Your Guide to Pre-Holiday Advertising on Amazon

Tony Morales

November 8, 2021

In preparing for the holiday season it can be hard to know when to spend and when to save your advertising budget; when is it most competitive to spend, and when is the best opportunity for sales? To help you out, we’ve created the Holiday Advertising Series to walk you through each week of the holiday season and how to adjust your advertising strategy accordingly. From budgets to messaging, learn what to keep in mind this holiday season. To start off, we’ll hear from our Director of Advertising, Tony Morales:

To make sure we’re on the same page, I think it’s best to break down the holiday advertising season into four sections:

  1. The pre-holiday shopping phase (browsing phase)
  2. The shopping phase
  3. Cyber week
  4. The post-holiday drop-off

The pre-holiday shopping phase

The first phase begins at the start of the fourth quarter, right at the beginning of October, and lasts until about mid-November, think the 14th. This six-week period I refer to as the pre-holiday shopping phase. In this part of the holiday season, we typically see more browsers than buyers.

What happens during the pre-holiday shopping phase, from an advertising perspective, is high clicks and potentially increased traffic on your products, but not a lot of conversion. This can be discouraging since high visibility and low sales isn’t great for PPC budgets, but unfortunately we do see a huge increase in browsing this time of the year. A big reason for browsing without conversion is the anticipation of holiday deals; your audience is prepping for Black Friday/Cyber Monday and searching for what products they want to buy on holiday discounts. Think of the pre-holiday shopping phase as research for the shopping phase.

However, we may see some disruption in our browsing phase this year. With the rampant global supply chain issues that we keep hearing about in the news, I would expect more shoppers to begin their shopping earlier than usual for 2021. In a typical shopping season we could expect a standard period of browsing, but after the pandemic, and with the newly-found convenience of online shopping, we may see buying start sooner than expected. With this in mind, I have a few recommendations.

Advertising strategies for the pre-holiday shopping phase

Normally, I would say keep your PPC ads running business-as-usual. Don’t go crazy with bidding up or spending tons of money during this time, because your conversions will most likely not match your spend thanks to the browsing phase. I would recommend focusing the majority of your budget for this six-week pre-holiday shopping period on top-of-funnel search efforts. Focus on bringing awareness to your offering. Any type of programmatic display ad or video ad or continuous retargeting that you can do at this time is ideal. The goal for this is to plant seeds in shoppers’ minds that your product is a great option for the holiday.

If you have an influencer strategy, this is a good time to press hard on that. Unfortunately, with the recent IOS update giving users the option to opt out of retargeting, we have seen Facebook ad performance drop like a led balloon across all categories. Luckily, you can repurpose your social media spend towards influencers and Amazon DSP or some other equivalent programmatic advertising. An influencer strategy can also help build authority and consumer trust in your product as they figure out what to purchase for gifting.

In addition to focusing on top-of-funnel searches and building your awareness, you can look at opportunities to steal attention from your competitors. If you have a dominant competitor in the market, look at the metrics around keywords including their company name, product titles, or other branded searches to see if it makes sense to conquest those keywords. You don’t want to overspend during the pre-holiday shopping phase, but conquesting is an area that may make sense for your brand during the browsing period. Remember, this timeframe is about planting seeds for your target audience.

Other strategies for the pre-holiday shopping phase

This pre-shopping phase is also a good time to ensure your listings, image stack, bullet points, and pricing are ready for the holidays. As consumers begin their research they need to get helpful information as quickly as possible from your listing, if not they will continue researching until they find something they understand better. While you may not see conversion metrics going up, you should still focus on convincing shoppers your product is the one they want when they are ready to buy.

To recap, for this six-week pre-holiday shopping/browsing phase, do much more aggressive spending on top-of-funnel awareness strategies (DSP, Programmatic, Display ads, Influencer, email) to plant seeds, and continue with business as usual for your ad spend on the rest of your search advertising. If you think your business will be affected by supply chain issues, then you can ratchet up all of your efforts, however under normal circumstances that would be a mistake. I would also advise to work on getting ahead of holiday inventory needs for next year.

The shopping phase

The second phase for the holiday advertising season is the shopping phase. This will happen from mid-November through most of December (leading up to Christmas). During this phase it makes sense to increase budget toward bottom-of-funnel, conversion efforts and increase bids on PPC Campaigns. This will help shoppers who are looking for your product, or your category, find your offering during this competitive time. When intent to buy is high—like during the holiday shopping season—you want to do everything you can to show up at the top of the search.

The shopping phase is an important time to get serious. Starting with the week of November 15, each week going forward will be progressively bigger in terms of revenue generation, and this will last five consecutive weeks. The last week before Christmas will taper a little bit, but will still be a very strong week. It should land somewhere in the top six weeks for revenue for the year.

Cyber 5 weekend

Within the shopping phase of the fourth-quarter holiday season, there is a micro phase that spans about seven days: Cyber Weekend. Amazon has quoted that 41% of holiday shopping purchases will happen in the five-day period from Thanksgiving to Cyber Monday, but I like to tack on an extra day to the beginning and the end of the 5-day shopping event.

I focus on the Wednesday before Thanksgiving through the Tuesday after cyber-Monday to ensure I take full advantage of the flood of shoppers.

With such a huge percentage of revenue coming in this holiday week it’s really important to be aggressive and get your promotion and advertising strategy right. We will outline more strategies for the Black Friday/Cyber Monday holiday week in the next post of our Holiday Advertising series, coming next week.

Advertising into the new year

Historically Amazon does a little more than half of their total ad revenue in the fourth quarter, with the vast majority of that coming in the six-week period between mid-November and Christmas. We have seen total revenue for our business follow the same trajectory.

The last week of the year typically dips considerably as shoppers have wrapped up holiday festivities. However, for brands selling in categories such as beauty, supplements, health and fitness, fashion, and anything that would revolve around the “new year new you” concept, the last week of the year is a great time to begin advertising to shoppers, particularly those shoppers who received gift cards for the holidays or have disposable shopping funds thanks to returned holiday gifts.

Holiday advertising with Pattern

Interested in more expert strategy for advertising on marketplaces during the holidays? When you partner with Pattern you work with experienced advertisers who can tailor your advertising approach to your industry, category, and budget. Get in touch today.

Check out the rest our our Holiday Advertising Series:

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Sept 6, 2022

Global Ecommerce Weekly News: 6th September 2022

Get up to date with this week's ecommerce headlines from around the globe. --- Amazon News --- Amazon announces new inventory and distribution service, AWD Amazon has launched Amazon Warehousing and Distribution (AWD), providing inventory and distribution services to its sellers as a means of addressing current supply chain issues. AWD is now available for sellers using Fulfilment by Amazon (FBA), i.e. outsourcing their fulfilment to the platform. Amazon has plans to expand the service outside the platform in 2023. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/02/amazon-introduces-new-service-to-help-solve-supply-chain-challenges/) Amazon Web Services (AWS) launches in the UAE AWS, Amazon’s cloud-computing platform offering, has launched its second region in the Middle East and now provides its services in the UAE. The move will now allow anyone in the UAE who utilises cloud technologies to harness AWS’s advanced platforms and APIs. An estimated $11 billion USD is expected to be added to the UAE’s GDP thanks to the implementation, with an average of 6,000 external vendor jobs to be created annually. AWS is now available in 87 zones across 27 regions, with sights set on expanding further across Australia, Canada, India, Israel, New Zealand, Spain, and Switzerland. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/08/30/amazon-web-services-launches-region-in-uae/) --- Other Marketplace News --- Lazada to launch in Europe Alibaba-owned ecommerce platform Lazada is set to launch in Europe, marking a refreshed internationalisation push from the company. The move follows toughening economic conditions and performance in Southeast Asia, advancing the need to tap overseas markets. In Europe, Lazada will face tough competition from giants like Amazon and Zalando. Lazada’s exact entry strategy is to be confirmed and will be reliant on macroeconomic and market conditions, according to Lazada CEO James Dong. [Read more on DigitalCommerce360](https://www.digitalcommerce360.com/2022/09/01/alibabas-lazada-to-take-on-amazon-zalando-in-europe-push/) Chinese ecommerce giant Pinduoduo to launch cross-border platform in the United States Pinduoduo, a Chinese ecommerce giant rivalling Alibaba and JD, has announced it will be launching a new cross-border ecommerce platform. The marketplace is set to launch in the United States next month, as part of the company’s larger push into new markets. Pinduoduo found success in China thanks to its rock-bottom price offerings and harnessing of social commerce marketing, emulating strategies similar to fast-fashion giant Shein. [Read more on Yahoo Finance](https://uk.finance.yahoo.com/news/pinduoduo-launch-international-e-commerce-034129263.html) Alibaba launches its biggest B2B sales event, ‘Super September’ China ecommerce giant, Alibaba, has now launched its month-long B2B sales event ‘Super September’. The event provides 40 million buyers and 200,000 suppliers with the ability to connect on the platform, showcasing a ‘virtually unlimited’ number of products. The event hopes to foster new cross-border business relationships to tackle supply chain challenges currently faced by businesses. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/01/alibaba-launches-super-september-b2b-sales-event/) --- Other Ecommerce News --- Klarna’s losses quadruple in first half of 2022 BNPL provider, Klarna, has reported losses of $581 million USD for the first half of 2022. This figure is almost four times larger than a year earlier, where $129 million USD in losses were reported. The company attributes the losses to employee costs, technology investments, and rising credit losses. Klarna’s figure reporting comes amidst worsening economic conditions, fresh legal and regulatory scrutiny, and pressure from Big Tech competitors. [Read more on The Financial Times](https://www.ft.com/content/483451db-9221-4ca4-83a6-b4ddc6bfcfbb) [Read more on the Guardian](https://www.theguardian.com/business/2022/aug/31/klarna-losses-more-than-triple-as-consumer-spending-slows) One fifth of Snap employees to be laid off amidst poor financial performance Social media platform Snap (‘Snapchat’) has announced it will be laying off 20% of its employees and closing out a number of projects following a year of poor financial results.The move will see 1,200 employees globally lose their jobs, saving the company an estimated $500 million USD in costs. Snap is currently valued at $20 billion, an 84% decrease from its valuation of $130 billion last year. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/01/snap-to-lay-off-20-of-its-workforce-and-wind-down-a-number-of-projects/)
Aug 30, 2022

Global Ecommerce Weekly News: 30th August 2022

Get up to date with this week's ecommerce headlines from around the globe. --- Amazon News --- Amazon set to shut down Amazon Care Amazon is closing its telehealth service, Amazon Care, which launched in 2019 as a trial program for its headquartered employees. Later the service was rolled out nationwide for employees and other companies. The ecommerce giant has now made the decision to move away from the healthcare space, believing it was not the right long-term solution for its enterprise customers. [Read more on CNBC](https://www.cnbc.com/2022/08/24/amazon-is-shutting-down-amazon-care-telehealth-service.html) Peloton closes new deal to sell on Amazon Following a recent deal, Amazon customers will soon be able to buy Peloton fitness equipment on the marketplace, marking Peleton’s first move outside a direct-to-consumer model. According to Peloton’s CCO, there are already around half a million searches on Amazon for Peloton products every month, despite having no presence on the marketplace. Some key products include the original Peloton Bike, retailing for $1,445 and Peloton Guide for $295. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/08/24/peloton-strikes-deal-to-sell-fitness-equipment-on-amazon/) --- Other Marketplace News --- 60% of Malaysians are buying from local sellers on Shopee A recent survey of nearly 3,500 respondents found that nearly half of the shoppers prefer to purchase from local sellers due to shorter delivery times. Other shoppers decide to shop locally due to the quality of the products made in Malaysia and an interest in keeping the economy running. As a result, smaller local merchants have been able to grow their businesses, and shoppers benefit from shorter delivery times, products of high quality and supporting local businesses. [Read more on The Malaysian Reserve](https://themalaysianreserve.com/2022/08/25/around-60-malaysians-are-buying-from-local-sellers-on-shopee/) Flipkart’s social commerce platform Shopsy crosses 100 million users Flipkart launched a social commerce arm, Shopsy, in July of last year, which has now surpassed 100 million users, ahead of its target timeline being the end of 2022. This acquisition of new users has made Shopsy one of the largest platforms of its kind in the country, and is expected to onboard a further 100 million by the end of 2023. The platform is centred around boosting local entrepreneurship and powering ecommerce for consumers across tier 2+ regions where users face challenges around trust and navigation when shopping online. [Read more on Business Standard](https://www.business-standard.com/article/companies/flipkart-s-social-commerce-platform-shopsy-hits-100-million-users-1220828006851.html) Meta joins Amazon and Walmart in bid for Indian ecommerce market Amazon mentioned earlier in the year that it would be building a logistics division in-house through its purchase of a 51% stake in Ecom Express, an end-to-end logistics firm, to make ecommerce deliveries more efficient in the country. Walmart operates Flipkart in India and is set to continue its investment in the marketplace. In an effort to compete in the Indian ecommerce market, Meta has partnered with Indian ecommerce company, JioMart, to offer customers a grocery shopping platform within its WhatsApp chat feature. [Read more on Pymnts](https://www.pymnts.com/news/retail/2022/meta-joins-amazon-walmart-indian-ecommerce-market/) --- Other Ecommerce News --- Ecommerce in Spain worth €57.7 billion in 2021 Spanish ecommerce saw 11.7% growth compared to last year, largely attributed to cross-border sales. In the final quarter of 2021, ecommerce sales in Spain were at €16.9 billion euros, at least 60% of which came from cross-border sales. Transactions from foreign locations to Spain generated a turnover of €1.56 billion in Q4, a growth of 27.7% compared to Q4 a year before. [Read more on Ecommerce News](https://ecommercenews.eu/ecommerce-in-spain-was-worth-e57-7-billion-in-2021/)
Aug 23, 2022

Global Ecommerce Weekly News: 23rd August 2022

Get up to date with this week's ecommerce headlines from around the globe. --- Amazon News --- Amazon to add mental health support to primary-care service Amazon is set to move into mental health therapy with its primary-care division, following its recent acquisition deal of One Medical. The plan is to partner with virtual behavioural therapy service, Ginger, to offer its Amazon Care users with on-demand access to mental health services, licensed therapists and psychiatrists. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/08/11/amazon-plans-to-add-mental-health-support-to-primary-care-service/) GMB union calls for £15 an hour minimum pay at UK Amazon warehouses Amazon recently offered its warehouse workers a 3% pay rise, which in comparison to the June inflation rate of 9.4% left employees disappointed. Following this, hundreds of Amazon warehouse workers stopped work last week, protesting against the minimal pay increase, seeking a minimum of £15 an hour. Recent protests consisting of employee walkouts and sit-ins aim to get a better offer out of Amazon. [Read more on The Guardian](https://www.theguardian.com/technology/2022/aug/09/gmb-calls-for-15-an-hour-minimum-pay-at-amazon-warehouses-in-uk) Amazon third-party sellers have received their first-ever holiday fee hike Amazon’s third-party marketplaces account for close to half of the company’s online sales. The company introduced a 5% fuel and inflation charge to its third-party sellers earlier this year, and has now implemented another inflation increase charge. Commencing 14 October, any seller who uses Amazon’s fulfilment service is subject to the price hike, which is set to be an additional 35 cents per item for products sold in the US and Canada. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/08/17/amazon-third-party-sellers-have-received-their-first-ever-holiday-fee-hike/) Amazon puts a pause on UK grocery shop roll-out as the cost of living increases Amazon has slowed down on its UK roll-out of till-free Amazon Fresh grocery stores following disappointing sales and the rise in cost of living. Allegedly, the company is no longer looking for potential sites to expand and if more stores are opened, they will likely no longer use a till-free system, as consumers become more cautious about spending. [Read more on The Telegraph](https://www.telegraph.co.uk/business/2022/08/21/amazon-pauses-uk-grocery-shop-roll-out-following-disappointing/) --- Other Marketplace News --- Shopee overtakes Alibaba across international markets Shopee has surpassed Alibaba and taken the top spot for sales outside of China. Singapore-based marketplace saw a year-on-year increase of 51.4% at the end of Q2 of this year, while Alibaba saw a 3% drop during the same time period. This can be seen as a promising development for start-ups and their ability to compete with some of the largest ecommerce giants in the market. [Read more on Exchange Wire](https://www.exchangewire.com/blog/2022/08/18/shopee-surpasses-alibaba-in-international-sales-amazon-searches-for-entertainment-exec/) H&M reopens its official store to Alibaba’s Tmall ecommerce platform It has been nearly 18 months since Alibaba removed H&M from its Tmall platform, following H&M’s criticism of human rights abuses in Xinjiang. It is estimated that over a million people, predominantly minorities in the area, have been unlawfully detained in camps across the city. Brands including Nike, Adidas, Burberry and Converse were swept up in the controversy, however H&M was one of the first to be targeted for speaking out about the issue. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/08/16/hm-returns-to-alibabas-tmall-platform-16-months-after-xinjiang-controversy/) Klarna launches new feature allowing UK consumers to view full online order history Buy-now-pay-later company, Klarna, has launched a new feature on its shopping app, which allows UK consumers to view their full online order history, regardless of whether they purchased the product using Klarna. The feature also shows delivery tracking and aids consumers in managing their online purchases more conveniently. [Read more on The Industry](https://www.theindustry.fashion/klarna-launches-new-feature-allowing-uk-consumers-to-view-full-online-order-history/) --- Other Ecommerce News --- Online marketplaces responsible for £280 billion business turnover in the UK Nearly 900,000 UK businesses are currently selling on online marketplaces, generating an estimated £282 billion worth of sales each year. This figure represents 6% of the UK’s annual business turnover, highlighting the notable contribution that marketplaces make to the UK economy, along with the potential for further growth in this area. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/08/09/online-marketplaces-responsible-for-280-billion-business-turnover-in-uk/)