With the festive shopping season nearing its peak, advertisers are gearing up for the final surge in consumer spending. Microsoft Advertising has released its Festive Season Marketing Playbook, offering key insights and strategies to help businesses maximise their reach and revenue during this period. The playbook focuses on understanding consumer behaviour and using Microsoft’s advertising capabilities to their fullest.
Understanding the peak revenue periods
Some advertisers may not yet see a revenue peak, but there’s no need for concern. Historically, significant spikes in revenue occur around Black Friday and Cyber Monday. This year, an increase in consumer spending is expected during these days.
The National Retail Federation predicts a 3-4% rise in holiday spending in the US, possibly reaching as high as US$966.6 billion. High spending is also expected in the UK and Germany, highlighting the season’s global influence.
The shift towards deal-seeking behaviour
A significant trend this year is the increased focus on bargain hunting. More than two-thirds of US shoppers are spending extra time looking for coupons and deals, particularly during the ‘Cyber-5’ period.
This period, including Thanksgiving, Black Friday, Small Business Saturday, Sunday, and Cyber Monday, has become vital for consumer spending. Advertisers need to adapt to this trend by aligning their strategies accordingly.
The critical role of search in purchasing decisions
Search remains crucial in guiding online and in-store purchases, helping shoppers discover new retailers, research before buying, and compare prices.
Gen X consumers, for example, heavily depend on search to find the best prices. In the EMEA region, deal-seekers spend 33% more time searching than the average shopper.
This trend provides a significant opportunity for targeted advertising, mainly through platforms like Microsoft Advertising, which access billions of global monthly searches.
Post-Cyber-5: Keeping the momentum
After the Cyber-5 period, search volumes remain high, offering ongoing opportunities for advertisers. Microsoft’s research indicates that many holiday clicks and conversions happen during this period, with a lower Cost Per Acquisition (CPA). Therefore, maintaining active advertising campaigns after Cyber-5 can be very beneficial.
Planning for the post-holiday return period
The post-holiday return period is another crucial aspect for businesses. Searches for returns peak shortly after Christmas and continue into the new year. Preparing for this surge and adjusting marketing strategies is essential for reducing potential losses and maintaining customer satisfaction.
Microsoft’s holiday planning tips
To make the most of the holiday season, Microsoft advises advertisers to:
- Start campaigns early to attract early shoppers.
- Use remarketing and dynamic search ads for holiday-specific products and promotions.
- Highlight value messages and promotions to draw in deal-seekers.
- Employ AI for personalised offerings and responsive ad formats.
- Utilise store support for profitable online growth, including Local Inventory Ads and Mobile Device Modifiers.
Microsoft Advertising offers more tips and resources in its Festive Holiday Season Marketing Playbook and through on-demand webcasts, helping advertisers navigate this vital period.
