentic relationship with your consumer and incentivize post-purchase behavior!
- Look to increase retention and stickiness with new customers by implementing a 1st purchaser reward/loyalty programs. Give your new customers a reason to be lifelong shoppers of your brand because if you don’t your competitors will.
- Don’t skimp on the creative! Between elections and a historic eCommerce push, consumers are absolutely inundated with advertisements. Remember “you are the Uninvited Guest” and your ad needs to do more than exist. How are you going to stand out in the feed, and what are you going to deliver to consumers that no one else can?
As Walmart’s CEO said, consumers are looking for moments that start sooner. Ensure you are set up to capitalize on when and how a very different consumer shows up to shop this holiday season. If done well, you can enjoy your Pumpkin Spice Latte with less, not zero, bedlam and chaos than your competitors.
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*https://www.history.com/news/whats-the-real-history-of-black-friday
Photo by Markus Spiske on Unsplash
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Facebook Ads Bidding Strategies can either make or break your advertising campaign. If you've been struggling with getting the best results, understanding the benefits and drawbacks of each strategy can save you both time and money. The right bidding strategy can help you reach your target audience more effectively and get the most out of your advertising budget.
Each bidding strategy has its unique benefits and challenges. Some are great for maximizing visibility, while others prioritize cost-efficiency. Choosing the right one depends on your specific goals, whether that's more clicks, better engagement, or higher sales. Knowing the pros and cons of each strategy will help you make informed choices that benefit your business.
This article will guide you through five key Facebook Ads Bidding Strategies. You’ll learn about their benefits, drawbacks, and how to pick the one that suits your campaign objectives. By the end, you’ll have a clear understanding of which strategy will help you achieve your advertising goals effectively.
Understanding Facebook Bidding Mechanics
Facebook bidding is essential for advertising success. It involves auctions where advertisers compete for ad placements. Understanding key elements like Auction Dynamics and Different Bidding Strategies is crucial.
Auction Dynamics and How Bids Work
In Facebook's auction, ads compete based on bids, estimated action rates, and ad quality. Bid represents how much you're willing to pay for a specific action (like clicks, views, or conversions). The Cost Per Result adjusts based on competition.
Bid Cap lets advertisers set a maximum bid. This ensures spending control but may limit campaign reach. Meta bidding strategies, like Lowest Cost and Target Cost, help optimize for specific goals, balancing cost and performance.
Factors influencing the auction include:
- Bid amount
- Ad relevance
- Estimated action rates
Exploring Different Bidding Strategies
Advertisers can choose from several Facebook bidding strategies. The Lowest Cost strategy aims to get the most results for the lowest price but may lack spending control. The Cost Cap strategy helps maintain an average cost while driving results.
The Bid Cap strategy is useful for high-control needs, letting you set the max bid per action but it might restrict delivery. Target Cost aims for a stable cost per action, ideal for steady budget planning.
Choosing the right strategy depends on your campaign goals, budget, and desired Cost Per Result. Evaluate each option to find the best fit for your needs.
Implementing Bidding Strategies for Campaign Success
Successful implementation of bidding strategies can drive better results and optimize ad spend. Key factors include setting appropriate bid caps, maximizing returns using ROAS goals, and balancing volume and value.
Setting the Right Bid Cap for Your Campaign
Setting the right bid cap involves determining the maximum amount you are willing to pay for a result. This ensures costs don't exceed the budget. Bid caps can help control spending and improve efficiency.
- Analyze past performance: Review historical data to identify the highest bid that achieved desired results.
- Adjust as needed: Be flexible to change bid caps based on real-time campaign performance.
- Consider the competition: Higher bid caps might be necessary in competitive markets.
Maximizing Returns with ROAS Goals
Use the Return on Ad Spend (ROAS) bid strategy to drive maximum returns. ROAS goals ensure that every dollar spent on ads generates a specific amount of revenue.
- Calculate target ROAS: Set a realistic ROAS based on past campaigns.
- Monitor and tweak: Regularly check ad performance and adjust your ROAS goals to meet revenue targets.
- Balance quality and cost: High ROAS might limit reach, so find a balance between cost and quality.
Balancing Volume and Value in Bidding
Balancing volume and value helps achieve the right mix of reach and profitability. Consider using both Highest Volume and Highest Value strategies.
- Highest Volume: Bids are set to get the most conversions, good for awareness and large-scale campaigns.
- Highest Value: Focuses on getting the highest-value conversions, suitable for targeting high-value customers.
By carefully implementing these strategies, advertisers can meet their campaign goals effectively.
5 Facebook Bidding Strategies: Benefits, Drawbacks, and Selection Guide
Static ads and dynamic ads serve different purposes in the world of marketing. Static ads are simple and stay the same at all times. They are easy to create and can be effective for straightforward messaging. But dynamic ads offer customization, changing their content to fit the audience's preferences and behaviors.
Dynamic ads might seem complicated, but they bring better results by targeting specific groups with personalized messages. This means higher engagement rates and more conversions. Static ads, on the other hand, are less effort to produce but may not capture attention as effectively.
Deciding between static and dynamic ads depends on the brand's goals and resources. Each has its strengths and can be powerful if used appropriately in a marketing strategy.
Understanding Static and Dynamic Ads
Static ads and dynamic ads serve different purposes in digital marketing. Each has unique features and benefits that cater to varied marketing needs.
Exploring Static Image Ads
Static image ads are straightforward. They are typically still images that do not change once created. These ads are ideal for conveying a clear, unchanging message or brand image.
A static image can include text, graphics, and logos, and is often used on websites and social media platforms.
Advantages of Static Images
- Consistency: The message remains the same, which can be useful for brand recognition.
- Simplicity: They are simple to create and often cost less than dynamic ads.
- Predictability: Once the ad goes live, what you see is what you get.
Unpacking Dynamic Advertising
Dynamic ads are more complex. They can change content in real-time based on user data and behavior. Unlike static ads, dynamic ads can alter images, text, and calls to action depending on who is viewing the ad.
Benefits of Dynamic Ads
- Personalization: Content can be tailored to each user, potentially increasing engagement.
- Flexibility: They can show different messages to different audiences without creating multiple ads.
- Efficiency: They adapt to user preferences, making the ad experience more relevant.
Comparative Analysis and Use Cases
Static and dynamic ads offer different benefits and limitations. This comparison will help you understand where and how to use each type effectively in your marketing strategy.
Static Images Vs. Videos
Static images are simple and quick to create. They load faster than videos, which is great for mobile users and slow internet connections. They allow for clear, focused messages without distractions.
Videos, on the other hand, capture attention better with motion and sound. They convey more information in a short time. Videos are more engaging and can demonstrate products or services in action.
Leveraging Opportunities for Static Ads
Static ads are useful in various scenarios. Billboards are a great example, as they need to be read quickly. Print ads in magazines and newspapers also benefit from static images. Online banners are often more effective when static, as they load quickly and are less intrusive.
Static ads are best when the message is straightforward. They work well for short calls to action like "Buy Now" or "Sign Up." Visually, they should be clean and uncluttered to convey the message quickly.
