Cyber Week Recap 2023

Cyber Week Recap 2023

With another action-packed Cyber Week behind us, let’s review what the pinnacle of shopping had in store for both eCommerce and traditional retailers. From purchasing trends impacting buying behavior to unbeatable deals and month-long sales, each year the Thanksgiving through Cyber Monday spectacle incrementally evolves and morphs, while marketers try their hand at appealing to the needs of consumers alongside economic drivers and buying backstops.

What We Saw

Known in the industry as Cyber Week or Turkey 5, the Thanksgiving through Cyber Monday shopping period beat Adobe forecasting expectations and set a new record with revenue up 7.3% YoY at $38 billion in total consumer spending. This puts 2023 gains in line closer to 2021’s numbers (source).

General Overview:

Better Discounts Incentivize Buying

Better Discounts Incentivize Buying

Shoppers held out for deals with reports indicating a 30% discount needed to incentivize early buying.

Inventory Refinement

Inventory Refinement

Retailers course-corrected to more focused inventory this buying season, following last year’s market glut.

Prices Jumps

Prices Jumps

Salesforce reported that SKUs per catalog were down 3% while pricing was up 4% YoY

Leveraging Buy Now, Pay Later

Leveraging Buy Now, Pay Later

Adobe showed a record high buy now pay later (BNPL) up 42.5% from 940 million in 2022.

Drop in Foot Traffic

Drop in Foot Traffic

National Retail Federation reported modest growth up 1.9% with Google reporting a 3.4% YoY decline in foot traffic.

International Purchasing

International Purchasing

Shopify analysis indicates 15% of SMB shipments on Black Friday crossed international borders with the United States, United Kingdom, and Canada as the top recipients.

Industry Insights

Industry wide, revenue was up on each individual day of the Turkey 5 with an overall increase of 7.3%:

2023 YOY Turkey5 Revenue Increase

9% 6% 3% 0%
Thanksgiving Black Friday Cyber Monday Turkey5

LP Specific Cyber Week Data

Our team outperformed industry benchmarks with LP clients seeing an average 7.7x ROAS over the Turkey 5. Increasing AOVs offset rising CPCs for most clients and Meta showed strong YoY growth, with increased ad loads, and cheaper CPMs.

PPC

Search

Revenue growth increased by 29% YoY

Conversion Rates increased by 19% YoY

$45.11 million generated in client sales revenue

Paid Social

Social

Revenue growth increased by 36.3% YoY

Conversions increased by 55.5% YoY

$20.19 million in total client revenue generated

9.3 aggregate ROAS across all accounts

Email

Email

35% of client total store revenue attributed to email marketing

$2.68 average revenue per campaign recipient

$4.7 million generated in Turkey 5 client revenue.

Amazon

Amazon

23% increase in Average Order Value YoY

10% increase in Conversion Rate YoY

10% decrease in ACOS YoY

$2.3M in client revenue generated

The Wrap Up

The playing field between buyers and sellers is continuing to even out and while Cyber Week remains the predominant force in the shopping world, consumers continue to evolve. Early offers might have been able to grab buyers, but clickbait-y deals did not hold. While retailers have wisened up and closed the supply-chain gap, we still advise holding budgets until their final ship dates, and then resuming aggressive spending on the day after Christmas through the first week of January. Nevertheless, once the shopping season has concluded, we recommend a full account-audit to unpack the results and opportunities for stronger insights and benchmarks to grow from.

Matt Bowen

Matt Bowen, Associate Director of Enterprise Client Services & Strategy

Matt Bowen is the Associate Director of Enterprise Client Services & Strategy at Logical Position, an Inc. 500 digital agency supporting 5000+ clients across North America. LP is proud to be the reigning recipient of Google’s Lead Generation Premier Partner of the Year award! The award-winning agency offers full-service PPC management, SEO, Paid Social, Amazon and Creative Services for businesses large and small. As a Google Premier Partner, Microsoft Elite Partner & Meta Business Partner LP is in the top 1% of ad spend managed across platforms.

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