Black Friday Cyber Monday Recap
Despite predictions, this year’s “Cyber Week” set new records in the world of e-commerce. Shopify reported a whopping $7.5B USD in sales over BFCM - that’s a 19% increase over last year (source). With 1R managing cross-channel marketing strategies across multiple brands and industries, we gained valuable insights into the successes and challenges of this year’s Black Friday Cyber Monday period.
With more anticipation surrounding BFCM, increased competition, and inflation pressures, consumers were more intentional in their purchases and stayed in the consideration phase longer this year. One Rockwell’s multi-funnel Digital Marketing strategies set clients up for success by nurturing customers from discovery to purchase, both before and during promotions. Here are some things we noticed this year!
Longer Sale Periods
Conversion rates leading up to Cyber Week promotional periods lagged significantly this year due to brands starting their BFCM push earlier than ever. 1R’s clients ran their online sales for a minimum of 7 days, but those that started their sales ahead of competitors and ran sales for longer (even at a smaller discount) saw greater success.
With inflation and economic uncertainty, consumers spent more time in the discovery and consideration phase and were less likely to purchase on the first touchpoint. Across industries, consumers viewed products approximately 12 times before making a purchase this BFCM (source). By delivering highly targeted ads and messaging depending on stage of the funnel and refreshing ad creative throughout the promotion period, 1R was able to nurture customers from purchase to discovery across key channels like paid social, paid search, and email.
Early Access / VIP Periods
Early Access and VIP presale periods were critical this year, both in converting existing customers and acquiring new leads. With anticipation for promotions in November, customers who discovered brands leading up to BFCM waited for promotions to go live.
1R’s Digital Marketing strategy focused on new user acquisition and lead generation in the months leading up to BFCM. Brands that scaled prospecting campaigns before their sale period and teased their upcoming promotion saw increased success from Day 1, with many of 1R’s clients driving 25-50% of BFCM revenue during pre-sale or early access periods. Email played a considerable role in driving early access revenue, but leveraging early access messaging in paid advertisements led to significant increases in CTR and ROAS.
Paid Search Success
Paid Search was the dominant driver of online sales for 1R Digital Marketing clients, with an average of 27% of total e-commerce revenue driven from Paid Search versus an average of 21% of revenue being generated from Paid Social channels such as Instagram and Facebook.
With more brand competition on paid social than ever, leveraging Paid Search to get in front of in-market customers already in the consideration phase was key this year. Brands that offered giftable products such as handbags and accessories saw increased conversion rates on search compared to apparel brands. This year more than ever, customers already knew what they were looking for during the highly anticipated holiday season, and meeting these customers where they were searching was highly valuable.
- Record discount rates - lowest average discount rates in 2 years
- U.S. consumers spent $35.27 billion online, 4% higher than in 2021.
- 122.7 million U.S. consumers shopped in physical stores over Cyber Week, a 17% increase from last year, while 130.2 million shopped online, a rise of 2% over 2021.
- 51% of online sales came from mobile (compared to 46% in 2021)
BFCM Shopify Highlights:
- A record-setting BFCM weekend with $7.5 billion in sales.
- Sales were up 19% from last year.
- 73% of sales were made on mobile devices and 27% on desktop.
- Peak spend was on 11/25 at 12:01PM.
- Top product categories: Apparel & accessories, health & beauty, and home & garden.
- Online sales were up 2.3% compared to 2021, with $9.12 billion spent online.
- The average consumer discount rate for toys was 31.8%, 23.4% for electronics, and 13.8% for apparel.
- U.S. in-store sales on Friday rose 12% from last year, while ecommerce sales increased 14%.
- U.S. Cyber Monday online sales reached $11.3 billion, the most ever for this day.
- Cyber Monday sales were 25% greater than Black Friday online sales.