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The sale season advantage – Why brands that advertise on e-commerce do better during sale season

11 May 2018

Be it Big Billion Days, End of Reason Sale or No Kidding Days, over the years Flipkart’s sale season has become an awaited period of excitement and enthusiasm for online shoppers across the country. Users look forward to special sale days so they can tick their long shopping wish lists and leverage from a myriad of special offers and deals. This poses a lucrative opportunity for brands to benefit from voluminous increase in site traffic and work towards improving their overall visibility, reach and engagement, which could lead to a noticeable improvement in product sales.

To put things into perspective, Flipkart’s Big Billion Days (BBD) 2017, spread across 5 days, alone witnessed sales equaling 70 percent of the entire online e-commerce market in the country for the same duration. As a property, BBD Flipkart 2017 recorded a Y-O-Y growth rate of 100 percent in both sales and the number of shoppers who transacted online. Similarly, the staggering numbers from the Big Shopping Day (BSD) sale 2017 point towards the limitless possibilities of advertising on e-commerce portals such as Flipkart. BSD 2017 recorded the highest ever smartphone sales along with other category such as ‘branded fashion’ and laptop sales growing to the tune of 10X and 30X, respectively.

An ever increasing consumption of Flipkart’s innovative budget-friendly constructs such as ‘No Cost EMI’, ‘Buyback Guarantee’, ‘Buy Now Pay Later’ and ‘Product Exchange’ speaks volumes about the increasing number of shoppers and the trust they have shown while transacting on the homegrown e-commerce portal.

With data-driven ad strategy and contextual placement to guide traffic along the customer’s purchase cycle, marketers have an added advantage to run ads during sale season. Here’s why:

1. The increase in overall indicators in the consumer shopping funnel:

The Consumer Shopping Funnel measurement is a unique metric used by Flipkart to determine return on advertising spend (ROAS) by tracking awareness, consideration and purchase of the brand’s products using different signals. Economising on rise in traffic during sale helps brands improve their ability to guide users along the consumer funnel, eventually improving the overall numbers and increasing their baseline in the post-sale period.

Not only does advertising during the sales days help the brands witness a pronounced engagement and reach among its audience owing to the overall push the brands receive, but it also makes certain its baseline numbers witness a distinguishable advancement during days after the sale.           

2. All categories can benefit:

Advertising on sale days provides lucrative opportunities for all categories of products. Categories such as mobile, electronics, whitegoods and appliances, FMCG, Telcos, BFSI and automobile have adopted the strategy of advertising during sale days at the fastest rate. Furthermore, other categories are adopting e-commerce advertising at a rapid rate. Categories like furniture, grocery and lifestyle are most likely to see tremendous growth in the near future.

This rapid adoption is largely due to the following factors:

  •         Shortest journey to purchase
  •         Ability to target consumers not just at the top of the funnel, but right at the bottom
  •         End-to-end attribution
  •         Better Return On Advertising Spend (ROAS).

The numbers speak:

  • Technology giant Samsung mobiles advertised during sale periods and achieved 10 million page clicks, 6x conversion rate and 1.2x sales target.
  • With advertisements during Big Billion Days, dry cell battery brand Eveready achieved an impressive 80% increase in total units sold.
  • Men’s footwear brand Red Chief saw a 3x spike in sales by advertising during End of Season Sale along with pricing intervention.

Brands across a wide array of categories such as fashion, lifestyle, technology, consumer durables, etc. can thus benefit from advertising during sales.

3. Making the best use of marketing budgets:

In the light of the above, it is evident why marketing during the sale days is so important especially for brands that are unable to market consistently throughout the year or those with relatively low marketing budgets. Due to the surge in traffic, these days are a unique opportunity for such brands to reach a wider audience network and eventually push them along the sales funnel.

Advertising during sale periods is a great way to improve overall reach and visibility by giving a concentrated push during specific times of the year. Flipkart’s advertising algorithm backed by data points and powerful insights, allows the marketer to undertake tailored targeting and superior visibility for better results.

With intent based audience targeting, users are profiled on the basis of their purchasing behaviour and browsing pattern. Rich data is used to set specific targeting parameters and ensure that marketers are able to review exactly who they are aiming to reach out to and accordingly chalk out a plan to target more effectively. They have access to a live dashboard that gives them the power to track campaign performance in real time and study results in-depth. This dashboard provides invaluable information about customer preferences.

To conclude, Flipkart Ads’ advanced tools and superior proficiency of intent based segmentation coupled with timing of sales days drives more users from awareness to consideration and eventually purchase. Thus, e-commerce advertising during sales days provides the three-fold benefit:

  • A wider audience universe through increased site traffic
  • Exponentially higher eyeballs
  • Increased overall jump in the baseline metrics of a brand’s Awareness, Consideration and Purchase levels in the post sale period and subsequent rise (ROAS).