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Drive sales with holiday promotion strategies

Drive sales with holiday promotion strategies


[MUSIC PLAYING] SPEAKER: If you’re
anything like me, you’re always on the
lookout for a great deal. In fact, about 60% of consumers
say that finding a good deal is what they enjoy
most about shopping. This is especially true
during the holiday season. The National Retail
Foundation reports that one third of shoppers
said that their holiday weekend purchases were driven
specifically by promotions. This also applies
to retail locations. Research shows that local
shoppers are hunting for deals before they go to the store. With the holiday season
rapidly approaching, many retailers are gearing
up to offer their biggest promotions of the year. These promotions provide
your business a chance to stand out from
competition and to ultimately drive a high volume
of sales and revenue. Having a digital strategy
that drives customers to your website, physical
storefront, or both during these promotional
periods can largely contribute to the amount of
sales you’re able to drive. For this reason,
many retailers ask, how do I highlight my
holiday deals and promotions to drive purchases? And once I’m doing
so, how do I ensure that my business is prepared
for the expected spike in sales? While we’ve got you covered
with digital strategy recommendations, it’s important
to note that planning is crucial prior to the holidays. Determine what products
you want to promote and for how long with
your merchandising team, identify which
promotions historically drove the highest
profits or conversions, and be sure to account for
new products, doorbuster deals, and sitewide promotions. If you offer
international delivery, you can promote your
products alongside international holidays,
such as Diwali, Hanukkah, Christmas, and Boxing Day. In addition to identifying which
of your products to promote, machine learning and automation
will be a major key to success this holiday season. Google Ads features, like Smart
Creatives and Smart Bidding, not only ensure your
promotional offers will be shown to the right
person, but will also do so at the right time and
with a message that resonates. Today’s holiday shoppers
have heightened expectations for both quick and
relevant messages. For this reason, it’s
more important than ever to have a creative strategy
that takes audience, messaging, formats, and more
into consideration. [MUSIC PLAYING] A great place to
start is with formats, like responsive search ads
and responsive display ads. Both formats allow
you to create ads that adapt to show more relevant
messages to your customers on the search or
display networks. For responsive
search ads, simply include five to 15 distinct
headlines and two to four distinct descriptions,
and machine learning will automatically do
the mixing and matching to create new search ads. While it may take some time to
create high quality assets up front, responsive
search ads can save you time with A/B testing and
ad optimization, which is especially
important when running brief or flighted promotions. In the event that
you want to ensure a message for a limited
time offer is shown to everyone seeing
your ads, you can control where individual
headlines and descriptions appear in a responsive
search ad by pinning them to specific positions. To maximize the reach
of your performance and utilize your existing
high performing assets, make sure to have at
least two expanded search ads in the same ad group with
your responsive search ad. You can further engage
last minute shoppers and deal-seekers looking
for end-of-year sales using additional
creative features. Countdown timers
dynamically update time left for a sale in your ad copy
to create urgency and drive shoppers to your site and store
to take advantage of deals. Promotion extensions
provide another space to catch the eye
of customers that are searching for special
offers relevant to your business by allowing you to display
monetary or percent discounts to your products or services. Lastly, you can
attract customers by using sale price
annotations and merchant promotions on your shopping ads
to help your products stand out from the competition. Remember, it’s not just about
showing the right message to shoppers with your Creative– timing is everything. Servicing a limited
promotion to someone for a product or an offer
that they’re not currently interested in will not
necessarily drive sales. That’s why Smart Bidding is
pivotal to ensuring your offers and deals are shown
both to the right person and at the right time. [MUSIC PLAYING] Smart Bidding automatically
optimizes your bids for every auction
to help improve your return on investment. There are four auction-time
Smart Bidding strategies you can take advantage
of this holiday season, depending on the
goals you have set and the actions you’re looking
to drive from your ads. For many, this means
sales and store visits. If you’re looking to drive
as many sales as possible within your campaign
budget and do not plan on tracking
values in Google Ads, Maximize Conversions
bid strategy will allow you to do so. If you have a return
on investment goal, such as a target
cost per acquisition or a target return
on ad spend, you might want to use a Target
CPA or Target ROAS bid strategy instead. Similar to Max
Conversions, Target CPA is intended to
drive sales volume. However, it does so while
optimizing toward your cost per acquisition goal. Target ROAS is great
for advertisers that value conversions
differently and want to maximize revenue
instead of sales volume while optimizing toward a
return on ad spend goal. For this reason, it’s
a popular bid strategy for retailers that sell various
products of different values. Target ROAS is
especially important for omnichannel
retailers, because it can optimize for both online
and offline customer actions with different values. Lastly, a Maximize
Conversion Value bid strategy is available for shopping– and as of recently, search– to drive the most sales
revenue within your budget without the constraint
of a Target ROAS. [MUSIC PLAYING] We recognize that
retailers often know in advance
the events that may lead to increased sales, and
even increased purchase rates, during specific periods and want
to understand how to use Smart Bidding during those periods. For example, an upcoming
weekend sale or a scheduled TV spot during Black Friday. When it comes to Smart
Bidding, the good news is that in the event you’re
expecting increased traffic, the more volume, the better. However, in many
cases, when you’re running some of your
biggest annual promotions, we understand that there’s
also an expected increase in the rate at which
customers purchase from you after clicking on an ad. In this case, the
recommended action will depend on whether this
change in conversion rate is a longer trend
or is a short spike. An example of a
longer trend where you might be expecting to see a
gradual increase in conversion rate is over the
Christmas season. For longer trends of
three or more days, no immediate changes to
your Smart Bidding campaigns are recommended. Not only does the
system take into account the gradual shift in conversion
rate in these instances, but it also learns
from how behavior changed on a particular day
of the week in the past. So seasonality is
explicitly accounted for. However, if you do have
a different marketing goal for the season– for example, if you’d like
to achieve a 20% higher return on investment based on
previous holiday performance– you’ll want to make
this adjustment to the Target CPA or ROAS. Be cognizant of how
budget is being spent over these high traffic days. In many cases, you’ll
need to increase it to ensure your campaigns
aren’t limited by budget, which can prevent your bid
strategies from being able to work their magic. For promotions like Black
Friday, on the other hand, you might typically see
a spike in traffic that lasts for less than three days. If you’re not anticipating
a significant change in your conversion rate, then
no changes are necessary. However, if you’re anticipating
a sudden and significant increase in conversion rate– for example, over 30%– we recommend you adjust
targets before the sale starts and revert back to
your original target after one conversion cycle
or when the sales end, whichever comes first. For example, let’s say you
expect your conversion rate to change from 2% to 4%
for an annual one-day sale. For your search and
display campaigns, you can change the target
metric in accordance to this expected
change, meaning you would double your Target CPA or
cut your Target ROAS in half. You can do this via
manual target adjustments or with the help of
seasonality adjustments. Seasonality adjustments
are an advanced tool that can be used to inform Smart
Bidding of expected changes in conversion rates
for future events, like promotions or sales. Festive promotions
are your opportunity to stand out and capture
sales, so be sure your digital storefront
is open for business. Don’t miss out on relevant
and converting traffic by cutting your campaign
bids and budget short. This is your time to shine
by attracting new customers to your online and
physical storefronts and enticing them
to close the deal. With the right planning and
digital strategy in place, we’re confident you’ll rise
to the holiday occasion. [MUSIC PLAYING] For more holiday
readiness tips, check out the Google Ads YouTube channel.

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