Promotion analysis is the process of evaluating the effectiveness of promotional campaigns and activities. This involves analyzing data related to the promotion, such as the reach, engagement, and conversion rates, to understand how well the promotion is performing and whether it is meeting the desired goals.
There are several key components to consider when conducting a promotion analysis. These include the target audience, the message and positioning of the promotion, the channels used to deliver the promotion, and the resources invested in the promotion.
Objectives of Promotion Analysis
To begin a promotion analysis, it is important to first establish the objectives of the promotion. This may include increasing brand awareness, driving sales, or generating leads. Once the objectives are clear, it is then possible to define the target audience and develop a promotional strategy that is tailored to their needs and interests.
Next, it is important to carefully plan and execute the promotion, including choosing the right channels and allocating resources effectively. This may involve leveraging a combination of traditional and digital channels, such as social media, email marketing, and advertising.
Once the promotion is underway, it is crucial to continuously track and measure its performance. This may involve collecting data on metrics such as reach, engagement, and conversion rates. This data can then be analyzed to understand how well the promotion is performing and whether it is meeting the desired objectives.
Overall, promotion analysis is a critical process that helps organizations understand the effectiveness of their promotional campaigns and activities, and make informed decisions about future promotions. By carefully planning and executing promotions, and continuously tracking and measuring their performance, businesses can ensure that their promotional efforts are delivering the desired results.
Promotion Analysis of Holiday Season Advertising
The holiday season is upon us. Compared to 2021, National Retail Federation has forecasted retail sales growth to be between 6% and 8% this year. Despite recent inflation, sales are predicted to be between $942.6 billion and $960.4 billion.
With rising inflation and recession fears, we compared how retailers provided discounts, deals, and promotions during this holiday season with data from search monitoring technology. Here are our three findings –
- Price discounts offered this year vs last two are very similar
- Apparel and Accessories had the higher discounts this year
- Inflation may have put pressure on discounts
Comparison of 2020, 2021 and 2022
To begin with, we compared how discounts, sales, and promotions differed over the years during the first few weeks of November (Nov 1st – Nov 20th) leading to Black Friday and Cyber Monday.
According to our data, we found fewer product listings with sales and promotions in 2022 compared to the previous two years. Despite fewer product listings with sales and promotions this year, the average price discounts offered is very similar to that offered in 2020 and 2021.
Deep Dive into 2022
Heading into Black Friday and Cyber Monday, we analyzed categories with highest discounts and popularity by discount types.
Per our data, we found a handful of deals offered across categories with average discounts of 10%. While categories such as Wine & Liquor had a modest discount of 30%, others such as Apparel & Accessories had massive discounts as high as 80%
Diving deeper into promotions, different types of promotions and sales were popular across categories. As seen in the graph below, the most popular promotions in Apparel and Accessories, Electronics, and Furniture categories were promotions like “SAVE $$”. And deals like “X $$ Off” were extremely popular in the Wine & Liquor category. In the Automotive category, promotions in the range of 11%-20% were common.
How does promotion analysis helps brands?
Promotion analysis is a valuable tool for brands as it helps them understand the effectiveness of their promotional campaigns and activities. By analyzing data related to the promotion, brands can gain insights into how well the promotion is performing and whether it is meeting the desired goals.
There are several key benefits of conducting a promotion analysis for brands. These include:
- Improved decision making: By analyzing data on the performance of promotional campaigns, brands can make more informed decisions about future promotions. This may involve identifying what is working well and what may need to be adjusted.
- Increased efficiency: By understanding which promotions are more effective, brands can allocate their resources more efficiently and focus on the most successful campaigns. This can help to save time and money.
- Enhanced customer engagement: By analyzing data on customer engagement with promotions, brands can better understand what resonates with their target audience and tailor their promotions accordingly. This can lead to stronger customer relationships and increased loyalty.
- Increased sales and revenue: By analyzing data on conversion rates and sales generated by promotions, brands can understand the financial impact of their promotional efforts and make decisions that drive business growth.
Overall, promotion analysis helps brands to better understand their customers and make informed decisions about their promotional campaigns. By continuously tracking and measuring the performance of promotions, brands can optimize their efforts to drive business growth and achieve their desired objectives.
Conclusion
Looking at these trends, we concluded that, it is extremely difficult to forecast consumer behavior from retailers’ and brands’ standpoint. However, potentially due to inflationary pressures, retailers and brands may have shied away from providing big sales and discounts so far this year.
With that being said – this could change after Black Friday and Cyber Monday as retailers try to decrease their inventory. We are closely monitoring sales and promotions during these events to provide the uptodate promotional insights for the upcoming holiday season.
