Last year on Black Friday in the US, there was an 18.9% increase in online sales YoY and on Cyber Monday a 20.6% increase in online sales, according to IBM. These two important calendar days are only weeks away and retailers must be prepared.
Black Friday is a term which has been around since the 1960's (possibly before) yet the term Cyber Monday is relatively Modern (2005). Cyber Monday comes from Shop.org who coined the term after analyzing increased Internet traffic and sales on the first day that most people return to work after the Thanksgiving weekend. Originating from the Thanksgiving weekend in US, these two dates are now recognised globally. Businesses plan detailed online advertising campaigns to target consumers who are ready to spend over this time period.
According to the CMO: "There were dual online sales records for Thanksgiving and Black Friday, which saw 400 million visits during the two-day period. The increase in Thanksgiving online sales surpassed last year, breaking the billion-dollar mark at $1.06 billion, with actual spending up 18 percent."
As online sales soar around the holiday period, there has been noteworthy research into the platforms and devices used. A study that examined mobile shopping activity across 20 retailers during the Black Friday/Cyber Monday period, found that:
- Total mobile visits increased by 93%
- Overall mobile transactions increased 219%
- Total revenue from mobile transactions increased by 368%
Around the same period Adobe reported that Facebook Advertising Click-through-rate (CTR) was up 365% year-over-year and cost-per-click (CPC) increased by 29%. More people are clicking through but at a greater cost. Competition is increasing yet so is the opportunity.
Why do people use mobile to make purchases?
With the numbers of visits and sales rapidly increasing over the holiday period, it is important to question why. Based on our research from a YouGov Survey, the three most important reasons are:
- The ability to buy out-of-hours (50%)
- The ability to compare prices more easily (47%)
- The ability to buy anywhere, at any time (46%).
Essentially, the customer wants to have complete flexibility and visibility when it comes to purchasing on a mobile and should be granted this. Customers want to buy on their terms.
What to do: create and develop a mobile advertising strategy
Savvy retailers will have locked down their campaigns for the upcoming holiday season. For companies still unsure on the best approach, there is a clear trend. Why spend time and money in driving people to stores, when potential customers are happy to make purchases on their phone? Through targeted Facebook advertising you can deliver a product directly to a specific audience. Reach the customer where they are happy to purchase. This holiday season is set to be huge, make sure you don't miss out!
