Increased competition can make Q4 advertising less cost effective. Because of this in August we’ll be holding strategy sessions with all clients to ensure they’re best placed to [ ] Q4 2020.
This article looks at deals with:
- How coronavirus has impacted buyer psychology/behaviour [jump to]
- How to prepare for highly competitive paid marketing space [jump to]
Q4 2020 – the good news
eCommerce has experienced a boom asa result of Coronavirus.
Klaviyo anticipates that 2020 will be the first year eCommerce sales top $1 trillion, predicting a year on year increase of [ ].
Pinterest’s [ ] of it’s users suggest that buyers are determined to make 2020 ‘the best Christmas ever’ to compensate for a [ ] year.
Q4 2020 – the bad news
Bricks and mortar suffered heavily as a result of Corornavirus. With consumers switching to [ ] it’s likely that budget will be re-directed to paid advertising.
As paid advertising is based on an auction model this will raise CPMs.
Facebook continues to try to find new places to advertise to its users in order to meet demand. It will also increase the need for strong creative, with Facebook’s determining not only whether it ‘stops the scroll’ and leads to engagement, but with Facebook using these two metrics as part of the equation deciding whether they’ll be served at all.
The more targeted content is, the better it understands the consumers wants and needs, the morel likely it is to capture attention, engagement and ultimately sales.
Segmenting your audience allows you to deliver the most targeted content.
Here’s what we’ll be doing for our clients
Use your list
Nurture your list now, make sure you’re following best practice in terms of how you’re managing your list.
Have them connect with you over this as a company event. Show your preparation. Get them excited. Share in their excitement. Some people will be waiting for black Friday to self gift. They may have a gift in mind. Even if they are buying an LCD TV and you sell [ ] , you can still share in their excitement about the approach of that day.
AB test your newsletter opt in and ensure to remove any unnecessary steps or points of friction.
Offer the offer, and an offer
Asking people to sign up in order to receive something extra. So on top of the deal you’ll be offering everyone it could be a day early access, an improved offer, a freebie.
Freebies can be surprisingly effective as long as you ensure the customer values them. The best freebies are those that have a high perceived value compared to the cost of production. Also – think light to ensure you’re not increasing shipping cost.
Consider an SMS list
Consider using paid ads for list building
Run a giveaway or offer a lead magnet. A giveaway may yield email addresses for as a little as £0.15, with reports that after list cleaning 80% of emails were still useable.
A lead magnet will mean a lower conversion rate (and higher cost per email) but is highly targeted.
Do an offer giveaway or affiliate offer with another complimentary company to get access to their list
Understand your data from last year and understand your customers. What’s their LTV? Do they need a discount to shop? Are they buying for themselves, as gifts? Within your different cohorts shoppers will be entirely different people.
Buy one, give one
Running ads well will naturally increase organic following on Instagram and Facebook
Get out ahead
Launching earlier can [ ] in the competition.
Tease offers in advance
Letting people know what your offers are going to be might [ ] demand. However it can ensure that
Last minute shoppers
The competition will extend to shipping rates.
Consider how you can coax shoppers into buying sooner. And what you can offer shoppers after the delivery cut off. For example, gift cards or a printable showing the item. Some brands might even leverage the fact that Xmas day is directly before another major holiday – turning Christmas gifts into gifts for new years eve that will be delivered to them by new years eve or new years day (perfect for gifts that [ ] with new starts such as diaries, calendars, weight loss products). A printable ‘I’m sorry I’m a late shopper’ with printable ‘last minute shopper’ dunce hat.
The fact is that consumers [ ]. Christmas day is no exception.
We’ll be making the most of lower CPMs on 26th February to launch our client’s January sales.
Squeezing the lemon
Efficiency is the name of the game here.
Going through the numbers
Part of scaling our clients means working in partnership with them to understand their financials to a whole new level.
If you have a product that customers buy and never return, which has a 30% margin, that’s something we want to know about. We don’t just look at your ROAS but your actual profit. We don’t even look at your single sale profit, but your life time customer value. For example, while you’re ROAS might be lower over black Friday, knowing the life time value (or value over a specific time window) of a new customer can help
We need you to be absolutely clear on your figures so that you can advertise as competitively as possible. This is especially true for brands who sell D2C as well as through other retailers. The reality is that you are in direct competition.
If you would like to discuss the implementation of any of the strategies addressed above please book in a free 45 minute strategy call.