How rising Black Friday customer acquisition costs, digital saturation, and poor retention are eroding holiday ROI… and how an omnichannel Black Friday marketing strategy anchored in direct mail can reverse the trend.
The Problem with a Digital-Only Black Friday Customer Acquisition Strategy
Black Friday has become the holiday season’s main event, with billions spent online and in stores. In 2024, U.S. Black Friday sales hit $40 billion, including $10.8 billion online.
A digital-only Black Friday strategy may seem efficient, but these surface stats don’t reveal the real cost to marketers: Marketers relying solely on digital ads are seeing Black Friday customer acquisition costs climb while retention declines.
- Customer acquisition costs (CAC) are up more than 60% over the last five years, with a 15% spike during the 2023 holiday season alone.
- Mobile now drives 69% of Black Friday traffic, but desktop has double the conversion rate.
- Meanwhile, email inboxes are overflowing, social feeds are crowded, and display ad CPMs are increasing 50–100% during the holiday season.
- Marketers are experiencing inflated ROAS, short-term buyers, and diminishing profitability. Digital-only holiday campaigns might make sense on the surface, but they’re eroding long-term ROI.
According to the customer acquisition experts at sg360°, the answer isn’t more digital; it’s a smarter mix anchored by direct mail.
What Digital-Only Customer Acquisition Is Really Costing You
The real price of a digital-only Black Friday strategy isn’t just higher ad bills. It’s wasted spend, shallow customer relationships, and revenue that doesn’t recur after the holiday rush.
1. Wasted Ad Spend
- Digital CPMs jump as much as 50–100% during Black Friday week.
- Campaigns often drive traffic but not revenue, leaving brands with inflated click-throughs but empty carts.
2. Rising Black Friday Customer Acquisition Costs
- CAC has increased 60%+ over five years, driven by saturation and inflation.
- Even with strong ROAS in the short term, rising CAC undermines long-term ROI.
3. Poor Retention of Promo-Only Buyers
- Promo-only buyers acquired through a digital-only Black Friday strategy rarely return, eroding lifetime value.
- The holiday “one-and-done” buyer drains margins and increases churn rates.
4. Mobile Friction Hurts Conversions
- With 69% of Black Friday traffic on mobile, brands face a conversion gap: 3.5% on mobile vs. 6.9% on desktop.
- Slow checkouts and clunky experiences cost millions in abandoned carts.
5. Message Fatigue and Performance Plateau
- Emails are quickly deleted before they’re opened. Digital ads are mostly ignored. Social posts are at the whims of the algorithms.
- Even the best digital campaigns struggle when consumers hit holiday fatigue.
Why Direct Mail Is the Performance Channel You’re Overlooking
Compared to digital ads, direct mail Black Friday ROI consistently outperforms. While digital channels compete for online consumer attention, direct mail remains a powerful channel that gets noticed and engaged with.
- 84% of brands say direct mail delivers their best holiday ROI.
- 65% of consumers are more likely to engage with mail from brands they already know.
- Direct mail pieces live on kitchen counters, fridges, and coffee tables providing a physical reminder long after digital ads vanish.
- Mailboxes remain less competitive, while email inboxes overflow.
Direct mail is trusted, remembered, and acted upon, especially when other channels are maxed out. Direct mail vs digital ads isn’t a zero-sum choice. When used together, direct mail amplifies your Black Friday ROI.
What Works: Direct Mail + Digital Together
The winning approach isn’t just digital ads or direct mail alone. It’s an omnichannel Black Friday marketing strategy that blends both.
At sg360°, our omnichannel flows vary based on clients’ pain points, campaign strategies, budgets, timing, etc. But a coordinated omnichannel campaign might include:
- Digital channels such as email, paid social, and digital display ads to introduce the offer.
- Direct mail, with its higher conversion rates, to provide a physical presence as well as trust and credibility.
- Tools like QR codes and PURLs to drive engagement and spur action.
- Direct mail retargeting boosts conversions, lowering CAC in Black Friday campaigns.
Brands using a similar omnichannel approach can expect to see:
- Higher average order values (AOV)
- Better retention post-purchase
- Stronger CAC-to-LTV ratios
Fixing It: How sg360° Builds Lower CAC Customer Acquisition Campaigns Through Direct Mail + Digital.
sg360° helps brands build profitable customer acquisition strategies that balance direct mail with digital, all fueled by data-driven insights.
1. Audience Insights Engine
- Tap 5,000+ attributes to find hidden high-value segments.
- Identify lookalikes, lapsed loyalists, and high-LTV prospects most likely to convert.
2. Mail + Digital Activation
- Customize the omnichannel flow based on the client’s needs.
- Seamlessly tie offers across direct mail, email, social and digital ads.
3. Creative and Structural Design
- Formats engineered for response
- Personalized by demographic, psychographic, and behavioral data.
4. Closed-Loop Measurement
- Matchback analysis, lift studies, funnel analytics.
- Prove incremental impact and optimize future campaigns.
Final Thought: Don’t Let Black Friday Burn Your Budget
If you’re only using digital, you’re fighting with one hand tied behind your back. Direct mail amplifies campaign results and makes your digital spend work harder.
Ready to Lift your Holiday Conversions?
Get a free campaign consultation and build a lower CAC customer acquisition campaign with higher ROI.