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Maximizing Your Profit with Google Ads During the Holiday Season

The holiday season is one of the most important periods for businesses, and online advertising plays a critical role in driving revenue and profits during this time.

Google Ads is one of the most effective platforms to advertise during the holiday season, but it can also be challenging to manage bids and budgets effectively, especially during the peak buying moments.

In this newsletter, we will show you how to maximize growth and efficiency by carefully managing your bid strategies and leveraging Seasonality Bid Adjustments to optimize your Google Ads campaigns.

Mismanaging your bid strategies can result in huge overspend and lower return on ad spend. Google’s Smart Bidding algorithm works great and uses historical data to predict future conversions.

However, it cannot adapt well to sudden conversion rate changes of more than 30%, and most businesses will have a bigger conversion rate uplift than 30% during Black Friday.

Smart Bidding adapts to the conversion rate uplift AFTER the peak buying moments, which can cause massive overspend the days after the peak, resulting in lower profits. Therefore, managing your bid strategies effectively is crucial to maximize revenue and profit during the holiday season.

In order to maximize revenue and profit between Black Friday and Christmas, there are five phases you need to go through: the ramp-up, the first peak, the first danger zone, the second peak, and the second danger zone.

Each phase requires a different strategy, and it is essential to have a clear plan for each phase to maximize the performance of your Google Ads campaigns.

During the ramp-up period, you need to start spending more to acquire as many customers as possible, but it is essential to be patient as most people wait until Black Friday to make a purchase.

To manage your campaigns during the ramp-up period, be clear on your targets and use the Performance Planner if needed to find your sweet spot ROAS.

If performance and budgets allow it, slightly lower your ROAS as you get closer to Black Friday to push harder. However, it is crucial to use as much historical data as possible and use the Performance Planner when in doubt. After the ramp-up period, it’s time to maximize revenue during the first peak.

The first peak usually lasts from Black Friday until Cyber Monday and is one of the absolute peak buying moments. To maximize revenue during the first peak, we recommend using Seasonality Bid Adjustments (SBAs).

SBAs are advanced bid adjustments that you can use to inform Google’s Smart Bidding algorithm that you expect an uplift of your conversion rate during a specific period.

The algorithm will use this information to push harder during that time range, resulting in increased spend, clicks, and CPCs. You can calculate your expected conversion rate uplift by analyzing last year’s conversion rate trends.

The danger zones are the periods AFTER the peaks when conversion rates are likely to drop, and overspending is possible. The danger zone is essentially an inverted peak, and it is crucial to be careful during this period to avoid overspending.

To manage your campaigns during the danger zone, monitor your campaigns carefully and adjust your bids and budgets accordingly to prevent overspend.

In conclusion, managing your bid strategies and leveraging Seasonality Bid Adjustments is crucial to maximize your profit with Google Ads during the holiday season.

By carefully managing your campaigns during each phase of the holiday season and adjusting your bids and budgets accordingly, you can drive revenue and profits while avoiding overspend and lower return on ad spend. Remember to analyze historical data, use the Performance Planner, and monitor your

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