Conversion rates increase significantly on Black Friday
Last week we published the blog post Get ready for Black Friday. Here we informed you that tactics are your most important tool and gave some concrete tips on how you can create good tactics for your Google Marketing activities on Black Friday.
In this post, I'm going to focus exclusively on finances and budgeting in Google Ads, so you can learn how to get the most out of your Google Ads budget on Black Friday. There's no doubt that on Friday, November 27th can become the day of the year when you achieve the highest daily revenue, as not only the number of conversions but also conversion rates on your website can increase significantly on this day. Sales can easily surpass the days leading up to Christmas, making it the wildest shopping party of the year.
Don't believe me? Then be convinced here.
This screenshot from one of our customers' Google Analytics account speaks for itself. In the image, you can see that I've compared last year's Black Friday to a Friday two weeks earlier. As you can see, the conversion rate, number of conversions and average order value from Google Ads ads increased on Black Friday:
- Conversion rates, increased by almost 8 percentage points, corresponding to an increase of 431,94 %.
- The number of Transactions steps with 5.650 %.
- Turnover steps with 7.034 %.
The example is from one of our Google Ads customers and is supported by similar trends in other ad accounts. The increase in conversion rate is particularly interesting. Because it means that the value of a visitor increases significantly and the profitability of Google Ads increases accordingly.
To get the most out of the day, you need to focus on your Google Ads budget. Therefore, I'll end this post with a tip or two:
Leverage Google Ads on Black Friday
Customers are literally going crazy with their credit cards, and as a business owner, you need to take advantage of that! But that doesn't mean you can just sit back on the couch and watch Netflix.
Because the battle for customer attention online is fierce on the big day - and we can expect it to be even fiercer this year as we've been introduced to COVID-19.
So...
If you want to make the most of the potentially increasing conversion rate, you need to set your Google Ads budget and bids optimally. If you do this, you can look forward to your revenue being significantly higher than any other day of the year.
So how do I do that? You're probably thinking.
The formula is simple:
Since conversion rates often increase significantly on Black Friday, it can often be a very good business decision to increase your budget so that it is not used up and at the same time increase your CPC (cost per click) on this one day. If your conversion rate - as in the example above - increases significantly, you get much more value out of each visitor and a campaign can still be profitable even if you increase your CPC significantly.
Yes, I know - it sounds overwhelming, but you should keep your cool. On the day, you should monitor performance in real-time data in Google Analytics, but expect there to be times when data is delayed. It would be a shame if your budget expires and performance is at its peak, so keep an eye on that too.
- So rule #1. Drop the budget constraint - turn it up a notch. This is especially true in product areas where you are the price leader and expect a lot of conversions.
In addition, remember that on Black Friday, CPC (cost per click) will typically increase as competition for customers increases. So you need to bid up, otherwise you risk ad impressions going to your competitors instead. Keep an eye on whether your bids are high enough for your keywords to get traffic.
- So rule no. 2. Remember to bid up to your max CPC. You can start by bidding around 30% and see if it's enough. Conversely, it can also be too high if you only get traffic without conversions on a few keywords. Then you need to bid them down or pause them.
Last but not least: Happy Black Friday!
