In-app transactions from social ads grew a quarter year-over-year
WHO: StitcherAds is the leading platform for ad solutions and shopping experiences that drive incremental sales on Facebook, Instagram, Pinterest, and Snapchat.
WHAT: StitcherAds has released data on retail advertising and ecommerce trends for this year’s Black Friday and Cyber Monday. For its analysis, StitcherAds examined online purchase data for 22 top US retailers that advertise on Facebook and Instagram through the StitcherAds platform. Each retailer spent at least $300,000 per month on Facebook and Instagram ads. Ultimately, StitcherAds found the following:
Black Friday: There was a near 60% (57%) increase in audience reach and a 14% decrease in Facebook and Instagram CPMs compared to 2019.
“The increased audience penetration and year-over-year decrease in CPMs is evidence of Facebook’s ability to open up ad inventory and drive efficiency, even during a year of increased spend and competitiveness in the auction,” said Bryan Cano, Director of Strategy.
Retailers also increased their Black Friday Facebook and Instagram ad spend by 39%, allowing for a 19% increase in purchases via those ads. This led to a 12% increase in year-over-year omnichannel revenue (app, in-store and online sales) versus last year.
Cyber Monday: Similar to Black Friday, retailers saw increased audience penetration with a 76% surge in reach and a 25% drop in CPMs for this year’s Cyber Monday campaigns. Additionally, retailers increased their Cyber Monday social ad spend by more than one quarter (26%).
However, there was a 5% decrease in omnichannel purchases and 12% decline in year-over-year omnichannel revenue, brought on by a 43% decrease in in-store revenue.
“While Cyber Monday is typically seen as a digitally-native event, it has driven in-store sales in past years,” said Cano. “In 2020, COVID-19 changed that. Additionally, early promotions spread Cyber Monday demand across the entire month of November, minimizing Cyber Monday revenue. This year we likely experienced the beginning of the end of Cyber Monday as a single-day event.”
Revenue Channels for Retailers: Overall, for Black Friday and Cyber Monday, SitcherAds’ retailers saw a 10% increase in omnichannel revenue year-over-year, with the following breakdown of revenue per channel:
- In-App Soars: In-app transactions — purchases made within a retailer’s app, driven by a Facebook or Instagram ad — accounted for 22% of overall sales revenue — up one quarter (25%) year-over-year.
- Web Stays Strong: There was an 11% rise in Black Friday and Cyber Monday web sales generated through Facebook and Instagram ads across the 22 retailers.
- In-Store Dip: With the coronavirus pandemic getting worse this winter, and more retailers scattering their promotions across November, in-store foot traffic via Facebook and Instagram ads dropped 16% year-over-year.
“This holiday season has been a different one unlike all other years,” added Cano. “The pandemic and lockdowns have definitely made it difficult for consumers to access their regular go-to stores and had to pivot to online shopping. But despite all the challenges, we saw retailers experience increased audience penetration and strong omnichannel revenue overall.”
StitcherAds technology helps advertisers to scale full-funnel performance marketing campaigns on Facebook, Instagram, Pinterest, and Snapchat. The company has empowered some of the largest advertisers worldwide using data-fueled automation to drive sales online and in-store.
