In the blink of an eye, Christmas nears and 2021 comes to an end. According to Amazon, 67% of consumers continue to buy gifts after Black Friday until the end of the year, while particular categories see as high as 78% repurchase within 3 months. Christmas and year end promotions pose an invaluable opportunity for brands to drive sales and increase brand loyalty, for which we have prepared 4 must try tips to help sellers achieve these goals!
Increase Repurchase and Conversion Rates
When it comes to eCommerce, the primary role of Christmas and the holiday season is to stimulate brand loyalty, product repurchase as well as retrieve consumers who were lost during Black Friday.
If the goal is to increase repurchase frequency, pinpointing which ASINs perform the best within store repurchases is key, this can be checked in "Brand Analysis Report ABA"-"Repetitive Purchase Behavior". Analyzing different time dimensions and downloading weekly and monthly reports separately allows sellers to observe ASIN repurchase trends and optimize advertising distribution.
Advantages of using DSP+SD advertising:
Based on SparkX Marketing’s AMC data modeling analysis, users who are touched by multiple ad formats have a higher conversion rate. DSP+SD advertising increases product exposure, influences the consumer decision-making process and increase conversions.
DSP has better off-site exposure, while SD can provide more accurate reach within the site. The combination of the two creates an influx of closed loop traffic and enables off-site tracking within the site.
Both DSP and SD can reach audiences who have previously browsed/purchased a product through remarketing.
For categories that require a longer purchase decision making time, DSP advertisements can reach users who have browsed specific/competitive/complementary products but have yet to make a purchase. The lookback period can be set between 14-30 days and target specific audience groups; at the same time, SD product placements allow for premium ad positioning, closing the loop on traffic with DSP ads to prevent any traffic from going to waste.
For fast-moving consumer goods categories, ad conversions are better achieved once customer loyalty has been established. Through DSP+SD advertising, sellers can reach audiences who have purchased a specific/competing product from a particular category to win over competitor audiences, where SD product placement functions target key competitor ASIN products for strategic brand defense tactics.
For seasonal products like Christmas decorations, gifts, etc., DSP advertisements can be expanded based on tagged audiences with a high performance and conversion history, which further expands to all audiences who have viewed this category while adding special holiday audience tags such as "Gifts Givers", "Christmas Shoppers", etc.
Branding-Building and Brand Awareness
Building brand awareness during periods with higher traffic flow are often more effective for audience expansion purposes. As brand building consists of the upward flow of the marketing funnel with a focus on the upper stages, product selection will lean towards main ASINs with a greater accumulation of data. Overlapping DSP advertising reports can be used to uncover high performing audience tags to further expand on audience groups.
When creating an order for DSP ads, we can set the target to awareness and adjust the frequency of exposure based on audience reach. From the perspective that “new users<have a demand for product categories but are unfamiliar with the brand’s users<users who have browsed products but have yet to make a purchase" frequency of exposure is set to increase. For upper-level traffic, the frequency is generally set within 7 days while high intent audiences can be set by day or hour.
Christmas is a holiday dedicated to family and loved ones, where the fastest and most effective advertising format is OTT. With the advantages of providing creative and non-skippable brand content, OTT video advertising is more native and memorable to users. For overseas consumers, the holidays are a time of joy, warmth, family and love. Therefore, the look and feel of ads during this time of the year have to successfully convey these elements and feelings in order for brands to make an emotional connection with consumers.
Inventory Health and Clearance
If product sales have been mediocre, the possibility of seeing a sudden peak during sales/holiday season is unlikely. However, through advertising optimization and discount promotions, there is still a possibility to see an increase in sales and prepare for new product launches in the coming year.
Inventory health can be evaluated through inventory performance indicators:
A WOC between 3-6 weeks means that the inventory is relatively healthy. If the conversion rate is high, focus on inventory ratio and increase the advertising exposure to promote sales. If the conversion rate is low, combine SP+SD ads to increase high relevance traffic and boost conversion rates.
Clearing inventory shouldn’t take much ad budget. The most effective advertising strategies involve bundling sales + discount promotion, in which SP+SD advertising are used to target related products with high traffic to prevent traffic loss. SD ads can also be used for remarketing purposes, highlight discounts, bundle specific products and promote sales. Finally, making use of SP ad’s negative placement can help with reducing costs. The strategy is to only keep accurate traffic that leads to conversions.
Preparing for New Product Launches
Although most brands focus on increasing sales during the holiday season, trying new product layouts and gathering data for ASINs that have a short shelf time or low sales can help improve ad performance and conversions for campaigns in the coming year.
The basics of new product advertising are to target main ASINs of specific products to increase exposure opportunities. Therefore, early-stage promotions can start with SD product placements. SD advertising has a better placement on product detail pages compared to SP advertising. VCPM's bidding method helps increase product exposure. After SD ads have gathered enough sales data, it optimizes products based on consumer feedback and then implements DSP ads based on existing user insights to reach consumers in and out the site.
According to data gathered by Adobe Analytics, the number of visits on mobile phone pages during the holiday season is as high as 62.2%, however, final transactions and purchases are still executed on PC, indicating that consumers prefer to browse and shop on their mobiles phones but complete the checkout process on their computers. This insight provides a valuable direction for operational optimization. For awareness and consideration stage ads, more budget needs to be allocated on mobile channels, while conversion advertisements should be served on PC.
Customizing advertising goals for different types of ASINs and combining different advertising strategies are key to success this holiday season. We wish all sellers a wonderful Christmas and happy sales!