Black Friday is fast approaching and according to Bloomberg, this year’s sale may start two weeks earlier than usual, which makes it important for marketers to be well prepared. In addition, it is predicted that consumers will choose not to stand in line at a physical store and instead do the shopping online.
Due to the pandemic, online shopping has increased by almost 75 percent, which indicates that online sales will skyrocket
during this year’s Black Friday. At the same time, Q4 is predicted
to be the biggest mobile shopping season yet. Depending on vertical and type of activity in the online stores, sales can increase by as much as five times compared to a regular day at the beginning of the month. Data from RTB House shows that sales in the retail verticals increased by 39 percent in November 2019.
RTB House has analysed the results of 36 partners, and 20 of them had significant promotions during last year’s Black Friday. Apparel and FMCG retailers increased average sales from new buyers by 50 percent. Retailers of products that are purchased with longer decision processes, are more expensive and only bought occasionally (eg. furniture, household appliances and jewellery) increased their sales by almost 90 percent among customers who have not visited the online store in the last 100 days.
According to the data, users start searching for information about Black Friday as early as beginning of November, and it takes 7-14 days to convert 90 percent of the customers. It can therefore be good to get consumers to visit the online store a few weeks earlier. RTB House often receives questions from clients about how to think about retargeting campaigns during this time of year, and how much investment is required for optimal returns. Ahead of Black Friday and based on previous years’ results, RTB House is therefore sharing three different retargeting strategies to use during the campaign period. 1. Go with the flow
With this strategy, marketers usually offer their customers certain discounts while trying to keep margins stable as the effect of discount is offset by increased volume. The strategy helps to increase sales by maintaining a stable return on investments. It suits mature competitive markets best. This strategy offers expert daily flexibility on goal delivery (ROAS/COS/CPA). 2. Grow above the market
For those clients who want to increase their market share and get on top of mind during Black Friday, a more expansive strategy is recommended. It can be risky because it puts pressure on margin and supply chain. If the remarketing strategy is placed and executed properly, it can be very rewarding for the marketer. The strategy should be bundled with large discounts to be really effective. 3. Acquire new customers
During a promotion day like Black Friday, it is also a good opportunity to acquire new customers. Many users wait months before making their first purchase. By converting customers for the first time during promos it is possible to obtain future loyal customers. Some marketers succeed to increase the number of conversions of new customers by as much as 30 percent. To succeed with this, a broad campaign with a higher reach than normal is recommended. When it comes to larger online stores, the user base is large, and it is possible to create different retargeting scenarios by influencing the latest visitors or those who have not visited the online store in a long time. If conversion of new customers is a priority, it is recommended to put 20 percent of the retargeting budget to reengage customers.