Prime Day 2019 was the most successful yet. But for who?
By Gloria Abromeit, Kristie Schmuck on August 21, 2019
It's been a month since Prime Day. The results are in and the impact was notable. Amazon even claims that Prime Day 2019 was the most successful yet.
But what impact does Prime Day truly have for brands that sell online? Did advertisers employ the right strategies to take advantage of Prime Day traffic?
Prime Day by the Numbers
+175 Million items sold
Total sales surpassed combined revenue from Black Friday and Cyber Monday in 2018
Average hourly spend of US consumers increased +35% vs. Prime Day 2018, +55% higher than Prime Day 2017
87% of online spending during Prime Day's 48-hour window went to Amazon, 7x that of eBay (4.3%), Walmart (4.0%) and Best Buy (3.3%) combined. [eMarketer]
75% of sales on Prime Day came from 3 categories (1) Consumer Electronics, (2) Baby Products (3) Clothing, Shoes and Jewelry [Perpetua]
Baby Products saw the biggest sales increase (561%) followed by Electronics (433%), and Clothing, shoes, and jewelry (136%) [Perpetua]
These numbers demonstrate massive opportunity for the eCommerce giant and brands who sell on Amazon. But we're still left wondering, how much business does this event actually drive for brands? Did advertisers maximize the opportunity in the ways that they should have?
In late June, we published our perspective on how Advertisers should approach Sponsored Ads on Amazon Prime Day.
Today, we're exploring how one tactic performed. We're also sharing some key lessons from Prime Day that advertisers can apply to future shopping events.
Case Study: Perpetua's Prime Day Program - Programmatic Budget Increase
Our data showed that Prime Day was likely to drive twice the amount of traffic, twice the number of sales and a significant increase in conversion rate for brands. The simplest advice we provided advertisers was to increase budgets, not just for the two-day event, but in the days surrounding it as well.
We knew that manually doing so across every campaign, every day, for the duration of Prime Week would be incredibly time consuming. This made it challenging for advertisers to follow our advice.
So, for Perpetua customers, we made it possible to automatically execute the following across all active campaigns:
📈 50% budget increase (Ramp up starting July 12) 💸 100% budget increase on Prime Day (July 15 & July 16) 📉 50% budget decrease (Ramp down starting July 17) 🗓️ Budgets back to original values by July 20
We observed sales and advertising data from over one million ASINs before, during and after Prime Day. The study across Perpetua's customer base shows that advertisers who made programmatic budget increases drove substantially greater revenue than those who didn't.
These results indicate that those who did not opt-in to the programmatic budget increase left profits on the table during Prime Day.
Applying Prime Day Specific Advertising Tactics to all Shopping Seasons
For most of the year, the compass that guides advertising dollars on Amazon is consumer demand. Search, browsing and purchase history are the main data points that are used to target ads.
Shopping events, however, are the exception to this rule. Consumer shopping behavior is frenzied due to increased demand, high volume of deals and increased competition. Intent becomes a less valuable way to target shoppers.
This behavior isn't specific only to Prime Day, we see similar trends during all major shopping seasons (Black Friday, Cyber Monday, Back-to-School, Holiday). These holidays require a distinct playbook that is repeatable, scalable and maximizes profits for brands and sellers.
For consumers, Prime Day may be just a big sale. For advertisers, it is the force that propels the flywheel and sets the baseline for the year to come.
To get started with Perpetua, or connect with one of our data strategists about your Amazon advertising strategy, send a quick note to firstname.lastname@example.org.