How should seasonal businesses manage their ad spend?
Some products have a seasonal appeal, and will sell much more during certain months than others. For example - a business that exclusively sells winter jackets is going to have decreased demand during the warmer spring & summer months, and increased demand during fall & winter.
We’re big proponents of scaling ad spend as much as possible, however the seasonal aspect has to be taken into consideration. There is simply no point in spending the same amount of ad-spend in slower months unless there is a unique strategy in place for how that ad-spend will be utilized.
So…what should a seasonal business do?
A seasonal business with an aggressive marketing plan may choose to keep spending consistently throughout the year, however if thats not the case:
Strategize by identifying its slowest 6 months, and its busiest 6 months
Create a plan for scaling ad spend up during busy months
Create a plan for:
a) scaling ad spend back for slow months (and never stop retargeting!)
b) re-allocating ad spend to other platforms that maintain better performance
c) adding new products that can be sold during the slow seasonIdentify how much you are willing to spend to acquire a sale during the slow season
Seasonal businesses should almost always set aside a portion of marketing budget for the slow season. What this looks like will vary - the key is having a plan ahead of time.