TECHNOLOGY

Google, Facebook and Amazon dominate Black Friday ad spend

BY Marianne Wilson

Black Friday reigns supreme when it comes to retailers’ holiday advertising spend.

That’s according to a survey by advertising software company Nanigans, which indicated that retailers plan to invest more of their spend on Black Friday than any other day this holiday season. Marketers revealed that a quarter of their annual ad budgets are used to target shoppers during Black Friday/Cyber Monday weekend.

With total U.S. digital ad as spend by retailers expected to exceed $23 billion in 2018, retailers plan to allocate almost $6 billion dollars in media toward the Black Friday four-day period. Retailers indicated that Google search and display (35%) and Facebook (18%) dominate their planned channels, with Amazon a close third (15%).

“Nearly half of U.S. consumers now start their product search on Amazon, meaning the retail giant offers an attractive model for brands hoping to capture the attention of active buyers during the 2018 holiday shopping season,” said Ric Calvillo, CEO and co-founder of Nanigans. “However, retailers’ decision to pump ad spend into Amazon may be shortsighted. The company has built an ecosystem that makes it both an attractive ecommerce ad platform and a retailer’s top competitor.”

Notably, marketers overwhelmingly value Black Friday itself over the Saturday, Sunday, or Cyber Monday that follow it, with 63% planning to prioritize ad budgets on that day alone. Conversely, just 20% of brands plan to spend more serving digital ads to Cyber Monday shoppers.

Additional key findings from the study include:
• More than half (51%) of retailers plan to keep 2018 holiday season ad budgets about the same as last year, while 48% plan to increase the amount they spend on holiday ads.

• Retailers don’t focus much of their holiday ad spend on last-minute shoppers, which could be a missed opportunity as it’s a pivotal time to generate brand exposure. Almost half (47%) prioritize early-season campaigns, 48% focus on prime-season buyers, and just 5 percent target late-season shoppers.

• Retail marketers plan to dedicate 14% of their campaign budgets to video ads during the 2018 holiday shopping season.

• For a majority of retailers, the holidays positively impact acquiring more customers with significant value, but the trade-off is the fact that 25% of marketers report dramatically higher cost of customer acquisition during this time.

• The holiday advertising season starts early for the majority retailers, with 64% of those surveyed implementing campaigns before Halloween.

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

Polls

Do you think retail brands should steer clear of taking a stance on social and political issues?
TECHNOLOGY

Walmart teaming up with Advance Auto Parts

BY Marianne Wilson

Walmart continues to strengthen its omnichannel offerings via partnerships and acquisitions.

On the heels of its acquisition of online retailer Bare Necessities, the discount giant announced it has entered into a partnership with Advance Auto Parts to create a specialty auto parts store on Walmart.com. The site, expected to begin rolling out in the first half of 2019, will provide customers with access to Advance’s extensive assortment of aftermarket automotive parts, accessories and maintenance items.

The two companies also plan to work together to explore new fulfillment options, including home delivery, same-day pickup in a Walmart or Advance store and installation of some parts.

“This year, we’ve been incredibly focused on building our offering on Walmart.com to ensure we have the specialty assortment that our customers are looking for,” said Phillip Oaks, VP and group general manager, retail merchandising, Walmart eCommerce. “In line with this focus, we are thrilled to be partnering with Advance, which will bring us its industry leading automotive product assortment and know-how. This comprehensive partnership will enhance almost every aspect of the automotive customer shopping experience – from the product offering online to fulfillment capabilities.”

The new online specialty store will complement Walmart’s automotive offering of common parts and accessories online and in stores, including its offering of tire, lube and battery services in more than 2,500 Walmart Auto Care Centers across the country.

“This is an exciting partnership for both Advance and Walmart customers,” said Tom Greco, president and CEO, Advance Auto Parts, which operates nearly 6,400 stores. “At Advance, we are absolutely committed to building a best-in-class omnichannel experience and Walmart is an undisputed omnichannel leader. Partnering with Walmart enables us to share our extensive product offering and trusted advice with an increased number of do-it-yourself customers and supports our long-term strategic objectives.”

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

Polls

Do you think retail brands should steer clear of taking a stance on social and political issues?
TECHNOLOGY

CVS doesn’t intend to leave room for Amazon to disrupt healthcare

BY CSA Staff

CVS Health has no intention of giving Amazon any leeway when it comes to competing in the healthcare segment.

Larry Merlo, CVS Health’s CEO isn’t “lying awake at night worrying about Amazon,” but he also has no intention of leaving any room for disruption, according to CNBC, which cited an interview Merlo had with David Rubenstein, president of the Economic Club of Washington, D.C.

Amazon announced its $1 billion acquisition of online pharmacy company PillPack in January. Meanwhile, CVS Health is inching closer to closing its acquisition of health insurer Aetna. The deal is valued at $69 billion.

Merlo’s top priority is ensuring that CVS meets the needs of its customers. The company plans to accomplish this by continuing to listen to its customers and filling any unmet needs, the report revealed.

Overall, the company’s goal is, “Don’t leave any white space for Amazon to disrupt,” Merlo said in the interview.

To read more, click here.

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

Polls

Do you think retail brands should steer clear of taking a stance on social and political issues?