Over the past decade, social media has become a cornerstone of retail advertising and sales. With the holiday season fast approaching, many advertisers are focusing their strategies on popular platforms like Facebook and Instagram. While these platforms have proven effective for retailers, the rise in popularity of channels like TikTok, YouTube, and  Connected TV (CTV) makes it essential for brands to diversify their efforts. This is especially important during the high-impact, high-value holiday season, where reaching broader audiences across multiple channels can drive greater success.

The Current Landscape

Rising Costs and Increased Competition

For years, Meta’s CPMs (cost per thousand impressions) have steadily increased, driven by the platform’s effectiveness and heightened competition for ad space during peak seasons. This trend is expected to continue this holiday season, as retailers and eCommerce brands ramp up their ad spend to capitalize on this crucial shopping period. However, this year’s cost increase is projected to be even more significant, due to two major factors:

1. Retailer Preference for Social Media During Holidays: Retailers prioritize social media advertising during peak shopping periods due to Meta’s ability to drive conversions and offer real-time engagement with consumers. This heightened demand for ad inventory during the holidays pushes CPM costs higher.
2. 2024 Political Advertising Surge: Election cycles bring a surge in political advertising, significantly raising ad space costs across platforms. According to eMarketer, political ad spending on social platforms is expected to grow by 86.7% in 2024 compared to the 2020 election cycle. This influx of political ads creates additional competition for ad space, further driving up costs as brands vie to reach their target audiences during this critical time.

Source: WITHIN’s Marketing Pulse

Setting Expectations

Meta platforms remain powerful conversion drivers for brands, making it essential to allocate a significant portion of the holiday budget to these platforms. However, rising costs and increased competition for ad space, especially with the surge in political advertising, mean brands need to set realistic expectations for performance during this time of year.

As competition intensifies, return on ad spend (ROAS) may not be as high as in previous years. Brands maintaining the same year-over-year investment should anticipate weaker ROAS due to increased advertising costs. To maintain the same visibility and conversions as previous year, brands will need to consider increasing their investment. Recognizing and planning for these changes is key to properly setting expectations and strategically planning your advertising budget.

How to Adapt Your Brands Holiday Strategy

Diversifying advertising spend is not only a way to mitigate rising costs, but also a way to reach new and growing audiences. Despite their growing popularity, platforms like TikTok, YouTube, and Connected TV (CTV) are still underutilized, offering more competitive CPMs and CPCs compared to Meta.

TikTok: The platform has exploded in popularity, especially among younger audiences, and is quickly becoming a key driver of consumer behavior. However, ad inventory on TikTok is still less saturated than on Meta, which means CPMs are typically lower.

YouTube: As the world’s second-largest search engine, YouTube is an important platform for brands to consider. With lower CPMs compared to traditional TV and other digital platforms, YouTube can serve as a complementary channel that reaches consumers in a more engaging way.

Connected TV (CTV):  As more consumers shift to streaming services, CTV provides a cost-effective alternative to traditional and online advertising. It offers high-quality video content that complements social media advertising, often at a lower cost than mainstream platforms, making it an attractive choice for brands looking to expand their reach without significantly increasing spending.

• Pro Tip: Remember the importance of a strategic lifecycle remarketing plan! According to Salesforce, repeat buyers are expected to make up 40% of holiday purchases in 2024. To effectively target this important group, limit delivery to current customers in broad social media and CTV campaigns to prevent marketing overlap. Instead, engage them with dedicated campaigns using cost-effective methods like email and SMS. This focused approach not only optimizes spending but also enhances customer engagement and retention.

The Creative Challenge: Adapting for Each Platform’s Best Practices

One of the biggest pain points brands face when it comes to diversifying their advertising strategies is the need to create platform-specific content. This is compounded by the ever-increasing need for video content that platforms like TikTok, YouTube, and CTV rely on.

TikTok: TikTok users value authenticity and relatability over highly branded, produced content, which is why UGC (user-generated content) style videos tend to perform best on the platform. To succeed on TikTok, brands should focus on producing a high volume and variety of UGC assets. This includes using multiple hooks, working with different creators, showcasing testimonials, featuring before-and-after content, incorporating voiceovers, and including trending music on the platform. Creating variations of this content may seem time-intensive and costly, but UGC platforms like brkfst.io can quickly produce a high-volume of high-quality content at cost-effective prices.

YouTube: YouTube has traditionally been a platform where long-form content performs best, making it ideal for building awareness and consideration at the upper or mid stages of the marketing funnel. However, the introduction of YouTube Shorts — a format perfect for quick, impactful messaging that encourages immediate action — now positions YouTube as a powerful tool for driving immediate conversions. AI tools can efficiently create engaging Shorts from longer videos, allowing brands to cater to diverse viewer preferences and increase the chance of conversion.

• Pro Tip: From our testing at WITHIN, UGC content has consistently shown to be the most effective for Shorts across various industries This means that brands already creating vertical videos or UGC content for other platforms can easily repurpose and test it on YouTube Shorts.

CTV:  It’s no surprise that CTV has seen massive growth in 2024, yet brands are still hesitant to test it. The main concern we hear from brands is the lack of high-quality video creative, cost, and measurement typically needed for TV. However, unlike linear TV, CTV is highly measurable, and the creative doesn’t need to be a fully produced commercial.

• Pro Tip: For brands testing CTV, we recommend starting with a remarketing campaign using creative tailored to website visitors or past purchasers. After launching, measure the sales lift within that audience — essentially tracking how much of an increase in purchases can be attributed to those who saw your CTV ads.

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As retailers and eCommerce brands gear up for the holiday season, it’s essential to implement a diverse marketing strategy. While Meta platforms should remain central to holiday marketing efforts, integrating channels like TikTok, YouTube, and CTV can help balance rising costs and expand your brand’s reach to new audiences. Partnering with UGC platforms like brkfst.io or working with expert digital and creative teams allows brands to produce tailored content for each platform, ensuring they captivate and engage their audience during the highly competitive holiday season. 

WITHIN’s expert Digital Media and Creative Teams can help your brand stand out this holiday season with an omnichannel strategy and engaging content. Email us today to learn more.