Cyber Monday vs. Black Friday for businesses: Understanding the difference

These sales days are now too important for retailers to ignore, and companies should start planning their marketing and retail strategy months in advance. However, before a business creates a solid marketing strategy for these crucial commercial holidays, understanding Black Friday vs. Cyber Monday is a good place to start.

Understanding Cyber Monday and Black Friday

Traditionally, Black Friday takes place on the Friday immediately following Thanksgiving and is now regarded as the official start of the holiday shopping season.

The day reportedly earned the name ‘Black Friday’ because businesses would operate at a loss, or ‘in the red,’ until the day after Thanksgiving, at which point they would turn a profit and be ‘in the black.’ However, this explanation is disputed, as are several other stories of Black Friday origins.

Cyber Monday, meanwhile, occurs on the first Monday after Thanksgiving – and is much more recent. The term was created by Ellen Davis of the National Retail Federation in 2005 and was part of an effort to get increasing numbers of customers to shop online. Since then, it has quickly established itself as the online equivalent of Black Friday.

In recent years, both have become firmly established shopping traditions in the US and around the world, not only with in-person shopping, but also as major events for online holiday shopping sales.

Key differences between Cyber Monday and Black Friday

The main differences between Cyber Monday vs. Black Friday is that Black Friday is generally aimed at the in-store shopping experience, while Cyber Monday is directed toward the online market.

For retailers, the difference between Black Friday and Cyber Monday means developing discrete marketing strategies. In many ways, these two events have come to epitomize the online vs. offline shopping debate. Each event marks a contrast in consumer behavior and creates an incentive for retailers to shift their positioning for optimizing sales.

For example, Cyber Monday deals are often based around ‘lightning deals’: special offers that are only available online for hours, or even minutes. This creates a sense of urgency and encourages consumers to make faster buying decisions with their online holiday shopping. By contrast, Black Friday deals encourage consumers to decide what they want in advance, and they often queue before stores open.

Pros and cons of participating in Cyber Monday

Cyber Monday offers an attractive proposition for retailers for numerous reasons, but it can have its drawbacks too. Small businesses may stand to gain the most with Cyber Monday sales strategies, thanks to their agility and ability to respond to fluctuations in demand.

Pros of participating in Cyber Monday

• Increased demand: Cyber Monday deals can create an influx of demand for products, which can positively impact revenue, profit, and inventory levels.
• Create enthusiasm around a brand: Cyber Monday can be great way of creating hype and interest around a brand, even if it’s a new brand to a consumer.
• Level inventory: Cyber Monday offers an opportunity to shift old stock, freeing up storage space and capital. Clearing out as much inventory at the end of a calendar year can have a positive financial impact.

Cons of participating in Cyber Monday

• Increased competition: The competition for deals is fierce at this time, which can put pressure on a business to run additional discounts or increase their advertising budget for Cyber Monday marketing.
• Impact sales throughout the year: If consumers learn they can get the lowest price during Cyber Monday, then it’s possible they put off purchasing an item throughout the year.
• Requires robust technical support: Websites need to be optimized to deal with the extra traffic a Cyber Monday can bring to a business. The business may need to increase its payment options to satisfy customer preferences as well.

Consumer behavior on Cyber Monday and Black Friday

One study forecast consumer retail sales in the United States in 2025 will hit $5.2 trillion, with Cyber Monday and Black Friday contributing a large portion.² However, consumer behavior particularly Black Friday consumer behavior) can vary between the two.

Although in recent years there has been some blurring of the line, with online shopping trends becoming more of a focus on Black Friday, it remains a day mostly associated with family shopping. Because of heavier Black Friday store traffic, many retailers open early, and shopping malls host special events to create a family atmosphere.

Cyber Monday offers a different kind of shopping experience compared to Black Friday. Consumers often use Cyber Monday to make purchases they were unable to find at the mall or to take advantage of home delivery. Mobile shopping habits have helped Cyber Monday challenge Black Friday’s position as the busiest shopping day of the year.

Understanding the different ways consumers participate in online vs. offline shopping on these two days can be critical to integrate into marketing and communication strategies.

Pros and cons of participating in Black Friday

Black Friday promotions offer many of the same benefits as those for Cyber Monday, although with the added element of customers being physically in-store. Black Friday deals has advantages for businesses, but may present a few challenges.

Pros of participating in Black Friday

• Increased foot traffic and demand: Black Friday encourages in-person shopping, which can create a substantial increase in demand for products.
• Increase customer base: The Black Friday promotions may encourage consumers to step through the retail doors, who normally might not shop there throughout the year.

Cons of participating in Black Friday

• Increased staffing and security concerns: Having lines outside the door may be a great sign for business, but companies should ensure they know how to prepare for Black Friday by ensuring they have proper staffing and security capabilities.
• Encourages bargain hunting: New customers will often be bargain-hunters and may be harder to reach during normal shopping periods.

Target audience considerations

Analyzing consumer demographics regarding Black Friday vs. Cyber Monday reveals significant differences in shopping trends. Black Friday events and Cyber Monday events highlight trends and key differences among the generations when shopping.

The target demographic for Cyber Monday e-commerce activity is younger, with millennial consumers more likely to spend over $1,000 on this day.³ Both days have a similar target audience, thanks to Gen Xers and older Millennials having more disposable income than Gen Z. On the other hand, Baby Boomers are less inclined to spend a lot online and may have other shopping preferences.

Marketing strategies for Cyber Monday

Cyber Monday can provide a significant opportunity for retailers to boost sales and optimizing inventory levels, but it does require careful planning – including a complete Cyber Monday marketing strategy. Cyber Monday tips for marketing include:

Create new purchase opportunities

Selling products in bundles can help move old stock and encourage a higher order value. It can create a sense of urgency if the bundle is only offered once per year.

Make it feel exclusive

Launching exclusive offers and online promotions for existing customers or those who sign up to email campaigns (or both). Offers can range from VIP access to early discount deals or limited-time promotions.

Participate in a partner promotion

Collaborating with online influencers and creators can introduce your brand and product to new consumers. You can also cross-promote another product with another business for further reach.

Run a targeted ad campaign

Social media marketing strategies such as targeted advertising can also help attract new potential customers and create awareness of the brand. It may also be a goodtime to optimize landing pages so they’re reaching the targeted audience.

Offer enticing incentives

Make it even more tempting for customers by offering incentives such as free shipping, a free product with purchase, or tiered-discount level.

Send abandoned cart emails

Sending abandoned cart emails reminds customers of what’s in their cart. It also reminds them of the amazing Cyber Monday deals they might miss out on if they don’t act soon, creating more urgency.

Launch a limited-edition item

Use this time to offer a limited-opportunity purchase, either with a new product or new bundle. For example, if you’re a candle company then you can offer a scent only available during Cyber Monday or a limited-edition candle jar design.

Marketing strategies for Black Friday

Black Friday vs. Cyber Monday marketing involves separate strategies, with consumers responding differently to in-store discounts and promotions compared to online ones. Effective Black Friday marketing strategies can involve a mix of in-store and online incentives.

Being physically in a store can provoke different reactions and responses, and retailers need to be aware of how to harness these. Black Friday marketing ideas include:

Create urgency for in-store purchases

Doubling down on exclusive in-store deals or adding unique offers such as free gifts to create a sense of urgency and a reason for someone to shop in-store versus online.

Run incentives for both online and in-store

Incorporate incentives for customers to purchase online but pickup in store. This can range from additional discounts to a free product with purchase. Adding a click and collect option, as an increasing number of Black Friday sales are now online.

Optimize social media

Investing in social media and email marketing campaigns in the run-up to the day, offering sneak peaks of special offers. Use this time for creative Black Friday advertising ideas through social media, such as live stories, sneak peaks, or a social media giveaway.

Leverage a loyalty program

Launching and leveraging loyalty programs is a useful tactic to keep shoppers coming back all year round. Loyalty programs can offer additional discounts, exclusive launches, and early access to products.

Limited-time discounts

Encourage in-store shopping by offering a free gift with purchase or with a minimum purchase amount during certain hours. You can also run a doorbuster deal that is only available during the first few hours of store opening.

Extended hours

Open the retail store earlier and stay open later to encourage shopping throughout the day. Make sure this is part of any advertising so the customer knows there’s extra shopping time available.

Does Black Friday or Cyber Monday generate more money?

While Black Friday and Cyber Monday are two different events, the closeness in date means there may be some overlap in your business.

According to the National Retail Federation, Black Friday is the most popular shopping day for retailers, both in-store and online. In 2024, 81.7 million consumers shopped in stores on Black Friday, while 87.3 million shopped online.⁴

Compare that to Cyber Monday, which in 2024 attracted 64.4 million consumers.⁴

Black Friday was still a success for retailers, with shoppers spending a record $10.8 billion.⁵

Should you take part in both events?

The idea of two of the biggest shopping days of the year coming on either side of the same weekend can present a potential challenge for small businesses.

One of the best Black Friday and Cyber Monday marketing tips is fine-tuning your overall strategy. If you do participate in both, you need to decide which deals you want to highlight on which day and start putting in the work in advance. There may be a lot of overlap here, especially when using email or social media marketing campaigns.

Cyber Monday website optimization (and Black Friday) means ensuring websites are in top working order, with any glitches ironed out and landing pages leveraged to their full potential. Setting goals in advance can streamline operations.

Optimization is another key strategy for stocking levels too, which should be closely analyzed so the business can avoid a stock-out situation or sitting on too much inventory.

The marketing and sales boost from both events can have enormous potential. Not only can businesses make sales on the day, but they can also win a whole new set of customers and build brand awareness. However, this does require advanced prepping for Black Friday and Cyber Monday sales events.