Advanced Strategies for Smarter Bidding, Budgets & Audiences

The holiday season is here, and competition among advertisers is high. This year, shoppers start their research much earlier, often in October. They use AI chats and bots to compare products and learn about deals. Insights from Microsoft indicate that many purchases in November and December come from clicks made weeks before.

Understanding Shopping Behavior

The way shoppers buy is changing. More people begin shopping early, but they also make decisions quickly as the holiday gets closer. Advertisers must adapt their Pay-Per-Click (PPC) strategies to reach customers earlier and be ready for quick purchases.

Key Insight: Shoppers are starting their holiday shopping earlier and making decisions faster when urgency hits.

Bidding: Winning the Ad Auction

Embrace Cost, Not Just Revenue

During the holiday season, the cost-per-click (CPC) rises because more advertisers are competing for the same space. It’s essential to focus on a good return on ad spend (ROAS) instead of just avoiding high CPCs. Data shows that CPCs peak during special sales like Black Friday and Cyber Monday.

Tip: Set smart bids based on profit, not just sales. Use seasonality bid adjustments so your campaigns can react to changes in shopper behavior.

Train the Automation with Guardrails

Automation can help, but it’s not perfect. It’s essential to set limits and monitor performance. For example, a big retailer using automation faced a problem when conversion data suddenly dropped. Alerts helped catch this issue, preventing drastic bid cuts during the busy shopping period.

Key Insight: Automation changes the type of risks you manage. Adding guardrails helps prevent mistakes during peak times.

Don’t Waste Budget on Out-of-Stock Items

Shoppers expect items to be available quickly. Using automated checks to pause ads for out-of-stock products is crucial. Adjust bids based on profit margins to reach your goals effectively.

Tip: Ensure ad titles and attributes are clear and relevant to improve visibility and win more impressions.

Budgeting: Stay Flexible

Activate Campaigns and Control Budgets

Instead of pausing campaigns, keep them active and use budget adjustments. Pausing can risk losing approval for new ads, which is especially critical before major shopping days.

Adjust Daily Budgets Dynamically

In busy holiday periods, static budgets can be harmful. Using dynamic pacing helps adjust spending throughout the day based on real-time performance data.

Tip: Monitor budget usage closely on key days like Black Friday to ensure campaigns aren’t overspending or underspending.

Targeting: Use Audience Data Wisely

Leverage First-Party Data

Using data from your customers and business sales can guide your advertising decisions. This includes understanding your pricing and profit margins.

Key Insight: First-party data isn’t just about who your customers are; it’s about how your business operates. Use this data to adjust your ad strategy effectively.

Explore Remarketing Options

Microsoft offers unique remarketing options to target users who saw your ads but didn’t click. This is an excellent way to reach potential buyers at a lower cost.

Creative: Stand Out in the Crowd

Focus on Click-Through Rate (CTR)

In competitive ad auctions, the click-through rate is more important than fancy wording. Keep ads up-to-date with current promotions and clear messaging.

Tip: Use multiple headline options in responsive search ads to optimize performance.

Keep Creative Fresh

Shoppers get tired of seeing the same ads. Update your advertising materials regularly to keep them engaged and interested.

Tip: Plan and schedule creative updates in advance to ensure everything is ready for busy shopping days.

Competitive Insights

Monitor Competition

Using tools like Google’s Auction Insights can help you track changes in competitor behavior. This allows you to respond quickly to shifts in the marketplace.

Key Insight: Keep an eye on your competitors to avoid being caught off guard during the holiday rush.

Post-Holiday Strategy: Retain Buyers

Nurture Holiday Customers

The holiday season brings many new customers who can be valuable in the long term. Use data to separate holiday shoppers from regular customers and run campaigns to retain them.

Key Insight: Focus on turning holiday buyers into loyal customers in January, impacting future profits.

Final Thoughts

Holiday PPC is challenging but rewarding. Understand the dynamics of CPC, budgets, audiences, and creative messages to thrive. Prepare early, adjust strategies carefully, and set up guardrails to protect your campaigns.

Quick Checklist

• Expect higher CPCs in Q4-focus on profit, not just cheap clicks.
• Apply seasonality adjustments and guardrails to your bidding.
• Treat budgets flexibly and adjust as needed.
• Utilize first-party data for better targeting.
• Create compelling and fresh ad content.
• Monitor competitors and consumer behavior closely.

By following these strategies, you’ll be better equipped to navigate the holiday season successfully and drive profitable results for your campaigns.