Without fail, social media ad spend skyrockets during the holiday season. So, why do marketers throw their hats into that ring every year?
Because people are buying.
Sadly, knowing that people are spending money doesn’t magically increase your advertising budget.
That’s why I’m here! I’m going to show you how to stretch your holiday ad spend dollar whether you’re a nationally-known business or a local store.
Timing Is Everything for Online Advertising
When you’re marketing on the day of a holiday, your cost-per-click (CPC) goes up dramatically. Why? Because everyone is bidding for the same virtual ad space.
While on any given Tuesday it might be just you and a (comparatively) small handful of other businesses, online advertising on Black Friday is going to pit you against retailers like Walmart and Target. By the time you finally win a bid, you’ll likely spend more on ads than you’ll ever see in ROI.
So, what do you do?
For National Brands:
If your organization is big enough, you may actually stand a chance at competing with larger companies for ad space on a major holiday. Still, it’s worth considering whether or not this is the best move for you. Take into account how many of your clicks regularly turn into leads, then how many of those leads turn into conversions.
From there, you can work out how much money each of those ad clicks is going to earn in your customer’s lifetime. When running these calculations, remember that holiday shoppers are less likely to become lifelong customers.
Once you’ve got your number for how much profit each click will generate for you, based on past experience, find a margin that works for you. How much can you pay for clicks and still get an exciting ROI? Find that number, and don’t bid a penny over it. It’s unfortunate if you can’t get holiday ad space, but it’ll be worse to lose money on those same ads because of increased holiday ad spend.
For Local Businesses:
Don’t even think about throwing your hat into that ring. The amount of traffic your local business is going to get is almost certainly not going to cover how much you’ll end up sending on clicks. Unless you’re the one local business in the world with an ad budget to rival a worldwide retailer, don’t waste your time bidding on ad space that you can’t afford to support. You might look at holiday content marketing or other strategies, instead.
If you find that it just isn’t feasible for you to run ads on a holiday, that’s completely fine! You can still get your share of holiday revenue. Just pick a day around the holiday to target.
You probably don’t want to skip Cyber Monday just to do the day before, where the bidding landscape will be almost identical. But what about the day after? In many ways, the day following a holiday is an overlooked hotbed of potential sales.
Immediately after a major retail holiday is exactly when all the bargain hunters come out. This is where you can shine! The ad spend market won’t be nearly as saturated with bids, and there will still be plenty of online shoppers for you to draw in.
Place your lower bids, and watch as you get prime ad space for a fraction of what it would’ve cost you 24 hours earlier.
You’re working with a limited ad budget in a competitive market, so choose your investments carefully! Take this information and make a name for your brand without spending every last penny on holiday ad space.
Does your holiday marketing plan still need some work? Set up your free consultation with The Go! Agency!
Editor’s Note: This blog has been updated and republished to reflect current information. The article was cleaned up, recommendations were reassessed, and references refreshed.Read More