by. Madison Baer
As the holiday season approaches, and the shopping frenzy of Black Friday and Cyber Monday has concluded, advertisers are gearing up for the expected surge in consumer activity on social media and the likely rise in CPMs they will see on their Paid Social Media campaigns.
The Origin of Black Friday and Cyber Monday
The cherished American custom of Black Friday originated in the 1950s and is observed on the Friday after Thanksgiving. The name "Black Friday" signifies the financial prosperity it brings to stores, as their sales figures turn "in the black." On the other hand, Cyber Monday was launched in 2005 to encourage the then-emerging trend of online shopping. Nevertheless, the line between these two shopping occasions has become increasingly blurred over the years, with a remarkable 80% of Black Friday purchases now happening online (AdGlow, 2020).
2023 Black Friday and Cyber Monday Turnout
The turnout for this year’s Black Friday and Cyber Monday was nothing short of extraordinary. As reported by CNBC and Forbes, a staggering 200.4 million people participated in the shopping marathon worldwide. This led to a whopping $9.8 million in online purchases and a notable 2.1% rise in in-person shopping. It is safe to say that these shopping events were an absolute triumph.
How is “Cost” Measured?
Cost Per Thousand Impressions (CPM) is a crucial performance metric to consider in social media marketing. It measures the number of views or engagements an ad receives. A lower CPM means lower advertising costs and potential higher revenue. With more businesses vying for attention, the demand for ad placements skyrockets, leading to a surge in CPMs - a metric that measures the cost of reaching a thousand potential customers. Therefore, it is essential to keep track of your CPM to optimize your social media marketing strategies and goals.
How Does This Impact Paid Social Media Advertising Costs?
During this festive period, people are on the lookout for the best deals and discounts, and social media platforms become a hub of activity. Advertisers seize this opportunity to showcase their products and services, resulting in increased competition for ad space.
Black Friday drives consumers to social media platforms for deals, while Cyber Monday propels even more users to engage with social media ads. This influx of users creates a higher demand for ad impressions, causing CPMs to soar. This increased effectiveness of ads leads to a higher willingness among advertisers to pay a premium for ad placements.
What to Know For Next Year and How To Prepare
To overcome the challenges of Black Friday and Cyber Monday, due to high ad volume and competition from other brands, advertisers should devise strategies that mitigate the negative impact of high costs. By following these steps, advertisers can optimize their returns and make the most of the holiday shopping season.
- Use First Party Data: Advertisers should utilize their exclusive data to improve their media purchases and streamline their marketing efforts. It's important to have a data acquisition strategy throughout the year, not just for specific campaigns. By using first-party data, advertisers can target their audience better and optimize their ad spending.
- Measure Creative Performance: It's crucial to track how effective the creative content and ads are performing. Metrics like Click-through-Rate (CTR) or Cost per Click (CPC) can provide valuable insights into the success of advertising campaigns. By monitoring these metrics, advertisers can make data-driven decisions to enhance their creative content and optimize ad performance (Medium, 2023).
- Invest in Popular Inventory: On Meta platforms, for example, investing in Instagram Reels can be a smart choice this year. The Meta algorithm prioritizes TikTok-style content on Reels, making it a valuable advertising opportunity. If advertisers have organic content that generates significant engagement, exploring Reels as an advertising platform can be worthwhile. By leveraging popular inventory, advertisers can reach a broader audience and increase their chances of achieving profitable results.
Social media platforms transform into a bustling marketplace for bargain hunters, providing advertisers with a chance to reach out to potential customers. However, be prepared for heightened competition and expenses.