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  • Victor Montalvo

How The Holidays Affect Your Digital Campaigns

With the end of the year quickly approaching, digital ad campaigns are in for a wild ride. This season's shopping frenzy has customers on their toes with Black Friday and Cyber Monday kicking off holiday savings followed by Christmas just around the corner - making it an essential time to maximize engagement.

The holidays are an ideal time to reach out and engage with customers - however, this period can present unique difficulties for digital marketing. With increased costs and a shift in user behavior due to seasonal shopping habits, campaigns must be optimized creatively in order maximize potential market share.

How does the holiday season affect your business?

With the holidays just around the corner, it’s high time to make sure your digital advertising strategy is up-to-date and ready for success! Here are a few tips on optimizing your campaigns so you can take advantage of all that holiday cheer. So, sharpen those pencils - let's get into tweaking your marketing plans.

Why do digital ad costs increase during the holidays? Q4 is a time of increased consumer activity, with two major events at the end- Black Friday/Cyber Monday and Christmas. B2C businesses capitalize on this period to boost their profits through greater sales. Companies across industries increase their digital advertising budgets during these lucrative holidays in order to target more customers. With a growing appetite for digital marketing, competition is heated. As with any auction-style system, demand exceeds supply and prices soar - that's the economics of online advertising.

As the leaves begin to change and November rolls around, so too do digital advertising costs. Big brands often start promoting their Black Friday deals as soon as October ends - a sign of the impending surge in spending on ads during this time period. By late-November, you can expect costs for digital marketing services to have skyrocketed by more than double.

How does user behavior change during the holidays?

As the holidays approach, buyer activity surges along with digital ad costs. Consumers have become discount-seekers during this season - instead of looking to buy more items, they're after better prices for what's on their list. By December, shoppers are focused on gifts and other festive purchases as part of seasonal tradition.

The pandemic also has spurred a massive digital shift when it comes to advertising and buying goods - resulting in an even more competitive online purchasing environment.

The holiday season is a time of joyous celebration, but it also brings with it changing consumer priorities. While spending on gifts and travel spike during this period, purchases in other categories may get delayed until the New Year as people juggle their budgets to cover everything they need for the holidays.

What type of companies benefit from holiday advertising?

Some companies see this time of year as a curse and others as a blessing. Where your business fits should impact your Q4 ad strategy and budget. Companies that benefit from the holidays During the holiday season, e-commerce businesses have an opportunity to capitalize on increased consumer demand. Offering discounts without sacrificing profit is a great way for these companies to attract new customers and increase sales by giving savvy online shoppers what they want. For direct-to-consumer companies, the end of year can be a critical period for success. A balanced and strategic ad spend during this season may provide lucrative returns; consider how you can maximize your investment to make it count.

Companies that don’t benefit from the holidays

There are roughly 2 kind of companies that don’t benefit from these holidays: B2C companies with more complex products and services. As many consumers continue to seek a balance between their holiday spending and the dreaded post-holiday budget, it can be difficult for low margin businesses to appeal. Big discounts aren't always going to result in sales during this time of year; instead, shoppers may wait until they've recovered financially before taking action on large purchases.

B2B companies. During the holiday season, many businesses are too busy to process and benefit from new opportunities. With a focus on winding down one year and beginning another, decision-makers may be taking some time off or investing in their own advertising campaigns - leaving little room for outside influence.

What can your business do to be prepared for the holiday season?

If your business is unlikely to see a direct benefit from the holidays, here are some tips on how to be prepared.

Find a way to get into the holiday spirit

Around the holidays shoppers tend to be in a giving state of mind; capitalize on this by incorporating festive elements into your marketing such as offering discounts, adding some humor (like gifting your product/service for Christmas), or including holiday-inspired copy and graphics. You can turn potential customers’ Yuletide mindset into revenue. Be aware of the cost increase

With so many businesses sticking with their campaigns without much variation, it's important to always take into account any potential cost increases or performance dips. If you don't mind a couple of months of lackluster digital ads, then there’s no need to adjust your strategy for the other more successful months - however if changes are needed make sure that those updates will bring maximum ROI.

Shift your budget If your return on investment isn't what it usually is, don't hit the brakes. Consider pouring money back into your marketing plan with a focus for the new year! This extra push can come in many forms - from revamping collateral materials to investing more heavily at Q1's start and beyond. Making these smart investments now could pay dividends down-the-line. Looking to Adapt Your Ad Strategy for The Holidays? Keep your digital ad strategy up to date and get the most from each advertising dollar. Montalvo Marketing understands small business marketing and is here to help you stay ahead of trends with effective, well-executed ads tailored for today's competitive environment. Contact us today to learn more!

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