True to our motto “Working Out Loud”, we at GANDT Ventures exchange our thoughts and ideas on current news topics in the world of online marketing, digital retail, and e-commerce. This helps us uncover opportunities that can be used for companies and our clients as part of our daily business.
But most of all, it is a lot of fun and a great way to share knowledge.
Our podcast-style chats are available to anyone who is interested to find out more about what Google, Facebook, Amazon and the likes are up to.
The Black Friday Ads strategy of the company Snocks
The German company Snocks, which sells socks, boxer shorts and t-shirts, has grown massively over the years. Now they published exciting figures on LinkedIn about their Black Friday sales. In one day they made 100K euros in sales through Facebook. They used an extremely special strategy for Black Friday. Because they set up 700 different ads over 22 campaigns in Business Manager.
It’s interesting how they target groups, choose formats and design content, all across different platforms and USPs. Usually 1 or 2 campaigns are created with different content and geographic plays. Creating 700 pieces of content is almost impossible and it is not needed.Of course, such campaigns can be used to find out how the customer reacts to the different ads. However, the Snocks ads only differed in detail, (30% and 50% discount coupons).
Types of discounts that attract the customer’s attention
Customers respond to discounts, but they can be given in different ways. Now the question is which type of discount gets the most attention from customers and brings in revenue. There are percentage discounts and savings discounts, where a monetary amount is deducted. In the case of search and display ads, savings discounts work better. In the case of Socks, it is different because Socks are not expensive and work more with Percentage Discounts. For a large amount, the savings discount seems much more generous to the customer because they can see the amount they can save. It is only clear what kind of discount works best and makes sense through an A/B test.
Nevertheless, we believe that this information about which discounts work better should be generated before Black Friday. Only then can the campaigns be set up optimally. On Black Friday, the battle between advertisers is fierce and everyone is trying to get the customer’s attention, so a strong strategy should be developed beforehand.
Targeting is key
The online shopping trend Black Friday
Black Friday 2020 could count 40% more transactions than in the previous year 2019. Also already 2019 had 60% more sales than in 2018. Transactions are increasing every year and it is nice to see that money is also spent during Covid-19.
Not to forget the offline market. It would be interesting to look at these numbers to see how Black Friday did there. Especially the regional as well as international comparison would be interesting as the lockdowns happened differently. One figure we know is that there were 25% fewer ATM transactions than in the previous year, which can be attributed to the lockdown and the recommendation to pay by card.
The German online shop Otto Versand, also increased sales by 35% and hired 200 new employees for customer service. Due to the large number of orders, Hermes also had to increase its staff and hire 1,000 employees and vehicles in order to cope with the flood of parcels.
Agenda | GANDT Fireside Chat Video #066
00:50 Snocks Black Friday Strategy
04:53 Snocks Facebook Ad Library
08:33 Percentage vs. fixed price discounts
13:18 Facebook Marketing Strategy 101
17:14 Black Friday Online Shopping Trend
24:50 Fun Fact - PS5 Sales