2023 Black Friday eCommerce Trends
Earlier Start to the Season
The Rise of 'Black November' Black Friday and Cyber Monday sales have shifted from being limited to a single weekend event to an entire month-long campaign. Many retailers now launch early promotions in mid-to-late October, positioning November as "Black November." This trend allows brands to spread out promotions and avoid overwhelming customers while giving ample time for decision-making. Meta (Facebook and Instagram) data confirms this, with click-through rates (CTR) rising from mid-September and continuing into November, highlighting early consumer interest. Conversion rates (CVR), which typically peak in mid-November, indicate that businesses should scale their advertising efforts to capitalise on these periods when consumer intent is highest.
Increased Ad Costs on Social Platforms
Cost-per-thousand-impressions (CPM) on platforms like Meta traditionally rise as early as mid-October, with a steep increase around Black Friday. This increase makes it crucial for brands to budget properly, prioritising high-intent audiences and scaling spend during peak conversion periods.
Buy Now, Pay Later (BNPL) to Boost Conversions
With inflation concerns still present in many markets including the UK, BNPL services, such as Klarna, Afterpay, and Affirm, are becoming critical in driving conversions. In 2023, BNPL contributed to a significant increase in conversion rates, with some brands seeing up to a 30% uplift in average order values (AOV). As BNPL usage becomes more mainstream, businesses that adopt this model stand to gain more during the holiday shopping season.
Social Commerce & Influencer Marketing
Social commerce is taking off. In 2023, platforms like Instagram and TikTok played pivotal roles in BFCM campaigns for DTC brands. High-growth DTC companies capitalised on influencer marketing using the hashtag #BlackFriday, driving strong engagement on Instagram.
The Power of International
U.S. Market
In 2023, American consumers spent a record $9.8 billion during Black Friday, with some advertisers reporting Meta's ROAS doubling year-on-year. The U.S. market remains a lucrative target for DTC brands, with high potential returns during BFCM.
European Market
Despite inflationary pressures, European markets are projected to grow by 5% year-over-year during BFCM 2024. DTC brands focusing on Europe should consider scaling their ad spend strategically, especially during the mid-November to Cyber Monday window, when conversion rates typically spike.
How to Win Black Friday in 2024
Ensure Strong Unit Economics
When planning for Black Friday, it’s essential to focus on unit economics—the cost to produce and sell each item versus the revenue it generates. While increasing top-line sales during Black Friday is great, it shouldn’t come at the cost of profitability. Make sure you calculate your margins, factoring in promotional offers and advertising costs, to ensure your campaigns are contributing positively to the bottom line.
Build Anticipation and Start Early
To capitalise on the early interest observed on Meta platforms and social media, begin campaigns at least 2-3 weeks before Black Friday. This could include email marketing, teaser campaigns on social media, and exclusive early access offers for VIP customers. Early engagement can set the stage for a successful Black Friday and Cyber Monday.
Optimise for Mobile and Social Commerce
With mobile devices accounting for a significant portion of BFCM sales, it’s essential to ensure your website is fully optimised for mobile. Fast load times, intuitive navigation, and mobile-friendly payment options like Apple Pay or Google Pay are critical. Additionally, engage your audience through social commerce on Instagram Shopping and TikTok to drive impulse purchases.
Creative Assets and Testing Effective
Creative strategies are central to a successful BFCM campaign. Design top-of-funnel (TOF) assets to build awareness, while bottom-of-funnel (BOF) assets should drive urgency and conversion. Set up a comprehensive creative testing roadmap to iterate and identify the best-performing ad formats, such as carousel ads, videos, or static images.
Bundling for Increased AOV
One key strategy to boost average order value (AOV) during Black Friday is bundling. By creating bundles of products at a discounted price, you can increase overall order value, which in turn gives you more margin to offer competitive promotions without eroding profitability. Bundles also help mitigate the impact of steep discounts on individual items and can drive higher profitability in a promotion-heavy environment.
Capitalise on High Conversion Periods
The weeks from mid-November through Cyber Monday typically show the highest conversion rates. Plan flash sales, exclusive offers, and time-limited promotions during this period to capture the peak consumer interest.
Strategic Offers and VIP Customers
Rather than bombarding your core customers with discounts on items they would likely purchase anyway, use strategic offers to move customers towards adjacent product categories. This helps increase trial and can expand lifetime value by encouraging customers to explore other areas of your product range. Additionally, consider how to treat your VIP customers during Black Friday. Instead of focusing solely on offers, you can create exclusive experiences or gifting opportunities for your high-value customers as a gesture of appreciation for their loyalty
Key Recommendations
- Start Early: Launch campaigns early November to build momentum. Early-bird deals or VIP offers are effective in generating early sales.
- Ensure Profitability with Strong Unit Economics: Calculate margins carefully and ensure your promotions contribute positively to your bottom line.
- Treat VIP Customers Thoughtfully: Focus on creating exclusive experiences for high-value customers, helping to retain their loyalty beyond Black Friday.
- Leverage Social Commerce: Utilise platforms like Instagram and TikTok to target younger, mobile-first audiences and create engaging, shareable content, discoverable through hashtags.
- Optimise Creative and Retargeting: Focus on differentiated creative assets for TOFU and BOFU campaigns Personalise retargeting efforts to drive conversions efficiently.
- Make payments simple: Optimise your site for mobile and include social shopping features and flexible payment options like BNPL.
- Use Bundling to Drive AOV: Create product bundles to increase overall order value and support profitability, especially when offering discounts.
