Online Holiday Shopping Season Hits $126 Billion

Online Holiday Shopping Season Hits $126 Billion

Retail

Winning the hearts and minds of consumers during the holidays increasingly means having a digital strategy to attract and convert them. According to Adobe Analytics, consumers spent $126 billion online during the 2018 holiday season, an increase of 16.5 percent year over year. For the first time ever, smart phones drove half the traffic, amounting 31 percent of revenue (34 percent growth year over year).

The numbers do not surprise me. By early December, the holiday season was already well on its way to achieving strong results. The final numbers suggest a number of lessons for retailers:

1 Start Early to Win Online

Our own clients were working with us to start raising awareness online for their holiday sales long before the holiday shopping season began. Businesses that began building awareness for their holiday inventory via online advertising were best positioned to attract the surging traffic from shoppers going online looking for deals.

2 Respect the Power of Thanksgiving Weekend

Reports of Black Friday’s demise are exaggerated. Black Friday achieved a 23.6 percent increase in online traffic. But Black Friday is now part of a bigger five-day Thanksgiving weekend shopping extravaganza. The period between Thanksgiving Day and Cyber Monday generated 19.2 percent of all online holiday spend. In particular, Cyber Monday saw a surge of buying. A four-hour time block on Cyber Monday (7:00 pm to 11 p.m. PST) was the most active period of the year. These four hours recorded more than $2 billion in sales. Conversion rose sharply through the evening, as consumers rushed to take advantage of deals. Businesses that invested in a strong Thanksgiving Weekend digital media spend were in the driver’s seat to win, especially if they capitalized on Cyber Monday by spending on ads with strong calls to action during the waning moments of Cyber Monday.

Go Mobile

The increase in smartphone traffic clearly shows that businesses need strong mobile-centric advertising strategies, including investments across mobile display networks. But going mobile means more than having a mobile presence. Going mobile means:

  • Promoting your app effectively. Mobile apps are now driving more revenue than ever. Having a strategy to promote your app is more important than ever.
  • Formatting content for mobile viewing and including an easy conversion path on mobile.

At the same time, it’s important to ensure that your messaging on mobile is consistent with your messaging on other channels.

Start Succeeding Now

You don’t need to wait another year to apply these lessons. They hold true with other major events that attract a surge of shopping and advertising, such as Presidents Day and Memorial Day. True Interactive can help you prepare. Contact us.

Image source: https://pixabay.com/en/holiday-shopping-smartphone-phone-1921658/

Advertiser Q&A: Google Showcase Shopping Ads

Advertiser Q&A: Google Showcase Shopping Ads

Google Uncategorized

Google has been beefing up its showcase shopping ads product to help retailers spice up their holiday advertisements. Showcase shopping ads make it possible for businesses to group together related products to merchandise them more effectively. The format is tailored for mobile viewing. Recently Google added new features such as video to make these ads more powerful. At True Interactive, we’ve been applying showcase shopping ads with favorable results. One of our clients running showcase shopping ads has seen an 80-percent higher click-through rate over standard shopping ads. This blog post explains showcase shopping ads based on questions we’ve received.

What exactly are showcase shopping ads?

Showcase shopping ads appear as a collection of shoppable images displaying different products offered by an advertiser. The ads are built to capitalize on broad keyword searches such as “winter sweaters.” The showcase shopping ads work this way:

  • Someone making a non-brand search for, say, winter sweaters will see in their search results display ads from different retailers with winter sweaters and promotional ad copy.
  • When the shopper clicks on the ad, they are taken to a landing page with a merchant’s line of winter sweaters. The shopping ad display, or showcase, resembles a brand page to the user, consisting of products the advertiser wants the user to see.

A shopper may click on an inventory and complete a purchase.

A business can create multiple showcase shopping ads. The header image can be different based on what is uploaded into each showcase shopping ad. In the above example of winter sweaters, a retailer could run a header image that focuses on sweaters but have another header image that focuses on outerwear for a “winter coat” search. The Google algorithm chooses which products appear based on variables such as the product titles, description, and type.

Who is this a good fit for?

It is highly recommended that you have at least 1,000 products in your inventory. There is no minimum budget. The format is effective for anyone who wants to get their products in front of a large audience because it’s based on broad keywords. It’s not for people competing for specific keywords. For bigger advertisers, showcase shopping ads are a good way to display multiple products for broad keywords. You can create an engaging photo and additional messaging that smaller businesses may not be able to afford.

Why is Google beefing up showcase ads?

The main reason Google is pushing showcase ads is that they are optimized for mobile. Salesforce recently predicted that mobile devices would dominate both traffic and orders for the entire 2018 holiday shopping season (68 percent of traffic and 46 percent of orders). On Black Friday alone, retailers saw $2.1 billion in sales from smartphones, accounting for 33.5 percent of Black Friday sales. The rise of mobile reflects broader shopping trends, and Google wants to capture a share of ad revenue associated with mobile shopping by offering a shoppable ad format.

What is the pay model?

The pay format is cost per engagement, not cost per click. The user has to be on the ad for 10 seconds or more, at which time the advertiser is charged. This approach can be a drawback. A click is a specific action. But having a page open for 10 seconds is a passive way to measure user intent. A person may not be really engaged with a product while a screen is open.

Any tips for getting the most out of Google showcase shopping ads?

Yes. Advertisers need to do two things:

  • Ensure all your products are grouped together in an easily findable way.
  • Have your products accurately labeled in each ad group.

Bottom line: Google showcase shopping ads give multiple advertisers a way to showcase multiple products for generic keywords that can otherwise be very expensive. If you compete for generic keywords in a mobile centric world – and who isn’t? – then you should consider Google showcase shopping ads. If you need help getting started or if you are running Google showcase shopping ads and want to take your game to the next level, contact True Interactive. We’re here to help.

The Key to a Successful Holiday Season: Shipping

The Key to a Successful Holiday Season: Shipping

Retail

Black Friday and Cyber Monday deals are just table stakes for retailers to compete in the first-ever $1 trillion holiday shopping season. The real competitive advantage is coming from shipping.

Based on the client work I do, I’ve always known that favorable shipping can help a retailer compete more effectively during the holiday shopping season. Low-cost, rapid shipping caters to the needs of today’s on-demand consumer who want products curated and sent to them and oftentimes at the last minute.

But what’s changed dramatically about the 2018 season is the Amazon effect. Earlier in November, Amazon announced free shipping with no minimum purchase required from November 5 onward. Amazon did not announce a cut-off date, but it will probably be December 22. Now, this change to its shipping policy is huge. Amazon accomplishes two objectives with free shipping during the holidays:

  • Beating Target and Walmart. These two retail giants had announced more liberal shipping and returns policies of their own in October. Walmart had announced it would expand two-day shipping to the entire Walmart marketplace beginning November 1. And Walmart also said that products purchased through its marketplace could be returned Walmart brick-and-mortar stores products purchased through its marketplace. Target had announced free two-day shipping with no minimum purchase or REDcard membership required from November 1-December 22. Amazon trumped both.
  • Luring shoppers to Amazon Prime. Amazon hopes that anyone using free shipping during the holidays will get a taste of what Prime members enjoy all the time – and, presumably, sign up for Prime, where many more benefits await. For example, Prime members get free same-day delivery on millions of items and free two-day shipping on many more. Prime is the center of Amazon’s on-demand world, which encompasses services ranging from entertainment to retail.

Smaller retailers have a harder time competing on those kinds of terms, but try they must. If you’re a brick-and-mortar retailer, advertising on-demand services such as delivery, shipping, and online ordering/in-store pick-up is key to winning this holiday season. It’s important that you manage your online advertising, including your paid search and display, to show how well you service the on-demand shopper. If you need help, contact True Interactive.

Image source: Walmart

Advertiser Q&A: Amazon Display Ads

Advertiser Q&A: Amazon Display Ads

Amazon

All eyes are on Amazon this holiday season, with eight out of 10 shoppers planning to search Amazon for holiday deals. In September, Amazon organized all its advertising tools under one offering, Amazon Advertising, to help businesses capitalize on the gushing river of shoppers flooding the site. Our clients have been asking about the tools available under Amazon Advertising. Perhaps you are wondering, too. Recently I blogged one of those products, Amazon sponsored ads. Now let’s take a look at Amazon’s display advertising solutions.

1 What is Amazon’s Display Advertising Solution?

Amazon has two very different display advertising options. The first, which was discussed in the last post in this series, consists of product display ads. This ad type is part of Amazon’s pay-per-click (PPC) offerings, has limited reach and ad options, but is available to everyone who wants to advertise on Amazon.

The second option, and the main focus of this post, consists of Amazon display ads. These ads use specific audiences with custom creatives to target people on Amazon and Amazon-owned and third-party sites, apps, and devices. An advertiser can manage the ads themselves through the Amazon demand-side platform (DSP), or they can work with a team of experts.

2 Why Would an Advertiser Use Display Ads?

Just like any programmatic display strategy, an advertiser would use display ads on Amazon to show relevant ads to people who are in their target audience. The seemingly endless list of ad sizes, formats, and placements means that there is just as many options for creative customization, reaching consumers on all devices, both on and off Amazon. Couple that with the advanced audience options available, and almost anything becomes possible. An advertiser can reach current and new audiences at any stage in the search funnel:

  • Build awareness of a brand or product by using look-alike audiences based off of current customer information.
  • Get people when they are in the research phase through product or interest-based targeting.
  • Reengage with customers during their purchase decision using audience lists based on buy behaviors and what pages they’ve visited on and off Amazon.
  • Send customized messages to people who’ve already made a purchase encouraging them to become repeat customers.

3 Are There Any Limitations to Display Ads?

The main limitation with Amazon display ads is the price. Amazon requires a $35,000 budget for a campaign before they will let you have access to any of these features. The product display ads that are part of the sponsored ad solutions do not require any minimum spend amounts and may be a better fit for smaller advertisers or advertisers looking for a smaller test on Amazon.

4 How Can Advertisers Maximize the Value of Display Ads?

Think about your brand and what’s already on the plan for the year. Is there a big product launch or holiday push coming up? Are you noticing declining new customer sales? Is it time to reengage previous purchasers? Taking the time to identify what you really want to achieve with the display ads is the first step in maximizing the value of this ad format. Identify what the goal is, what the important metrics are, and how success will be measured.

Next, don’t rush the creative process. Have unique ads for each audience and goal, if there’s more than one. Understand that someone seeing an ad while they’re relaxing at home during the evening might respond differently than someone actively searching Amazon on their lunch break.

Finally, consider using display ads as a part of a larger tactic strategy. Display ads may not result in immediate direct sales, but do have an impact in other areas. Product searches and subsequent purchases typically go up once a display campaign has been launched. Visits to the brand website can also be expected to go up.

If you’re interested in Amazon display ads, but don’t know where to start or need assistance strategizing and managing them, please reach out to us at True Interactive.

Watch our blog for the final post in the series on Amazon video ads.

Image source: https://www.udemy.com/amazon-pay-per-click-advertising-ppc/

Coming Soon: A $1 Trillion Holiday Shopping Season

Coming Soon: A $1 Trillion Holiday Shopping Season

Retail

Get ready for a strong holiday shopping season. eMarketer has raised its 2018 holiday shopping forecast, with total retail spending growth expected to be 4.1 percent, up from eMarketer’s previous prediction of a 3.8 percent growth rate. The 2018 season will approach $1 trillion in spending, or $986.77 billion to be more precise. In addition, eMarketer says that retail ecommerce will grow at 16.2 percent, with that growth being driven largely by mobile.

“We expect that the 2018 holiday retail season will be one of the strongest in recent years,” eMarketer said in the October report, Holiday Shopping 2018. Reasons for a strong season include:

  • A strong economy that will fuel spending.
  • A lengthy shopping season, with 32 days occurring between Thanksgiving and Christmas, the longest possible calendar between these two landmark dates. “This will give shoppers ample opportunity to complete more of their holiday shopping online,” noted eMarketer.
  • The growth of mobile. “The other key growth factor is the extent to which mobile is fueling consumers’ ecommerce migration” said eMarketer. “Mobile now drives nearly two-thirds of online shopping activity, according to research firm comScore, and is inching ever closer to a majority share of ecommerce spending. Although shoppers are still much more likely to shop than buy on mobile, they are increasingly comfortable transacting on smartphones, thanks to more seamless, optimized experiences on both mobile web and apps.”

The prospect of a stronger holiday season is good news for retailers and consumer electronics firms. Per eMarketer, “Consumer electronics will prove popular during the 2018 season, particularly with an ever-expanding slate of voice-activated and connected home products hitting the market. Apparel and accessories will continue its online migration, while the toys and hobbies sector promises to get more competitive.”

The companies in the best position to thrive:

  • Have strong mobile commerce operations.
  • Capitalize on an expected intense period of spending around Black Friday and Cyber Monday. Black Friday is no longer a single-day event. The day really begins on Thanksgiving now.
  • Effectively invest in advertising across the digital world, with a focus on Google, Amazon, and Facebook.

To make sure you benefit from the holiday spend, be sure to check out some recently published resources from True Interactive:

  • Advertiser Q&A: Amazon Sponsored Ads,” a post from Samantha Coconato that discusses one of Amazon’s popular advertising products for businesses that have a presence on the platform.

At True Interactive, we’ve been actively working with clients to create successful holiday advertising campaigns online. Contact us if you need assistance with yours. We’re happy to help.

Photo by Anna Dziubinska on Unsplash

What Retail Apocalypse? Holiday Shopping Is Surging

What Retail Apocalypse? Holiday Shopping Is Surging

Marketing

Black Friday and Cyber Monday are bigger than ever. The so-called retail apocalypse might not be so apocalyptic after all – especially for retailers that have beefed up their online presence.

According to Adobe Analytics, Americans spent $19.62 billion online over the five-day period from Thanksgiving Day through Cyber Monday — 15 percent more than they spent during the same time frame in 2016. The top two days for online shopping were Cyber Monday (more than 81 million visitors) and Black Friday (more than 66 million). What can retailers learn from this explosive growth? Plenty:

  • Black Friday is more than a day. Black Friday is no longer a day, but a multi-day phenomenon, with retailers promoting online deals the entire week of Thanksgiving. In fact, major retailers were hosting Black Friday deals online before Thanksgiving week. Retailers are making Black Friday an element of a broader shopping experience.
  • Thanksgiving is becoming a big shopping day. As Adobe reported, Thanksgiving Day saw an 18.3 percent increase in online spending to $2.87 billion. In addition, a Foursquare report suggested that brick-and-mortar stores open on Thanksgiving – and open earlier in the day – would have an advantage over stores that were closed. Stores that promoted Thanksgiving Day sales, both online and offline, were likely to benefit as consumers combine shopping with eating on Turkey Day.

We expect a robust consumer spend during the holidays. Note that with Christmas Day occurring on a Monday, shoppers will accelerate their spend to avoid the problem of having to ship last-minute purchases over the weekend. Meanwhile there is still plenty of shopping to be done. Businesses that have planned ahead will win. It’s never too early to start planning for the 2018 holiday shopping season. To optimize your online spend all-year round, contact True Interactive. We’re here to help.

Image source: https://stocksnap.io/photo/RZWM4T2UAD

Best Practices in Applying Analytics to Digital Marketing Campaigns for Retail

Analytics Retail Analytics Spotlights

The-Marketing-ScopeThe retail industry depends heavily on digital marketing, and consequently, that makes online advertising very competitive. The online marketplace brings additional challenges that don’t exist in the brick-and-mortar world. Products, prices and even competitors change rapidly, sometimes by the minute.

To have any hope of achieving a positive return on advertising expenditures, online retailers must analyze what is working and what isn’t. While most digital marketers have an analytics program, such as Google Analytics, in place, more than half of them aren’t using analytics effectively.

These issues were the focus of a conversation I had with Eric Vidal, an Editor & Chief Content Officer, on this episode of “Marketing Mash,” a video series produced by The Marketing Scope. Watch the video, “Why Digital Marketing Analytics Is Important for Retail Sales,” to learn some best practices in applying analytics to digital marketing campaigns.