Conversion rate rises 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 to set up a good tactic for your Google Marketing activities on Black Friday.
In this post, I'll focus exclusively on the economics and budgeting of Google Ads to help you make the most of your Google Ads budget on Black Friday. There is no doubt that on Friday 27 November can be the day of the year when you achieve the highest daily turnover, since not only the number of conversions but also conversion rate on your website can increase significantly this day. Sales can easily surpass the days leading up to Christmas, making it the wildest shopping party of the year.
You don't believe me? Then be convinced here.
This screenshot from one of our clients' Google Analytics account seems to speak 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, both the conversion rate, the number of conversions and the average order value from Google Ads increased on Black Friday:
- Conversion ratesincreased by almost 8 percentage points, which corresponds to an increase of 431,94 %.
- The number of transactions step with 5.650 %.
- Turnover step with 7.034 %.
The example is from one of our Google Ads customers and is supported by similar trends on other ad accounts. The increase in conversion rates 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. That's why I'm rounding off the post with a tip or two on this:
Take advantage of Google Ads on Black Friday
Customers are literally going crazy with their credit cards, and you as a business owner should of course benefit from this! But that doesn't mean you can just sit back on the sofa and watch Netflix.
Because the battle for customers' 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 get the most out of the potential increase in conversion rates, you need to set your Google Ads budget and bids optimally. If you do, you can look forward to your conversion rate being significantly higher than any other day of the year.
So how do I do that? You might think.
The formula is simple:
As conversion rates often increase significantly on Black Friday, in many cases it can be a very good business to turn up the budget so that it is not used up, while increasing your CPC (price per click) this one day. If your conversion rate - as in the example above - increases significantly, you get much more value out of each visitor, and so a campaign can still be profitable even if you increase your CPC significantly.
Yes, I know - it sounds violent, but you should have ice in your stomach. During the day, you should track 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 runs out and performance is top notch at the same time, so you need to keep an eye on that too.
- So rule number one. Drop limited budget - turn it up significantly. This is especially true in product areas where you are a price leader and expect a lot of conversions.
In addition, remember that on Black Friday, the CPC (cost per click) will typically increase in line with the greater competition for customers. So you need to bid up, otherwise you risk ad views going to your competitors instead. Keep an eye on whether your bids are high enough for your keywords to get traffic.
- So rule number 2. Remember to bid on your max CPC. You can start by bidding about 30% and follow if it is enough. Conversely, if you're just getting traffic without conversions on individual keywords, that may be too much. Then you need to bid them down or pause them.
Last but not least: Happy Black Friday!