After Christmas the end of year clearance sale frenzy begins and consumers rush to stores, or online, to score deals, exchange gifts they didn’t want, and use their newly acquired gift cards. According to the NRF, two-thirds of consumers planned to shop after-Christmas sales. With the right strategy, advertisers can keep the holiday momentum running through the New Year.
The strong growth brands saw during the holiday season this year continued on through the end of 2016. When we looked at paid search data from Christmas Day through New Year’s Day, traffic and sales both increased by nearly 30%, and orders increased by 34% when compared to the same days in 2015. We also found an uptick in conversion rate (CVR) of 4% and no real change to average order value (AOV) YoY.
Although we saw the majority of traffic on PLAs vs text ads during this time, the majority of sales were driven by text ads. Brands will often decrease spend after Christmas in order to save on cost, so be sure to adjust non-brand bids based on seasonality.
It’s promising to see such strong growth at the end of 2016 and we’re optimistic about a strong year ahead for paid search.