Managing your holiday media budget is key to maximizing performance during the annual shopping frenzy. Without the right strategy in place, you risk over-investing in an under-performing segment of your program, while leaving opportunity on the table in another area.
Metrics that matter
Before planning your holiday media budget, understand metrics. CPCs and CPMs increase substantially during the holiday season. Research indicates you should expect to pay at least 2.5x your normal CPC or CPM to show Facebook ads on Black Friday. To add to the mix, Black “Friday” is stretching out to last a month, according to Google. Although CPCs increase during the holidays, keep in mind that the potential for revenue growth is substantial.
Rethinking holiday KPIs
You might have been able to hit your 3-to-1 ROAS goal in July when CPMs were $ 5. However, come November, this may be unrealistic as CPMs increase by 2 or 3x. Proactively adjust efficiency expectations to avoid missing out on the increased order volume opportunity. Instead of aiming for a strict efficiency goal, consider optimizing to a volume target, perhaps with a cap on minimum ROAS, or cost-per-engagement you’re willing to accept for any given segment of your program.
Holiday media budget framework
Most of the year, digital media budget pacing can be fairly consistent. However, during the holidays there are major shopping days, promotional events, and changes to customer behavior. The goal for holiday budget pacing should be to optimize spend for the highest revenue-per-impression (RPI) days, rather than to spend the budget evenly from day to day.
Further, the fewer constraints placed on budget allocation, the better performance will be. Rather than enforcing strict budgets between ad networks, regions, brands, or products, set targets and enable your team to make investment decisions based on performance in real time.
Holiday shopping behavior is unlike any other time of the year. We hope these well-thought-out rules can provide a budget planning framework to gain maximum traction this holiday season.Business & Finance Articles on Business 2 Community