As veterans in trading during peak for retailers, we know how this period can make or break retailers. With up to 40% of a retailer’s sales typically driven through October and December alone, a poor trading period has resulted in many retail casualties in the first quarter of the next calendar year, especially over the last few years. Planning for a successful peak, along with having a reactive approach to competitor activity within a busy trading period, is essential when navigating through a challenging climate.
How CSS helped retailers in 2018
This time last year, one of the biggest initiatives for retailers to build into their peak plan was to ensure they were working with a CSS partner, such as Productcaster. Not only did retailers benefit from the partner incentive, with 5% of media spend being given back in the form of an ad credit, they also saved up to 20% on the price they pay for each click from Google Shopping Ads.
The initiative was launched and adopted at a perfect time for retailers. The success of Google Shopping, being one of the best performing sales channels for retailers, has come at a cost. Over the years an increase in costs to advertise in Google Shopping has had an impact on a retailer’s ROI. Data from our clients has shown CPCs increasing year on year from anywhere between 5% and 15%, dependent on vertical. This has been driven by more aggressive bidding by established players in the market, coupled with retailers who do not always operate an ‘always on’ strategy when launching campaigns.
The commercial opportunity
For peak 2019, we will be saving our clients a staggering £13.9m in costs, equating to an average of £54.4k per retailer who is currently live with Productcaster. Quite simply, it’s a commercial no brainer for retailers to launch with a CSS partner like Productcaster before peak demand starts to increase. As seen in the previous year, the rewards can prove instrumental.
It’s not too late to benefit
Our research has identified that there are still many brands who still have their ads ran through the Google Shopping CSS partner. Although the benefit of the ad credit has long gone, brands can still save the up to 20% off their CPC’s, enabling improved ROI or increased visibility and revenue for the same costs. And the good news continues to get better, as you can be live and improving your performance within a week.
Find out how Productcaster CSS can work for your business and understand the benefits you could be accessing ahead of peak.