Strike Overview
- The Q4 2024 holiday ad trends see an upward surge this year, reaching an estimated $271.58 billion—a 9.5% increase from 2023—highlighting a significant opportunity for advertisers.
- Meta’s platforms, especially Facebook and Instagram, are experiencing robust growth with a 20% year-over-year increase in advertising spend, positioning them to potentially surpass global linear TV ad spending by 2025.
- The transition from Q4 to Q5 promises to be an exciting period as advertisers traverse holiday ad trends, particularly with the U.S. presidential election influencing the market.
- Have no fear—your Strike Social Holiday Guide for 2024 is here to help you maintain a strong advertising presence while keeping ad costs under control.
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Planning Your Q4 2024 Facebook & Instagram Holiday Ads
As you prepare for the busiest shopping season of the year, Meta is gearing up to meet the surge in holiday ad campaigns across Facebook and Instagram. The Q4 holidays — Thanksgiving, Cyber Five, Christmas, and New Year’s — represent the most critical window for capturing audience attention and driving performance.
With ad spending peaking during this period, competition in the auction is becoming fierce, and the stakes are high. To maximize your campaign outcomes while managing costs, advertisers must stay ahead of the trends shaping consumer behavior, creative strategies, and targeting tactics. Here’s how to strategically plan your Facebook and Instagram holiday ad campaigns towards the end of the year.
Q4 2024 Holiday Ad Trends Advertisers Should Watch Out For
Before the celebration continues, let’s take a sneak peek at what to expect this year and how it’s different from previous years to fully prepare you for your holiday campaigns.
Key Peak Advertising Periods in Q4 2024
By anticipating shifts in ad spend and key peak periods, you can optimize your strategy and control costs while driving results for your Q4 2024 holiday ad campaigns:
As more advertisers vie for auction space during the Q4 holidays, we can certainly see spikes in ad spending during this time. Historically, Q4 sees the highest ad spending, particularly on Facebook and Instagram (Meta), with Google following a similar trend. TikTok, on the other hand, tends to have a more unpredictable and sporadic pattern. This heightened competition across industries inevitably drives up Facebook and Instagram ad costs. We’ll explore this further as we go along.
Online Shopping and Spending Trends
Adobe forecasts that U.S. online sales will reach $240.8 billion from November 1 to December 31, up from $221.8 billion last year. In addition, Mastercard’s Spending Pulse data indicates a projected 7.1% growth in retail sales during this holiday shopping season compared to 2023. The rise in consumer spending will likely kick off early, with shopping ramping up as early as Halloween and peaking through Christmas, driven by big-ticket purchases during the gift-giving season.
Further, Numerator’s research shows that many Christmas shoppers are starting as early as three months before the holidays. For advertisers, this means awareness campaigns need to launch well before November to capture early interest and effectively guide potential buyers down the funnel in time for peak holiday ad campaigns.
Meta’s Holiday Ad Trends for Q4 to Q5
Data from Meta’s campaigns affirm this, as 41% of consumers continue making purchases from holiday ads well beyond the peak shopping season. Last year, CPM-focused Facebook and Instagram ads peaked around Thanksgiving, while CPA-focused campaigns were more cost-efficient during the same period.
In Q4 2023, conversion campaigns saw a 20% year-over-year increase in performance and a 3.3x return on ad spend (ROAS) when using Meta Advantage+. Meta is heavily promoting Advantage+ to help advertisers streamline the process of diversifying ads and placements, ultimately improving campaign returns.
This approach pays off during the holiday season, as consumers actively search for gifts through Christmas campaigns on Meta, creating a sizable audience that helps drive more efficient ad costs.
Download our Facebook ROAS Case Study
Discover how Strike Social achieved 66% more impressions than guaranteed and a 28x Facebook ROAS through precise execution and real-time campaign management for a financial services client.
Insights for Effective Holiday Advertising Strategy on Facebook & Instagram
Now that you have a clear view of the holiday ad trends and consumer behavior for Q4 and Q5 2024, it’s time to review the actionable strategies that will drive results and deliver outstanding performance for your Facebook and Instagram holiday advertising campaigns.
Start Your Holiday Ad Campaigns Earlier
With fewer shopping days between Black Friday and Christmas in 2024, early campaign launches will allow for better positioning. October marks the start of the buildup, especially with the final weeks leading up to the U.S. presidential elections, where 79% of 2024 political ad spending is pouring on key battleground states. With political ads wanting to reach as many audiences as possible, this creates fierce competition for audience attention, making it harder for awareness campaigns to break through compared to previous holiday seasons.
Concurring with Meta’s holiday ad trends, our Facebook benchmark report confirms that CPMs will rise during peak Q4 periods, especially around Thanksgiving, Black Friday, and Christmas promotions, as advertisers optimize to reach more markets. Average CPM for Q4 2024 is expected to increase, but campaigns focusing on engagement may benefit from higher engagement rates, particularly with the growth of new ad formats like Reels, which saw a 61% increase in 2023 compared to 2022. Thus, if you want to get a headstart on the lower CPM levels, an early start to your full holiday advertising campaign is necessary.
Further Reading
How Facebook Engagement Ad Formats Win Holiday Advertising
Engagement ads on Facebook and Instagram allow brands to build genuine connections that can later convert into sales. As competition rises and holiday shopping behaviors shift, focusing on engagement helps brands reach Meta’s vast audience while maximizing campaign efficiency for scalable results.
More Aggressive Holiday Advertising for Both B2B and B2C
The competition for ad space for Q4 2024 holiday ad campaigns is not limited to retail brands. Both B2B and B2C advertisers are aggressively vying for inventory, particularly on Meta platforms and Connected TV, as the holiday season ramps up with key events like Cyber Five and New Year’s advertising.
According to NRF’s 2023 Thanksgiving holiday weekend data, a record 200.4 million shoppers were active during the Cyber Five period, with 44% shopping online. Black Friday and Cyber Monday led online purchases, solidifying these events as significant revenue drivers for B2C brands while increasing competition with B2B brands vying for the same ad inventory.
For B2B companies, Q4 presents an ideal opportunity to reach decision-makers actively searching for advanced solutions for their businesses. It’s the perfect time to adopt a bold, action-oriented strategy, focusing on campaigns that drive clicks and conversions. With 76% of B2B buyers preferring to speak with someone before acquiring new services, Q4 is when many finalize their decisions on renewing or switching to new products or services.
Meta’s holiday playbook data supports this holiday advertising strategy, showing that CPA levels remain relatively stable throughout Q4 and Q5, compared to fluctuating CPM and CVR rates. Additionally, our data indicates that Facebook traffic campaigns targeting link clicks could see a 23% increase toward Q4, based on 2023 trends. Encouragingly, link-click engagement rates have been on the rise in 2023 compared to 2022, signaling a positive trend for engagement-driven campaigns.
Lead Customers from Top-to-Bottom Funnel Holiday Campaigns
By Q4, your awareness holiday ad campaigns from earlier in the year—starting as early as Halloween—should have built enough momentum to drive audiences into your lower-funnel holiday campaigns. While awareness ads are crucial, by this point in the holiday season, your focus should shift toward consideration and conversion campaigns to capitalize on the peak of the 2024 holiday shopping season.
Not only are lower funnel campaigns more cost-effective, but we’re also seeing high engagement rates, especially in Facebook advertising campaigns focusing on post engagement, clicks, and link clicks, aligned with Q4 holiday trends. Reels are particularly powerful, with short-form video content on Instagram reaching up to 30% of users, reflecting its growing dominance across Meta’s advertising network.
According to Adobe Analytics, mobile devices are expected to drive 53% of online sales during the 2024 holiday season. Therefore, it is crucial to focus on mobile-first conversion strategies to achieve your campaign goals.
Further Reading
Improving Facebook ROAS with Real-time Optimizations
Various factors can contribute to Facebook ROAS underperformance, from basic problems like inaccurate Meta Pixel tracking to more intricate issues tied to campaign management. Partnering with an advertising agency can provide the specialized knowledge and strategies to boost your Facebook ad ROAS. See the critical areas where an expert agency can make a difference in optimizing your campaigns and driving better results.
Diverse Creative Formats to Keep Holiday Ads Fresh
As competition heats up during the holiday season, brands often find their ads competing for the same audience’s attention. When users encounter the same ad multiple times, their engagement tends to wane, leading to missed opportunities.
When running top-to-bottom funnel holiday ad campaigns, Facebook and Instagram users can quickly become fatigued by seeing the same creative, sometimes after just two impressions. This leads to users scrolling past or swiping away from your holiday ads.
Incorporate a variety of creative formats in your strategy to avoid ad fatigue and ensure your Black Friday and Christmas advertising campaigns remain effective. Facebook and Instagram offer dynamic options such as Reels, carousels, and videos that can significantly boost engagement and keep your brand fresh in consumers’ minds.
• Pro tip: Adhere to the Facebook and Instagram ad specs so your ads fit seamlessly within users’ screens.
Explore how to optimize your placements using manual selection in Meta Ads Manager to find the formats that best align with your brand messaging:
Shine Bright on Shoppers’ Lists with Twinkling Facebook and Instagram Holiday Campaigns
“It’s the most wonderful time of the year” – as it should be for both consumers and Meta advertisers alike. Indeed, the Q4 to Q5 periods can be a balancing act, where the need to scale budgets must align with the goal of achieving an impressive return on ad spend.
With Strike Social’s SWAS (software with a service) AdTech expertise, our aim is to deliver better results for you at lower costs for savings. Our proprietary tool, Campaign Lab, is designed to keep a close eye on your ads, ensuring that the full process from setup to campaign management is streamlined and optimized before your holiday campaigns even launch.
Learning the holiday ad trends and suggested strategies is just the beginning. Let us become an extension of your in-house team, helping you finish the year on a high note. Contact us today to request a personalized walkthrough of our AdTech service and see how we can enhance your holiday advertising performance.
