Quarter 3 was a challenging period for all Google Shopping advertisers and collectively, ROAS performance did drop month on month. The below graph shows an aggregated view of all sectors within Google Shopping.
As we now move into Quarter 4, performance will naturally pick up before accelerating from mid-November to mid-December. However, a new set of challenges face us all during this very unique peak and we will try to unpack what some of them are whilst using the data to look at how Google Shopping has shifted over these past 3 months.
Inflation in the UK is expected to rise even further during Quarter 4. Whilst initial predictions have eased, it is still estimated that we will see inflation peak at 10.16% in Q4 2022, before dropping in Q1 2023 and continuing to drop throughout 2023.
Unlike other members of the G7 who are expected to see a fall in inflation during Q4, 2022. We’re anticipating a near 40 year high during the peak trading period which is putting a strain on the average households ability to spend.
Source: https://data.oecd.org/price/inflation-forecast.htm
Not all sectors are impacted in the same way as we can see from the Consumer Price Index. This will leave consumers with more difficult choices to make as to where they spend their hard earned money during Quarter 4.
Source: https://www.statista.com/statistics/281724/consumer-price-index-cpi-united-kingdom/
A Winter World Cup is a completely new to us all and whilst previous football tournaments have impacted online retail positively, we don’t know what the impact of the World Cup during Quarter 4 will be.