CTV is evolving compared to traditional television through digital segmentation and measurement. This enables brands and retailers to reach customers with engaging TV ads more effectively and measure campaign effectiveness.
In this blog post, we will review last year's Black Friday statistics to optimize your strategy on Connected TV or decide to integrate ads on this channel, which has seen continuous growth throughout 2023.
Let's start from the beginning.
What is Black Friday?
Black Friday is a commercial event characterized by discounts, offers, promotions, and sales of various goods and services. It is celebrated both online (e-commerce) and in physical stores. The celebration originated in the United States, although in the last 5 years, it has spread to almost all parts of the world with impressive results that compete directly with other events.
From the consumer's perspective, it's a perfect event to acquire interesting products at reduced prices, especially with Christmas just a few weeks away.What is the origin of Black Friday?
Black Friday was first celebrated in the United States in the 1960s, and its creation is attributed to the Macy's store. The campaign aims to boost sales after Thanksgiving, celebrated in November. Gradually, its success spread, and some companies and stores copied these storage strategies.
It started being called Black Friday in the 1980s. Its success has been enormous, causing long lines and chaos in the streets as consumers seek the best prices on their favorite products.
When is the next Black Friday?
Black Friday is celebrated every year on the first Friday after Thanksgiving. In 2023, it will be on November 24th. Additionally, Cyber Monday will be celebrated the Monday following Black Friday.
How long does Black Friday last?
Originally, Black Friday lasted only one day. However, in recent years, it has been decided to extend its duration. We can find e-commerce and brands offering deals and discounts from the event day until a week later (Cyber Monday). In fact, pre-Black Friday deals start appearing in late October and early November.Black Friday 2022 Data
According to data released by CNN Business, online sales during the last Black Friday in the United States set a new record. There were over 9.1 billion dollars in sales, representing a 2.3% increase compared to the digital channels' results in 2021.
Regarding consumer spending on mobile devices, Black Friday saw an 81% increase in iOS and a 61% increase in Android compared to the average daily spending in November.
In the case of CTV, the numbers are particularly interesting when it comes to engagement. The ads had a Viewability Completion Rate (VCR) of 94% compared to 74% on PCs and 69% on mobile devices.
Remarketing was a key strategy during the last Black Friday. Why? In-store purchases made a comeback during Black Friday, being more prominent among younger shoppers. Over 40% of remarketing strategies for Android successfully engaged users globally.
-
A total of 87.12 million people made online purchases during Black Friday in 2022 worldwide.
Connected TV advertising experienced a 20.8% increase in the conversion rate for Black Friday 2022 and a 39% increase for Cyber Monday. This comes from a marketing channel whose main goal is to introduce a brand to new consumers.
Conversion Rate by Device
In 2022, consumers preferred to make purchases through their desktops, accounting for 52% of total purchases worldwide. However, purchases of mobile devices increased by 4% in 2022 compared to 2021.
The conversion rate on desktop computers is 5.6%, and on mobile devices, it's 3.3%. Tablets are among those with an average conversion rate of 4.8%. This result may be related to consumer buying habits. Mobile devices are often used to browse and search for products. However, many users opt to switch to a computer to complete their purchases.
Add-to-Cart Rates (Purchase Intent)
If we compare the Add-to-Cart rate recorded throughout the year, during Black Friday, we observe nearly a 40% growth. The annual average is 10.9%. On Black Friday, it's 14.58%. This means many more buyers are showing a clear intent to purchase.
Black Friday Cart Abandonment Statistics
On Black Friday 2021, this rate was 76.63%, much less than the annual average of 81.01%. This figure is further evidence that users who visit online stores during Black Friday have a much higher intent to purchase, add more products to their carts, and abandon less.
Furthermore, there was an average 10% increase in consumer spending in November 2022 compared to the same month in 2021, according to the latest report from AppsFlyer 'The State of E-commerce App Marketing'. While consumers bought more goods or purchased the same items that were more expensive due to inflation, it actually meant consumers absorbed the price increases.
Behavior by Age Group
The gap between in-store and online shoppers is highly generational, with younger generations using online shopping at a much higher rate than older ones. In fact, 86% of millennials/Gen Y/Gen Z say they will do their Black Friday shopping online rather than in-store.
Black Friday Trends: What to Expect for 2023?
The rise of Connected TV in the marketing channel mix is changing how advertisers approach their holiday campaigns.
Let's look at some recent data to understand why CTV should take a prominent place in marketing strategies for the upcoming Black Friday.
- Roku accounted for nearly 40% of CTV ad impressions, similar to its performance in the second half of 2022.
- Advertisers invested 4% more in CTV in the early first half of 2023 compared to the end of 2022.
- In the USA, streaming consumption on Connected TV increased by 21% in May 2023 compared to the same month the previous year.
- Smart TVs dominate CTV streaming: the total household streaming content through smart TVs has increased by 23% since May 2021.
- Outside the USA market, Connected TV grew on average by 16% in a year from May 2022 to May 2023, according to data collected by the Comscore study.
CTV advertisers are targeting very different and broad audiences during this time, aiming to focus on interests, geographic location, and market characteristics.
It's important to consider that 78% of consumers will purchase Christmas gifts in 2023, according to Numerator. Additionally, gift cards top the list of anticipated presents with 69% of people planning to purchase them in that manner.
Sales start earlier
In 2022, we saw many major retailers organizing several pre-Black Friday sales starting in October, and we expect this trend to remain strong.
Memberships are in focus
Black Friday shopping benefits for those with retail memberships were a growing trend in 2021, continued in 2022, and we expect to see even more in 2023.
Buy now, pay later remains the most popular
According to Adobe Analytics Insights, buy now, pay later orders increased by 85%, and revenue increased by 88%, compared to the previous week. This trend is expected to continue throughout 2023 and into the Black Friday shopping season in 2023.
The key to testing and learning
It's time to plan for the upcoming Black Friday and Cyber Monday. We recommend advancing your sales to run across all marketing channels in the weeks leading up to the events.
How to do it?
Test a broader range of audiences and utilize audience segment reports to discover audiences that drive return on investment (ROI).
Lastly, remember that retargeting and prospecting simultaneously generate better performance on their own than efforts made at the top of the funnel.
Ad format matters
We know that currently, users have shorter attention spans, and short-format videos meet this need by providing concise and engaging content. Moreover, this content also has a higher likelihood of being shared, driving consumer amplification.
Digital video is accelerating its growth: 81% of households with WiFi now stream on CTV.
The multitude of formats allows CTV to adapt to the desired audience.
The short-format ads leverage the sense of urgency through their brief runtime and, at the same time, manage to convey an authentic Black Friday experience.
As investment grows and conversion rates increase, advertising on Connected TV has a proven ability to be the most efficient channel at reaching a broader audience. Now, Track TV technology enables the measurement of user actions across various platforms after viewing an ad.
Comments