2022 Q4 Report Highlights
The global economy in 2022 faces unprecedented challenges including supply chain bottlenecks, high inflation, and the conflict in Ukraine. Here are the highlights of our analysis comparing key eBusiness metrics in 2022 to the previous year:
Year-over-Year % Change Q1-Q3 2022 vs Q1-Q3 2021
Advertising Costs (CPM) Trend
CPM was up 19% on average in the first 9 months of 2022 compared to the year before. Most of the CPM increase happened during the first half of the year, before the Fed accelerated its interest rate hike. In Q3, the CPM increase slowed but it maintained at about the same level as last year. We expect the CPM will increase again in Q4 due to holiday seasonality, following, if not above, the trend line from last year.
Website Visitors Trend
The number of users visiting websites was down 11% in the first 9 months of 2022 compared to the year before. However, it started to trend upward in August and September was the first month that the 2022 visitor number surpassed that of 2021, indicating increasing consumer activities as businesses pushed their holiday promotions earlier.
Conversion Events Trend
Conversion events were down 18% in the first 9 months of 2022 compared to the year before, and the trend has been consistent. While the visitor traffic increased in August and September, it hasn’t translated into more conversions in any noticeable way yet. We expect the conversion number to increase as we approach the peak of the holiday shopping season but this may be a sign businesses need to work harder to convert their visitors into customers.
Ideas to Consider
Rising advertising costs coupled with a decrease in consumer sentiment presents a bigger challenge for businesses in this holiday season compared to last year’s. Here are some ideas to help marketers further improve their campaign ROI.
- Diversify your advertising channels and optimize your channel mix. Different channels have different characteristics and cost structures. If you’re struggling to maintain your ROI while growing your reach, it’s a sign your current channel mix has reached its optimal point. Consider expanding into new advertising channels or new campaign types in your current channels.
- Adapt an integrated marketing strategy to your paid and owned channels. Especially on social media, it’s more effective to take a holistic approach to your paid and organic campaigns. Your advertising and email campaigns can also work together to generate as much as 2x conversions. Creating synergy across your paid and owned channels helps further boost your ROI.
In 2022, the general economic trends apply across most industries in our data, with the exception of the travel industry. Our data shows an increase of 94% on visitor numbers and 98% increase on conversion numbers in the first 9 months of 2022 compared to the prior year for the travel industry. After two years of travel restrictions at various degrees across the globe, the travel industry is booming this year, as travel restrictions eased and countries started to open their borders. In the US, some experts predict that the air travel cost during this holiday season will be among the most expensive on record.