Hawke AI Insights – January 2024
Navigating Seasonal Dynamics: A Comprehensive Insight for eCommerce and Lead Gen Brands
JANUARY 24, 2024 - BY BARRON ROSBOROUGH
Authored in collaboration with 6Pages
The Resilient Landscape of eCommerce in a Post-BFCM World
December 2023 unfolded as a testament to the evolving resilience and strategic adaptability of eCommerce brands. In the aftermath of Black Friday/Cyber Monday (BFCM), a period typically marked by declining sales, the impact was less severe than anticipated as a record 200.4 million consumers shopped through those five days, an increase of nearly 4 million consumers, according to the National Retail Federation. A notable observation was the transaction rate in Google Analytics 4 (GA4), which experienced only a minor decline of 0.5% from November, compared to the 0.7% drop in the previous year. This suggests an effective engagement with customers and an enhanced understanding of consumer behavior during the holiday season.
Decoding the Subtleties of Consumer Engagement
Consumer engagement in December 2023 showed interesting trends. The reduction in clicks from November to December was less pronounced. On Google Ads, the decrease was just 3%, against a 9% drop in 2022. Similarly, on Meta platforms, the decrease was 5% in 2023, compared to 11% in the previous year. These figures indicate sustained consumer interest, offering opportunities for targeted marketing strategies even post-BFCM.
Note: These results also coincide with an exodus of advertisers from the X platform and likely a shift in spend allocation to make up for that.
The Stability of Cost-Per-Click: A Strategic Win
A standout aspect in 2023’s eCommerce trend was the consistency in cost-per-click (CPC). Unlike 2022’s increasing CPC, the stable cost in 2023 suggests a balanced and effective ad spend, allowing brands to maintain visibility and engagement without escalating costs.
Lead Gen Brands: Contrasting Rhythms in a B2B Context
For lead generation (lead gen) brands, particularly in the B2B sector, December represents a contrasting rhythm. As consumer shopping peaks, business procurement decisions slow down. This was reflected in the 12% reduction in sessions from November to December 2023, following a similar trend from 2022, highlighting the importance of understanding seasonal business cycles in lead gen marketing.
Understanding the Nuances of Goal Completion Rates
Despite the decline in sessions, goal completion rates in GA4 remained stable throughout the fourth quarter. This indicates that the changes were more related to market and economic factors rather than a decline in operational or marketing efficiency.
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Revisiting Paid Media Strategies: A Call for Optimized Allocation
The 7% increase in media spend on Google & Meta platforms for lead gen brands in December suggests a need for strategic reevaluation. This increase, despite lower volume, might indicate an overemphasis on end-of-year spending. A more balanced budget allocation throughout the year could yield more consistent and effective results.
Embracing Adaptive Strategies for Future Success
The final quarter of 2023 provided valuable lessons for eCommerce and lead gen brands. eCommerce showed adaptability in a challenging period, while lead gen brands faced unique seasonal fluctuations, emphasizing the need for nuanced budget allocation. These insights pave the way for more sophisticated, data-driven strategies, allowing brands to navigate the complex markets with greater agility and foresight.
Potential Headwinds
Potential Tailwinds
At A Glance:
Takeaways for eCommerce Brands
Takeaways for Lead Gen Brands
This article originally appeared on Hawke Media’s blog - HERE
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