Cyber Five Recap: Top Five Retailer Insights to Finish 2023 Strong

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Cyber Five 2023 astounded retailers and shoppers alike, shattering records and exceeding expectations despite the economic downturn. As the dust settles on the five-day shopping extravaganza, we’re here to dive into the numbers, glean critical insights to finish out 2023 strong, and spotlight how our clients matched up to overall Cyber Five performance. Spoiler alert – they knocked it out of the park.

CYBER 5 AT A GLANCE

So, how did Cyber Five perform year over year (YoY)? The shopping frenzy from Thanksgiving through Cyber Monday reached unprecedented heights, with a staggering $38 billion in overall revenue, marking a 7.8% increase from the previous year. Black Friday exceeded projections at $9.8 billion, exhibiting a robust 7.5% YoY growth, while Thanksgiving spending rose to $5.6 billion, a notable 5.5% increase. The cumulative online expenditure from November 1 to Cyber Monday hit $109.3 billion, reflecting a substantial 7.3% YoY surge.

As Google’s largest shopping agency, we make it our personal mission to help our clients outperform. As a result, during Cyber Five, our clients boasted a 12.7% YoY increase in revenue – almost 5% higher than the overall e-commerce industry YoY. Thanksgiving led the charge with a notable 28.7% surge, closely followed by Black Friday at 19.7%. Small Business Saturday and Cyber Monday contributed to the overall success with gains of 12.8% and 5.7%, respectively. 

Retailer Insights from Cyber 5 2023

1. Efficient Ad Spend: In contrast to Adlucent’s flat spend YoY, -1.3%, Google saw Cyber Monday spend increase 7.5% and Black Friday spend increase 9.7% YoY. With a lower spend and revenue coming in at a 12.7% increase YoY, Adlucent saw a 15.3% increase in ROAS (return on ad spend) YoY. In other words, our clients saw more bang for their buck. 
2. Discounts Reign Supreme: Despite economic conditions, consumers were willing to spend if discounts were high enough. Brands that promoted fewer discounts saw softer YoY performance. In fact, during Cyber Five, consumers used discount codes with 29% of their orders. And according to Google, shoppers were holding out for discounts, reporting they were looking to see 30% discounts before they began spending. 
3. Record High BNPL Usage: According to Adobe, BNPL (buy-now-pay-later) usage hit a record high on Cyber Monday, with consumers using the credit facilities for increasingly large purchases. The company said the total value of BNPL transactions on the day was $940 million, up 42.5% from the previous year. But, despite BNPL Services continuing to boost sales in recent quarters, 42% of US users said they’ve made a late payment on a BNPL loan.  
4. Average Order Value (AOV) Skyrockets: During Cyber Weekend (November 25 and November 26), AOV increased by 3.2 percent, while Adlucent clients saw AOV increase by a staggering 6.55% YoY. From an AOV of $161.64 in 2022 to $174.10 in 2023, consumers are proving that they are willing to spend if the offer aligns with their needs and expectations. 
5. When to Increase Spend: On Small Business Saturday, our retailers experienced an impressive 12.8% surge in revenue. Notably, this was the sole day when we elevated our ad spend, marking a substantial 7.5% YoY increase. In contrast, the industry witnessed a modest 7% YoY growth in revenue (5.8% less than Adlucent advertisers), underscoring the strategic advantage of boosting ad budgets while others may be scaling back—a tactic that brings your brand to the forefront of consumer’s minds.

CONCLUSION

Cyber Five 2023 pulled out all the stops, exceeding expectations and leaving us with some big questions about what’s next.

Now is not the time to let up. According to Google, in 2022 US consumers spent as much in the 3 days after Cyber Monday as they spent on Black Friday and Cyber Monday combined. Digital retail marketers should continue to ride the wave, adapting strategies and leveraging consumer enthusiasm well into the days that follow Cyber Five. Lean into discounts, monitor and adjust ad spend, and invest in personalization to capture shoppers where it matters most. 

With a whole lot of human ingenuity and a dash of machine learning, we are here to serve as an extension of your in-house marketing team. Our tech stack empowers you to activate media, model analytics, and connect your data for always-relevant campaigns. 

Were your Cyber Five results lackluster? Partner with us today and achieve results tomorrow.

Eden Pierson

Eden is a content manager with a wide range of experience in the marketing space. From B2B advertising, branding, and retail marketing, she is passionate about curating content that resonates with target audiences.