Facebook Holiday Advertising Mandates: RoAS Increases Justify Spend Increases
November 9, 2015
This is an excerpt from our Intelligence Brief, Facebook Advertising During Holiday 2015. Download the full resource to learn how to navigate the most competitive advertising time of the year.
This holiday season, marketers should justify higher delivery costs for holiday sales campaigns with higher Return on Ad Spend (RoAS).
SocialCode data from a sample of major U.S. retailers and brands show that between October and Cyber Monday last year, when bidding for actions in the desktop News Feed, CPM costs grew 100 percent. This makes sense, as competition (and therefore price) increases during holiday time, when marketers flood the platform to serve impressions to people who converted in the past, and who have a full keyboard and large display to browse and buy products.
Direct-response marketers that want to ensure their holiday promotions reach the right people therefore need more budget than non-holiday campaigns; an expense justified by greater-than-normal RoAS.
To illustrate, SocialCode analyzed holiday data from a sample of direct-response marketers that ran large-scale campaigns in 2014. Clients increased spend 424 percent from non-holiday benchmarks on Black Friday, 1023 percent on Cyber Monday and 387 percent on Thanksgiving weekend. These spend surges were justified by an average 135-percent increase in RoAS across all three events, compared to non-holiday sales benchmarks.
Download the full Intelligence Brief, Facebook Advertising During Holiday 2015.