Holiday Social Media Ads: Go all in or pull back?

If you’re a service-based business, you might wonder if it’s worth even trying to compete with giants like Amazon and Temu. Or maybe you’re selling a high-end product, like grills or outdoor furniture, and want to position yourself as the go-to gift choice for affluent buyers. No matter your business type, having a holiday ad strategy is crucial. Here’s how to make the most of your social media ads during November and December. 

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The Holiday Ad Landscape 

Every year, ad spending skyrockets during the holidays. In 2022, U.S. social media ad spending reached a record $64.7 billion during the season. E-commerce giants like Amazon dominate the space, which means ad costs go up for everyone. Facebook and Instagram auctions get hyper-competitive, with costs per click (CPC) jumping 50%-70% during peak weeks. If you’re used to paying $1.50 per click, be prepared for it to increase to $2.50 or more. 

But don’t pack it in just yet. Local and luxury businesses can still thrive—you just need a different strategy. 

Holiday Social Ads for Service Businesses 

For service-based businesses like landscaping, outdoor lighting, or pool installations, the holidays may not be your prime sales season. But here’s how to get the biggest bang for your buck: 

1. Reduce Your Overall Ad Budget

With costs going up, it’s okay to pull back on your ad spend. A 30%-50% reduction is a good starting point for service businesses. If your peak season isn’t during the holidays, you could cut even more—up to 70%. The key is to avoid stopping your ads altogether. Keep some budget for awareness to maintain momentum. 

Look back at previous data. Did you see a big increase in conversions last holiday season, or did your cost per lead rise without better results? If your cost per lead increased without much improvement in conversions, that’s a sign to pull back. 

2. Focus on “Top of Funnel” Ads

Instead of pushing for immediate sales, shift your focus to brand awareness. When people are bombarded with ads, nurturing your audience is smarter than trying to convert them right away. According to Facebook Business, brand awareness campaigns during high-traffic periods saw 30% lower costs per impression compared to conversion-focused campaigns. 

Run ads that showcase your expertise, retarget past visitors to your website, and keep your brand top-of-mind for when they’re ready to invest. This is also a great time to lean into video ads or rerun your best content. 

3. Adjust Your Expectations

Don’t expect a flood of calls or leads during the holidays, especially if your service isn’t a gift-oriented product. But remember, affluent buyers plan ahead. Plant seeds now for future sales. You want potential clients to remember you when they’re ready to upgrade their outdoor spaces, even if they don’t act immediately. 

Holiday Social Ads for Product-Based Businesses 

If you’re selling luxury products like grills, patio furniture, or outdoor fireplaces, the holidays are your time to shine. Here’s what you should focus on: 

1. Increase Your Ad Budget and Narrow Your Audience

Now is the time to up your ad spend, but be smart about it. Focus on targeting the right audience instead of trying to grow your reach. According to eMarketer, 46% of affluent shoppers buy luxury items directly from social media ads during the holidays. Stick with audiences that have worked well for you throughout the year and aim for quality over quantity. 

2. Use Gift-Oriented Messaging

Your ad copy and visuals should scream “gift.” Show how your product will be the perfect gift for that hard-to-buy-for loved one. For example, if you’re selling a grill, focus on how it can bring families together. You could use an image of a summer barbecue, but add a holiday twist with a bow and festive messaging: “This Christmas, give the gift that turns your backyard into a year-round gathering place.” 

3. Have Realistic ROI Expectations

Holiday competition is fierce, so even if your targeting and messaging are spot-on, your ROI may not be as high as expected. Keep in mind that you’re building your brand and making long-term connections with potential customers. The key is to remain visible while your competitors may be pausing their ads. 

Practical Tips for Both Service and Product Businesses 

No matter what you’re selling, here are a few general tips for making your holiday ads work: 

1. Set Realistic ROI Expectations

During the holidays, your costs will go up, and conversions may not double. But keeping your ads running will pay off in the long run, as consistency builds trust with your audience. 

2. Target Narrow Audiences

This is not the time to go broad. Focus on small, specific audiences that are more likely to convert. According to eMarketer, brands using narrow targeting saw a 36% reduction in cost per lead compared to broader campaigns. Stick with the audience that has worked best for you all year. 

3. Create Early Bird Promotions

Urgency can drive action during the holidays. Offer “early bird” promotions that encourage people to purchase now with the option to schedule service or delivery later. Ads that mention scarcity, like “Only 10 spots left for holiday delivery!” can push potential buyers to act. 

Recap 

Whether you’re a service business or a product business, the holidays are no time to turn off your ads. Adjust your budget—whether up for products or down for services—target narrow audiences, and manage your expectations. You’ll be in a stronger position when it comes time to nurture those leads and make future sales.