Goodwin noted that while conversion rates were down 9% in November, promotions had more impact in driving revenue. In the days after a sale was launched, ROAS and conversion rates increased more than they had after promotional periods in 2022.
Promotions also played a big part in the strategy at performance agency Wpromote. Heavy discounts of 50% to 70% were more impactful, while offers of 25% or 30% were less likely to move the needle for brands, said Darren D’Altorio, vice president of social media.
But instead of characterizing the Q4 period as full of challenges for marketers, D’Altorio saw the dislocation as something brands could have better used to their advantage.
Mixed revenue for brands
During this November, total ad spend among around 50 Wpromote ecommerce clients was $58 million, down 15% from $68 million in November 2022, D’Altorio said. Nonetheless, clients notched some impressive results, including November conversion rates up 22% year-over-year and ROAS 36% higher than the previous November.
But revenue for brands during this period was more mixed. Many brands saw single-digit increases in revenue from the previous period, with some big winners and a few losers, he added, and not blockbuster results.
“It was an underinvested Black Friday and Cyber Monday,” D’Altorio said—something his clients are working to correct in December, where ad spend is already $40 million, compared to $37 million for all of December 2022.
“Softness through mid to late Q3 created an environment where budgets had to be reflighted for a Q4 that was underserving of the demand in market,” he added.
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