Target audience may not be marketers' biggest worry when it comes to advertising during a mega sales, according to a recent whitepaper done by Facebook and Mediacom. In a statement to Marketing, Josh Gallagher, chief product officer, APAC at MediaCom, said for a successful mega sales campaign, the research indicates that brands should not focus on any customer cohort in particular.
"When it comes to mega sales, the more buyers you are able to capture across ages, the better your sales performance will be. What we have seen through the COVID-19 period is a broadening of the eCommerce buyer profile, with many older demographics buying online for the first time. This is a great opportunity for brands to capture a new audience online," he added.
The whitepaper showed that 71% of consumers globally are reported to have spent "more time using" their mobile device during the COVID-19 outbreak. The data also showed that a key group driving the increase in online shopping are Gen X and Boomers, instead of the digitally-native Millennials. In a press conference, Gallagher also said more consumers are willing to try new brands online. Due to the pandemic, people from different segments and age groups are driven to online platforms. Hence, brands should think of new demographics that they usually do not target.
Additionally, brands should ditch the 50-50 mentality, which says that advertising should be half-focused on prospecting, and half on retargeting efforts.
According to the data collected, the 50-50 ratio is only applicable four weeks prior to the mega sale. The study found that top-performing brands started to ramp up in prospecting efforts three weeks prior to the sale, and started scaling down as the week of sale approaches, putting more focus on retargeting consumers. On the week of sales, top-performing brands were targeting more on loyal consumers (53%) as compared to prospecting consumers (47%).
The study found that more consumers are starting to talk about indulging in little moments of joy or little luxuries. Hence, Gallagher said brands have more opportunities now to maximise sales through experiences. "Price will always be king, but there are more ways to play at value," Gallagher said.
The report showed that on average, the fastest growing advertisers create 11 times more creative assets, and this contributed to up to three times more revenue growth.
When it comes to creating value, however, there are a plethora of attributes that consumers want brands to represent. The report showed that consumers from different markets have different expectations of brands. For Singapore, 67% of respondents want brands to be smart, while half of them (51%) expect brands to be innovative and authentic. As for Malaysia, most respondents (60%) expect brands to be innovative, while 50% expect them to be trendy and cool, as compared to a lower percentage of Singaporeans (34%). Meanwhile, in Indonesia, brands are expected to be first and foremost innovative (79%).
The Facebook-Mediacom study also showed that brands should start advertising as early as four weeks prior to a mega sale for optimal effectiveness. The optimal length of time that successful brands promote sales had always been at approximately two weeks. However, based on the findings, Facebook and Mediacom saw clear benefits in advertising three or even four weeks out from a sale-day. It is also found that brands that advertise earlier saw lower average cost-per-advertising, and much higher return-on-advertising.
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