Chris "Coz" Costello, Senior Director of Marketing Research @ Kenshoo
Chris "Coz" Costello, Senior Director of Marketing Research @ Kenshoo
With direct integrations that include Google, Amazon, Facebook, Instagram, Bing, Pinterest, Snapchat, Oath, and others, Kenshoo’s advertising performance dataset spans over 3,000 advertiser and agency accounts across 20 vertical industries and over 60 countries. In this post, Kenshoo’s Senior Director of Marketing Research, Chris ‘Coz’ Costello, dives into two of the biggest U.S. shopping days of the year: Thanksgiving and Black Friday
This year, the prime holiday shopping season is going to be stretched to its maximum length with 32 days between Thanksgiving and Christmas. This means that consumers will really be able to take advantage of all of the deals and steals that this time of year has to offer.
Last year, Thanksgiving and Black Friday accounted for 37% of total spending what is now being dubbed The Cyber Five, which are the five days between Thanksgiving and Cyber Monday.
These two days have historically been huge for online retailers and can be a good first indication of how well the season will shape up.
The following are key trends we saw from last week’s Thanksgiving and Black Friday shopping days that provide strong evidence that 2018’s online holiday shopping season will end up being as big as the experts predict.
As we reported in our recent Digital Advertising Trends for the 2018 Holiday Season white paper, a majority of marketers planned to increase their spend across the major ad players including Google, Facebook, Instagram, and Amazon.
So how did Kenshoo clients spend versus our pre-holiday survey? So far, out of all advertisers who spent on the respective channels in both 2017 and 2018, 58% of Kenshoo clients increased their spend on Thanksgiving and Black Friday in Search and Social, and a whopping 78% of clients increased their Ecommerce channel ad spending this year.
This increase in holiday spending with the biggest publishers is no surprise. More money has been flowing to these publishers for some time now as they offer arguably the richest consumer datasets to surgically target ads across audiences. These ad platforms also offer the large inventory that marketers need during the holiday season, replacing complex portfolios of smaller publishers required for mass reach.
Ecommerce search advertisers increased spend across Thanksgiving—up 20% year-over-year (YoY)—and Black Friday (up 16% YoY) in 2018. This is a bit of a reversal from 2017 when Black Friday was the bigger growth day than Thanksgiving.
Compared to last year, search cost-per-click (CPCs) dropped during these two giant shopping days with the average price of a click decreasing 8% YoY on Thanksgiving and 10% YoY on Black Friday. This is consistent with what we saw in the Kenshoo Q3 2018 Quarterly Trends Report where we reported an overall CPC decline in search advertising of 15% YoY from Q3 2017, a trend driven largely by the growth of lower-priced mobile shopping ads.
Even though CPCs declined YoY during these key days, search click prices increased from $0.27 during the three week ramp-up period of November 1-21 to $0.41 on Thanksgiving and $0.50 on Black Friday. This reflects the increased value marketers put on shoppers with higher levels of purchase intent, which was justified by increases in conversion rate over the same time frame (4%, 5.6%, and 8.3%, respectively). We can also say with high certainty that advertiser ROI not only held firm in light of these market-inflated prices but even improved on Black Friday compared to early November.
Leading the charge into the holidays, once again, has been mobile search, and specifically, mobile shopping campaigns. Year-over-year spending on these ads grew by 44% and 43% for Thanksgiving and Black Friday, respectively, outpacing all other combinations of device and campaign type. Desktop keywords, on the other hand, received decreased investment compared to last year.
Ecommerce social advertisers continued investing heavily at the outset of the holiday shopping season with 32% YoY spending increases for both Thanksgiving and Black Friday. A YoY increase in cost per thousand impressions (CPM) of 32% across both days was the primary driver of those spending increases, accelerating from a YoY CPM increase of just 22% during the pre-Thanksgiving ramp-up period.
As the 2018 shopping season has progressed and purchase intent (along with the price of an impression) began to rise, consumers have responded by showing greater willingness to interact with these social ads from Ecommerce advertisers, and the engagement (website clicks, likes, shares, and other interactions) rate with these ads grew from 2.7% in the first three weeks of November to 2.9% on Thanksgiving and 3.1% on Black Friday.
Looking again at the overall YoY growth for Thanksgiving and Black Friday, two specific types of ads have played big roles. Dynamic Ads for Products have provided advertisers with a specialized, direct response-focused ad that has resonated with consumers, while Video ads continue to grow in prominence outside of branding campaigns. Each of these ad types outpaced overall social growth, and account for the lion’s share, if not all, of the increased spending in the channel compared to last year.
Ecommerce channel ads saw an incredible lift with a 3X increase in average daily sales on Black Friday. Already the third biggest digital ad platform in the world, Amazon is a true no-brainer for retail marketers throughout the year and even more critical during the holiday shopping season.
In our Q3 2018 Quarterly Trend Report, we showed Ecommerce advertising—largely driven by Amazon—tripled in marketer spend in the 7-month span between January and July of this year, giving us confidence Q4 would also show tremendous growth.
This year’s Black Friday produced 3X the average daily spend during the pre-holiday advertising month of October. Advertisers spent 134% (or 2.1X) more on Black Friday than the average daily spend in the three-week holiday ramp-up period (November 1 – 21) prior to Thanksgiving.
The investment paid off: Black Friday sales increased 348% versus an average day in October, and 229% versus the holiday ramp-up period in November. Because the advertising return outpaced spend this year, ROI jumped by 55% while cost-per-acquisition (CPA) dropped 16% compared to October; ROI increased 41% and CPA decreased 14% compared to November 1-21.
With Thanksgiving and Black Friday kicking off the most critical dates of the shopping season, Amazon advertisers are expected to continue on their record-setting pace.
Another Thanksgiving and Black Friday in the books! Check back here at the Kenshoo Blog on Wednesday to read the full 2018 Cyber 5 wrap-up.
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Purpose | Track surfing habits and provides Banners and tailored content |
Privacy Policy | https://trendemon.com/privacy.html?v=2018 |
Host(s) | .kenshoo.com |
Cookie Name | trd_pw |
Cookie Expiry | 1 year |
Accept | |
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Name | |
Provider | Trendemon |
Purpose | Track surfing habits and provides Banners and tailored content |
Privacy Policy | https://trendemon.com/privacy.html?v=2018 |
Host(s) | .kenshoo.com |
Cookie Name | trd_ma_cookie |
Cookie Expiry | 12 hours |
Accept | |
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Name | |
Provider | Trendemon |
Purpose | Track surfing habits and provides Banners and tailored content |
Privacy Policy | https://trendemon.com/privacy.html?v=2018 |
Host(s) | trackingapi.trendemon.com |
Cookie Name | trd_gvid, trd_gavid_2003 |
Cookie Expiry | 7979 years 6 months 2 weeks 1 day 22 hours 48 minutes 21 seconds |
Accept | |
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Name | |
Provider | Trendemon |
Purpose | Track surfing habits and provides Banners and tailored content |
Privacy Policy | https://trendemon.com/privacy.html?v=2018 |
Host(s) | .kenshoo.com |
Cookie Name | trd_first_visit |
Cookie Expiry | 1 year |
Accept | |
---|---|
Name | |
Provider | Trendemon |
Purpose | Track surfing habits and provides Banners and tailored content |
Privacy Policy | https://trendemon.com/privacy.html?v=2018 |
Host(s) | .kenshoo.com |
Cookie Name | trd_exitintentclient |
Cookie Expiry | 1 year |
Accept | |
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Name | |
Provider | Trendemon |
Purpose | Track surfing habits and provides Banners and tailored content |
Privacy Policy | https://trendemon.com/privacy.html?v=2018 |
Host(s) | .kenshoo.com |
Cookie Name | trd_cid |
Cookie Expiry | 1 year 25 seconds |
Accept | |
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Name | |
Provider | Terminus |
Host(s) | kenshoo.com |
Cookie Name | s-9da4 |
Cookie Expiry | 15 minutes 25 seconds |
Accept | |
---|---|
Name | |
Provider | Terminus |
Host(s) | kenshoo.com |
Cookie Name | kenshoo_tapad_id_sync |
Cookie Expiry | 1 day |
Accept | |
---|---|
Name | |
Provider | Terminus |
Host(s) | kenshoo.com |
Cookie Name | kenshoo_id_match |
Cookie Expiry | 1 week |
Accept | |
---|---|
Name | |
Provider | Terminus |
Host(s) | .xg4ken.com |
Cookie Name | kenshoo_id |
Cookie Expiry | 1 year |
Accept | |
---|---|
Name | |
Provider | Terminus |
Host(s) | kenshoo.com |
Cookie Name | d-a8e6 |
Cookie Expiry | 1 year 25 seconds |
Accept | |
---|---|
Name | |
Provider | google.com |
Cookie Name | pagead/1p-user-list |
Cookie Expiry | Session |
Accept | |
---|---|
Name | |
Provider | google.com |
Purpose | Used by Google AdWords to re-engage visitors that are likely to convert to customers based on the visitor's online behaviour across websites. |
Host(s) | google.com |
Cookie Name | ads/ga-audiences |
Cookie Expiry | Session |
Accept | |
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Name | |
Provider | Owner of this website |
Host(s) | .pardot.com, kenshoo.com, www2.kenshoo.com |
Cookie Name | visitor_id#-hash |
Cookie Expiry | 10 years |
Accept | |
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Name | |
Provider | Trendemon |
Host(s) | trackingapi.trendemon.com |
Cookie Name | api/events/pageview |
Cookie Expiry | Session |
Accept | |
---|---|
Name | |
Provider | Trendemon |
Host(s) | trackingapi.trendemon.com |
Cookie Name | api/events/uplift |
Cookie Expiry | Session |
Accept | |
---|---|
Name | |
Provider | Trendemon |
Privacy Policy | https://trendemon.com/privacy.html?v=2018 |
Host(s) | kenshoo.com |
Cookie Name | trd_ctahistory |
Cookie Expiry | Persistent |
Accept | |
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Name | |
Provider | Google Tag Manager |
Host(s) | kenshoo.com |
Cookie Name | _uetsid_exp |
Cookie Expiry | Persistent |
Accept | |
---|---|
Name | |
Provider | Owner of this website |
Host(s) | kenshoo.com |
Cookie Name | _uetvid_exp |
Cookie Expiry | Persistent |
Accept | |
---|---|
Name | |
Provider | Owner of this website |
Purpose | Enables the website to make variations of their landing-page. This is used to minimize bounce-rates, which means that fewer users leave the page immediately. |
Host(s) | kenshoo.com |
Cookie Name | ub-emb-id |
Cookie Expiry | Persistent |
Accept | |
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Name | |
Provider | adsrvr.org Pixel |
Purpose | Presents the user with relevant content and advertisement. The service is provided by third-party advertisement hubs, which facilitate real-time bidding for advertisers. |
Host(s) | adsrvr.org |
Cookie Name | track/cmf/generic |
Cookie Expiry | Session |
Accept | |
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Name | |
Provider | |
Purpose | This domain is owned by Twitter. The main business activity is: Social Networking Services. Where twitter acts as a third party host, it collects data through a range of plug-ins and integrations, that is primarily used for tracking and targeting. |
Host(s) | twitter.com |
Cookie Name | personalization_id |
Cookie Expiry | 730 days |
Content from video platforms and social media platforms is blocked by default. If External Media cookies are accepted, access to those contents no longer requires manual consent.
Accept | |
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Name | |
Provider | |
Purpose | Used to unblock Facebook content. |
Privacy Policy | https://www.facebook.com/privacy/explanation |
Host(s) | .facebook.com |
Accept | |
---|---|
Name | |
Provider | |
Purpose | Used to unblock Google Maps content. |
Privacy Policy | https://policies.google.com/privacy?hl=en&gl=en |
Host(s) | .google.com |
Cookie Name | NID |
Cookie Expiry | 6 Month |
Accept | |
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Name | |
Provider | YouTube |
Purpose | Used to unblock YouTube content. |
Privacy Policy | https://policies.google.com/privacy?hl=en&gl=en |
Host(s) | google.com |
Cookie Name | NID |
Cookie Expiry | 6 Month |