If the holiday shopping season seems to be starting earlier, you are not imagining things. When I look at our digital advertising spend for retail clients, I see an larger-than-usual uptick going back to the first full week of November – more so than we expect to see for that time period. It’s not just that we are spending more. Consumer search volume for holiday-related content is spiking by as much as 30 percent higher than normal for early November. Why?
I see two factors at play:
- Consumers remain confident in the economy. According to Deloitte, “With disposable personal income climbing and consumer confidence staying elevated across the U.S., the holiday shopping season could bring healthier sales for retailers to cap off a tumultuous year.” Deloitte made this prediction in September. The reasoning is sound, and so far consumer behavior is bearing out the prediction.
- Thanksgiving is happening earlier. We’ll celebrate Thanksgiving Day Thursday, November 23, the earliest since 2012, when Thanksgiving was celebrated on November 22. An earlier Thanksgiving means an earlier start to the holiday shopping season. Retailers launch their pre-Black Friday promotions earlier, putting consumers in shopping mode earlier.
As a result, we’re busier than ever as we manage holiday-related online advertising for our clients. But there’s a catch: the season is going to end sooner, too. Here’s why: Christmas lands on a Monday. Consequently, carriers will not deliver on Christmas Eve (Sunday), and they’ll charge a premium for a Saturday delivery December 23.
As a result, we’re prepared to decrease our digital advertising spend sooner than we might do so normally. Why? Because we don’t want to create a spike in demand for retailers’ products too close to Christmas Day, when a retailer is unable to fulfill the order by December 25.
If you manage digital advertising for a business that caters to holiday shoppers, make sure that you:
- Do a gut check on search traffic now. Are you seeing a spike in demand as we did for our clients? If so, is your budget set up to handle the increase?
- Be ready to decrease your holiday ad spend sooner than you normally would to avoid putting too much stress on your fulfillment services with Christmas deliveries being complicated by December 25 landing on a Monday as noted.
- Monitor your Google AdWords account very closely. As my colleague Mark Smith recently wrote, Google has empowered itself to increase your AdWords budget by twice the amount you had planned. Consequently, if you experience unusual spikes in demand (as might be happening already), your monthly budget could be spent much sooner in the month than you had planned – which could jeopardize Black Friday and Cyber Monday advertising. As Mark notes in his blog post, for shorter-term campaigns, you may need to set your spend levels lower to have some level of protection, especially if you know you’re going to get high-volume traffic within that time period.
How is your holiday spend going? Are you seeing an unexpected spike, and how are you responding? If you need help managing digital advertising (during the holidays or otherwise), contact KeywordFirst. We’re here to help.
Image source: https://static.pexels.com/photos/291762/