November expected to see record-breaking ad spend amid Black Friday preparations

As part of our 2023 Retail Week coverage, in association with Metrocentre, we see how ecommerce businesses across the UK are spending record amounts on advertising as they hope to make the most of Black Friday sales.

Juni’s data shows that ecommerce businesses had a remarkable 220 per cent increase in median spending on advertising in September, when compared to the same time last year.

Despite ongoing concerns about a stagnant economy hurting the industry, Black Friday remains a pivotal moment in the year, boosting sales and customer engagement. Reflecting this, the two weeks straddling the end of October and early November are typically the peak of ad spend, and this year is no different.

Ecommerce businesses on Juni’s platform have doubled down on ad spending, with a median average increase of 151 per cent and 100 per cent respectively from the numbers observed during these two weeks last year. This ad spend has focused on Meta and Google, with 85 per cent of total ad spend budgets shared between these platforms.

Notably, Google is challenging Meta’s reign as the ad platform of choice, which had a share of 52.8 per cent in October this year. Google’s share of ad spend rose from 22.7 per cent in October 2022 to 29.5 per cent in the same period this year.

Amazon has also made considerable progress, more than doubling its share of budget allocations since last year: up from 3.5 per cent to 8.4 per cent when comparing last September to this year.

Additionally, Juni’s quarterly spend reports indicate that the ecommerce sector has been preparing for the sales season much earlier this year, with record spending levels on inventory made in Q2 to prepare stock months in advance, followed by record ad spend in Q3 to support marketing and sales efforts.

The figures suggest that November will be a record-breaking month for ad spend by ecommerce businesses. Ad spend year-on-year growth in the UK via Juni’s platform is projected at 46 per cent, which would make it the best November on record.

Samir El-Sabini, CEO at Juni, commented: “Despite the economic climate, Black Friday remains a critical opportunity for sales and business growth for ecommerce businesses, and spending patterns reflect this sentiment.

“Their results around this period will be a real indicator of how well they have prepared by investing in stock and marketing. Time will tell if consumers are as willing to open their wallets as previous years, in this climate, many may be on the hunt for deals.”

This article is part of Bdaily’s 2023 Retail Week, in association with Metrocentre.

By Matthew Neville – Senior Correspondent, Bdaily

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