Review: 2018 Black Friday & Cyber Monday Ad Spending Trends
Ever since writing a Super Bowl commercials recap blog featuring iSpot.tv, I occasionally read their informative emailed reports about major advertising events including Super Bowl Ads, Christmas Advertising, and Black Friday. Their industry-leading TV ad measurement and analytics always are intriguing to me since we do provide TV commercial video production services and I am always curious as to how the most popular companies and ads perform during the heightened advertising cycles each year. The most recent report I received and will discuss in this blog is about Black Friday and Cyber Monday 2018. If you would like to follow along with the article, below is a link to view/download the full report in which I will be referencing.
Black Friday Trends
Looking at the Black Friday data from the last three years, it is quite interesting to see the total amount of ad spend compared to the number of impressions. In 2018, brands spent about 15 million dollars less, but generated more than a billion more impressions than in 2016. I would contribute this to the ever-growing mediums and devices you can now stream videos/television from pretty much anywhere.
It does not surprise me that car companies are towards the top of the list in terms of holiday spend. They are rolling out newer models and are incentivizing potential buyers with their “Black Friday/Cyber Monday” deals. I personally have seen more Chevy ads on television than any other car company so it makes sense to see them at the top of the ad spend list.
Cyber Monday Trends
As the ever-growing popularity of “Cyber Monday” continues to increase, we saw that in the major increase of budget in 2018; with the total budget totaling 2016 AND 2017 combined. With all the mobile and tablet accessibility, shoppers are now skipping the dreaded lines and total pandemonium of Black Friday and shopping from their couch or on the go.
Along with Black Friday, Cyber Monday advertising’s cost per thousand impressions (CPM) has decreased each year since 2016. What I take from the gradual decrease in CPM is that marketers have a more defined distribution strategy and are targeting the correct demographics and people for their ads. This leads to a higher retention rate and a lower impression cost.
Top Brands on TV in November
Now don’t get me wrong, I have definitely noticed the multiple Geico marketing campaigns that have been noted as some of the funnier commercials on TV, but I did not expect them to have such a drastic spend for the month of November. Geico spent over $40 million dollars more than the next competitor! That blew me away. And after looking down the list at the amount of impressions that other companies received while spending significantly less on their advertising, it is tough to jusify that high of a spend.
After doing some more research, it seems as though Geico has invested widely in advertising as opposed to other expenditures. In an interview with Ad Age, Geico’s vice president of marketing, Ted Ward stated, "We are better off investing in technology than getting new marble floors and doors.” The thought is that by keeping costs down, Geico can then offer lower prices, which the foundation of their massive advertising. Also according to Ad Age, a large part of Geico’s marketing success is the result of its use of consumer data to dictate its advertising plans.
In review, Black Friday and Cyber Monday shopping will continue to grow as long as companies are offering insanely cheap discounted prices on holiday favorite items as well as the ad spend that goes along with it. Companies are always looking to hit their year end goals and a lot of them can be made or broken by these few days or weeks. What do you think of this years Black Friday and Cyber Monday advertising?
About The Author
As the Director of Internet Marketing, Tyler is responsible for overseeing the management of Farmore and their client’s brands, including consumer insights, digital marketing, agency management, marketing effectiveness, social responsibility, and employee communications.
After growing up in Connecticut, he moved to the Tampa area as an experienced marketing professional in 2016. Tyler’s professional marketing and advertising career includes more than 6 years of working in an array of marketing departments across many industries.
Tyler holds a Bachelor's degree in Sports & Business Administration from the University of Connecticut.