With Summer in the rear view mirror, preparations for the upcoming holiday season should be in full swing. Here are insights to help you navigate and hopefully reap the rewards of these critical final months.
Unlike past years when we’ve offered a laundry list of strategies and recommendations on how to prepare, this year, we’re keeping it simple with one, powerful solution - the metaphorical silver bullet - Meta’s Advantage+ shopping campaigns.
It’s been ~2 years since the launch of Advantage+ shopping campaigns, where Meta clapped back from Apple’s iOS 14.5 update. Today, a majority of advertisers that heavily invest in Meta are adopting Advantage+ shopping campaigns as a portion of their account structure. At Kargo, our advertisers' adoption rate of Advantage+ media ranges between 10-85% of their media spend.
For a bird's-eye view of the holiday season, we pulled 2023 monthly performance data from a direct response sample of our clients, totaling just under $100M in media spend. Here’s what we found:
Advantage+ Comes At A Premium
Not shocking: CPM’s climbed rapidly in Oct., remain steady into Nov. and rapidly decline in Dec.
While Advantage+ shopping campaigns are typically in-line with general spend CPMs, last year we saw a +20% delta emerging in Q4, driving costs up significantly.
However...That Premium Juice Is Worth The Squeeze
Despite the higher CPMs, Advantage+ shopping campaigns were more effective in identifying those most likely to convert, making the surcharge well worth the price.
More people click on Advantage+ ads. It’s evident that the Advantage+ shopping campaigns auction for premium impressions serves those more likely to engage, as we witnessed a 50+% delta in LCTR
- Advantage+ shopping campaigns drives conversions. We typically see a 1 Day Click ROAS delta hover ~+30% compared to non-Advantage+ media, but in Q4 2023, that number increased to ~+55%.
Long story short, Advantage+ shopping campaigns does a better job of finding people who buy which will always be the more expensive audience to identify and reach.
How Can Kargo Commerce Support Your Holiday Efforts?
Kargo Commerce can amplify your Advantage+ shopping campaigns this holiday because we operate as an integrated creative and media automation tool. More specifically, our system scales personalized ads with Kargo Commerce templates. These templates remove manual work and provide customization opportunities without limits, going beyond simple price & logo overlays.
Additionally, our new default opt-in workflow for Advantage+ shopping campaigns allows advertisers to launch campaigns with greater speed and efficiency. In just two clicks, brands can launch their campaigns.
Lastly, we specialize in feed management and can onboard, merge and structure diverse data sources including product, location, price and more to power Advantage+ shopping campaigns.
The Moral of the Story?
We recommend incorporating Advantage+ shopping campaigns into your media strategy this holiday. With Kargo Commerce’s automation tools, improved efficiency, limitless customization, increased scalability and extensive feed management tools, your campaign performance will be even merrier.
