As we approach Black Friday, focusing on Black Friday ads profitability is essential to maximise your brand’s success during this pivotal shopping season. Rather than chasing revenue or ROAS alone, profit-first strategies will ensure long-term growth. Below is a checklist to help you cover every key area, from contribution margin and creative testing to site optimisation and customer retention.

1. Prioritise Contribution Margin

Instead of solely focusing on revenue or ROAS, prioritise contribution margin, which gives a true measure of profitability after marketing spend. This will align teams to focus on profits rather than just sales.

Check out our blog on: The Problem with ROAS: why it’s blocking your Shopify growth

2. Monitor Profitability Curve

Closely track your ad spend to ensure it aligns with contribution margin goals. Analysing this metric helps identify the balance point for maximum profit, giving you a clear signal when it’s time to increase or decrease spending.

3. Set a Clear North Star Metric

Define your primary objective for Black Friday – whether that’s revenue growth, profit maximisation, or customer acquisition. This North Star helps align budget, customer strategy, and overall success metrics.

4.  Choose a Profit Path

Identify the profitability path that suits your business:

• New and Repeat Customer Profitability: Generate profit on both new and repeat sales.
• Break-even First Order: Target break-even on the first order and achieve profitability on repeat orders.
• Loss on First Order, Profit on Repeat: Accept a small initial loss with the goal of achieving profitability on future orders.

If you have high repeat-purchase rates, you may want to increase new customer acquisition efforts, even if the first order isn’t profitable, because long-term customer value will balance the equation.

5. Start creative testing early

Ensure you’ve been testing your creative concepts to identify winning assets. Run Black Friday campaigns separately from regular ads for targeted optimization without risking interference with non-promotional content.

6. Use SMS for Instant Communication

SMS is a powerful, immediate channel for reaching customers during Black Friday. Use it strategically to send timely updates, especially in high-shopping windows for added engagement.

7. Focus on Contribution Margin Without Discounts

Instead of planning around discounts, set profitability targets that reflect the full value of your product.

8. Reassess CPA and Margin Goals

Adjust your CPA (Cost Per Acquisition) and margin expectations in preparation for increased advertising costs (CPMs) common during the Black Friday season. This approach will help you maintain profitability even without discounting, as it keeps customer acquisition costs balanced with your expected margins.

9.Consistency Across Touchpoints

Your Black Friday campaigns should have a unified brand message across paid social, email, and SMS channels. Ensure cohesive design and messaging for a seamless customer experience.

10.Balance Revenue and Profit Goals

Use data from last year to set revenue and customer acquisition targets, considering trends like AMR (Adjusted Marketing Revenue). Engage your repeat customers with special offers to boost high-margin sales.

11.Freeze Changes by Early November

By the first or second week of November, halt any significant changes to the website. This allows time to stabilise and troubleshoot any potential issues before the high-traffic period.

12.Focus on Product Pages

Black Friday visitors are ready to convert, so ensure your product pages are fully optimised with trust signals like detailed descriptions, reviews, and user-generated content (UGC).

13. Leverage Social Proof and UGC

If you have UGC from social media, embed these assets directly on your product pages to enhance credibility and keep customers engaged with relatable content.

14. Avoid the “Leaky Bucket”

Identify and fix any conversion leaks, such as high-exit pages or cart abandonment issues. Direct ad traffic to optimised landing pages that match the content of your ads to minimise drop-offs.

15. Consider On-Site Quizzes

Integrate quizzes on your site for personalised user experiences. Quizzes can achieve conversion rates as high as 20-25%, while also gathering data that informs future marketing efforts.

16. Targeted Email and Retention Strategies

Use segmentation to target customer groups with tailored offers. Personalise emails based on customer preferences to boost repeat purchase rates and increase engagement.

17. Focus on Re-engagement and Loyalty

Engage past customers by offering exclusive Black Friday deals. Personalised offers encourage repeat purchases, which can significantly boost revenue during the holiday season.

Review this checklist and get ready to make the most of Black Friday. Align tactics with a focus on profitability, clear customer acquisition tactics, and ensure your site is optimized for a seamless user experience.