Workshop: How brands can prepare for a tough Q4
This year, Q4 presents unique challenges for ecommerce brands. Sales will be early and fierce and consumer behaviour may be influenced by the cost of living.
Ecommerce marketers discussed how to best drive performance in this landscape at Nest’s ‘How to prepare for a tough Q4’ workshop. Here are three key findings for brands advertising on paid social:
1. Consumer intent to purchase will start early
According to 2021 data, the foothills of Q4 are when click-through rates start to rise as consumers start browsing for products from early November.
Conversion rates sharply increase at around the same time, largely driven by advertisers discounting early.
2. Falling competition presents opportunity
As some brands have pulled back from the auction due to budget cuts, CPMs have dropped, presenting more opportunities on paid social for testing this Q3 and for conversion into Q4.
3. Bargain hunting will drive early discounting
Some consumers will be affected by the increasing cost of living, which will affect their household disposable income. These consumers will seek the best discounts, avoiding full-price purchases throughout Q4.
Brands will discount early to meet this demand – and demand for bargains, combined with high levels of deadstock, will lead to early discounting.
In this environment, it is important to establish a strong foundational set up and align with Meta best practices. Over Black Friday itself, brands should orient to maximise purchases, as the return outpaces costs.
Finally, brands should reach customers early to take advantage of cheaper costs reaching shoppers earlier and building momentum.