The Holidays are Not So Merry for Facebook Advertisers. You woke up on Black Friday to at least 20 emails from e-commerce companies. The competition to grab holiday shopping dollars is fierce, and ad marketplaces like Facebook & Twitter are getting more expensive as e-commerce companies fight to acquire holiday shoppers. The cost increase for Facebook advertisers began a few days before Black Friday and will run through the first week of the New Year.
When costs increase, Facebook advertisers need to adjust or risk losing money. Brand advertisers will generally increase their bids to ensure they spend every penny of their budgets, and e-commerce companies will generally see an increased conversion rate to a purchase, offsetting some of the Facebook cost increase. Non-e-commerce performance marketers need to take a different approach. Here are a few recommendations for user acquisition performance marketers on Facebook during the holiday season:
Expect Lower Volume or Higher Costs
You’ll see a significant drop in ad impressions in December if you don’t increase your bids (and budgets).
Decide Whether to Bid Up
If your margins are thin, you may not be able to advertise profitably in December. If you can afford to increase bids and maintain profitability (or for the purpose of driving top-line growth), expect to increase your bids by +25% to maintain the volume you saw in November. In many cases, you can maximize profits without bidding up to “chase” volume.
Front-Load Your Ad Spend
Your cost per conversion will likely increase heavily from 12/15-12/25, and may not normalize until mid-January. If you’re working on a fixed budget, you should consider spending up to 75% of your budget in the first half of December (assuming you can do so efficiently).
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