To get you prepped for Black Friday, we analyzed 2019 & 2020 FB Ads data from ~200 DTC brands, who are spending between $50k and $1m per month in the US market.
The data was compiled by Varos, the leading real-time KPI benchmarking software for DTC brands. Our platform has some of the highest visibility into digital marketing trends so we pulled some surprising and informative metrics to help you prep for Black Friday.
TL;DR of lead-up to Black Friday (Nov 9-29) - based on 2019 & 2020
- Link CPCs up 35%
- Cost Per Purchase down 15%
- Conversion rate up 60%
- ROAS up 40%
- Spend up 60%
Based on 2019 & 2020 data, ecomm stores have a breakthrough sales opportunity leading up to Black Friday.
We can reach some actionable insights by looking at the data week-by-week (see charts below). Historically, FB ads have been profitable two weeks prior to and the week of black Friday. However, one week prior to Black Friday has been less profitable.
Cost per Purchase decreases due to strong increase in conversion rates, partially offset by increased CPC
Overall, Cost Per Purchase decreased an avg. of 15% in 2019 & 2020 in the runup to Black Friday.
What are the driving forces? Well first, we see a big increase in conversion rates of about 60%. Shoppers are much more likely to buy and merchants are heavily investing in closing leaky funnels.
However, the CVR increase is offset by increased CPCs of about 35%, leading to the more modest decrease in CPP noted above.
In the weekly breakdown below, you can see the avg. Cost Per Purchase drops in the two weeks prior to Black Friday and the week of Black Friday, though it increases in the week prior to Black Friday.
CPC increases due to skyrocketing CPM, slightly offset by increased CTR
In the weeks leading up to Black Friday, CPCs have spiked by 35%.
The main cause was an avg. CPM increase of 52%. CTRs have been mixed the past couple years (+25% in 2020 and -15% in 2019).
On a weekly basis, CPMs & CPCs spike on the week of two weeks before Black Friday, then actually drop one week before black Friday and finally spike even sharper during the week of Black Friday.
ROAS increases due to decrease in Cost Per Purchase
ROAS increased by +20% and +60% in the few weeks before Black Friday in 2019 and 2020, respectively.
This increase is driven by a lower Cost per Purchase. AOV actually stayed relatively flat.
On a weekly basis, ROAS increases a bit two weeks before Black Friday, then down one week before Black Friday, and finally goes skyrockets on the week of Black Friday.
If you'd like to see all of these metrics in real time for companies in your industry with similar AOV and ad spend levels, get in touch with us at email@example.com for access.