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Great Balls of Fire!

The results we’re seeing in the retail sector for Black Friday and Cyber Monday are absolutely off the charts! Many, many retailers are up 50% to 150% Year over Year for those days! One long time client of ours had their best day ever on Black Friday…by a factor of TWO!

Traffic volume is way up, AOVs are up, conversion rates — really, really amazing stuff. Let us hope this continues!

This has to be driven by:

  1. Improving consumer confidence;
  2. A large degree of pent up demand, particularly for luxury goods;
  3. Increasing, free media coverage of the promotional events surrounding BF and CM; and
  4. The promotions themselves.

The concern is that because of #3 and #4, we may have conditioned consumers to shop earlier, hence these big gains year-over-year are simply cannibalizing sales that would have come later. However, I don’t know a retailer that wouldn’t make that trade. Indeed, convincing folks to start shopping earlier is widely believed to also get them to spend more.

As long as the discounts, shipping deals, marketing expenses and other promotions don’t leave the advertisers with nothing to put in the bank — remember, the lifetime value of Holiday buyers is much, much lower than folks who buy in other seasons — it looks like we’re in for a great Q4.

Let’s hope so!

Are others seeing the same thing?

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Comments
13 Responses to “Great Balls of Fire!”
  1. Robert says:

    Yep – one of our ecommerce stores had it’s best day ever on this years Black Friday followed by it’s 2nd best day ever on Cyber Monday.

    So, I’d say that’s encouraging.

    We ran some new marketing protocols this year and it really paid off. And we learned some things and are planning to be better prepared for next year too.

    We suspect we did about half of what we could have done with a more thorough and agressive PPC campaign. But there’s always next year. Live and learn.

  2. Congratulations, Robert, and thanks for sharing! Here’s a post we wrote last year on the subject of anticipatory bidding. Hope it’s helpful! http://www.rimmkaufman.com/rkgblog/2009/10/26/holiday-bid-management/

  3. Adam Audette says:

    Seeing the same thing here, George. Huge sales for our clients, and at least one record-setting day. Amazing performance out there!

  4. Thanks for sharing, Adam. Go consumers go!!!

  5. Tim says:

    This is not a surprise to me. I was bombarded by more email marketing than ever before. I even searched in-depth for some good deals, but I just walked away not buying things that I could live without.

  6. Jc says:

    I’m not in the retail vertical so I don’t see those kind of numbers, but good for you guys :)

  7. James says:

    Hi George,

    My Cyber Monday sales were up 100% over last year. I’m a little worried that Cyber Monday sales may have cannibalized sales from this week. It is too early for me to know for sure, but the drop in gross sales revenue for 12/6 was a little steeper than I expected and today isn’t trending any better.

    I had hoped for agressive spending 12/1 – 12/22 from pent up consumer demand. What I may end up with is an amplified version of last year, were sales mere muted/fizzled as December progressed. It may be the new consumer mentality, e.g. bargain hunting, cautious spending, frugality.

    What do you think?
    James

  8. James, we’re working on a blog post showing exactly the same phenomena you’re seeing for the majority of our clients. Most folks are seeing declines YoY for the past two days.

    We seem to be shifting sales earlier and earlier in the season.

    More details to come, provided my crack team has a chance to write up their findings!

    George

  9. James says:

    Thanks George,

    Always good to hear that my experiences are not unique. At least I know its not a mistake or oversight on my part.

    James

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