Table of Contents
- Introduction
- Amazon Prime Day Advertising Overview
- Amazon DSP Ads: The Rising Star
- Performance Metrics: Day-wise Insights
- Competitor Reactions: Walmart and Google
- Implications for Other Retailers
- Strategic Takeaways for Advertisers
- Conclusion
- FAQs
Introduction
Amazon Prime Day 2024 shattered previous records, turning into a sales extravaganza that attracted vast attention from retailers and advertisers alike. Amazon's unparalleled sale event not only drove significant advertising spend within its ecosystem but also had notable repercussions on other platforms like Google and Walmart. This blog post delves into the advertising trends observed during Amazon Prime Day 2024, providing insights into spending behaviors, platform performance, and broader implications for digital marketers. By the end of this article, you'll have a comprehensive understanding of advertising dynamics during Prime Day and actionable tips for future campaigns.
Amazon Prime Day Advertising Overview
Prime Day has grown into a cornerstone event for Amazon, providing an impetus for substantial digital advertising investments. During the two-day event, advertisers ramped up spending to capitalize on the surge in shopping activity, resulting in remarkable growth metrics across various ad formats.
Sponsored Products Lead the Pack
During Prime Day 2024, Sponsored Products emerged as the go-to advertising format for brands within the Amazon ecosystem. This category commanded over 80% of the Ad Console spend in Q2 2024. The investment in Sponsored Products surged by 29% year-over-year (Y/Y) compared to Prime Day 2023. Additionally, the number of clicks on Sponsored Products increased by 15% Y/Y, although the average cost-per-click (CPC) witnessed a 12% rise.
Decline in Sponsored Display
Conversely, Sponsored Display saw a continued decline in spending, following a reduction pattern from Q2 2024, where it fell by 36%. During Prime Day itself, Sponsored Display spend was down 26% Y/Y. This decline underscores a strategic shift among advertisers who are increasingly favoring alternatives like Amazon DSP ads.
Amazon DSP Ads: The Rising Star
Amazon Demand-Side Platform (DSP) ads witnessed a meteoric rise in investment as advertisers recognized their potential for precise audience targeting. The two days of Prime Day 2024 saw a 400% spike in DSP ad spending compared to June 1st. This is a sharper increase compared to the previous year, demonstrating growing confidence in DSP ads.
Throughout the first half of July leading to Prime Day, daily DSP spending was 63% higher than early June. When compared year-over-year, Amazon DSP spend during Prime Day soared by 143%, leading to a 177% increase in impressions. Interestingly, the cost-per-thousand-impressions (CPM) decreased by 12%, signaling more efficient ad spend.
Performance Metrics: Day-wise Insights
The two-day window of Prime Day 2024 revealed important trends on a daily basis. The first day typically sees higher sales, a trend that continued this year with 55% of Sponsored Product sales occurring on day one. This aligns with historical data, where the first day often captures the bulk of sales.
New-to-Brand Customers
Prime Day also boosted the acquisition of new-to-brand customers. Sponsored Brands ads, for example, saw a jump in new-to-brand purchases, from an average of 57% in early July to 66% during Prime Day. Similarly, Amazon DSP ads saw their new-to-brand purchase share rise from 47% to 59%.
Competitor Reactions: Walmart and Google
While Amazon dominated with its Prime Day promotions, competitors like Walmart and other retailers also aimed to capitalize on the shopping frenzy.
Walmart Deals Event
In an attempt to counter Amazon, Walmart held its own "Walmart Deals" event from July 8th to 11th. Despite billing it as their largest deals event ever, Walmart experienced only a modest increase in Sponsored Product spending (up 6% relative to July 1st) before and during the event. However, this spending saw a decline during Prime Day itself, suggesting Walmart's struggle to maintain advertiser momentum against Amazon's gargantuan influence.
Google Shopping Auction Dynamics
Amazon not only fortified its own platform but also amplified its presence in Google Shopping auctions. Traditionally, Amazon pauses its Google Shopping ads during Prime Day, but this year, it leveraged these ads to greater effect.
Throughout the first half of July, Amazon's share of Google shopping impressions hovered in the low 60% range, which surged to 74% during Prime Day. On the event's second day, this share peaked at 76%, overshadowing competitors like Walmart, whose median impression share fell from 26% to 21%.
Implications for Other Retailers
Despite the aggressive push from Amazon, other retailers saw notable trends in their Google Shopping performance that offer strategic insights.
Conversion Rates and Order Volumes
Interestingly, while the total number of impressions on Google Shopping ads for other retailers fell by 10% over the Prime Day event, there was a significant uptick in conversion rates and order volumes. Specifically, conversion rates rose by 17% during Prime Day's second day, driven by consumers eager to finalize their purchasing decisions.
Even post-Prime Day, conversion rates remained elevated, although the volume of orders began to taper. This suggests a temporary shift in demand influenced by Prime Day, emphasizing the importance of timely capital utilization during such significant retail events.
Strategic Takeaways for Advertisers
Prime Day 2024 has offered several touchpoints for advertisers to consider for future events:
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Leverage Prime Day Momentum: Brands should capitalize on the surge in online traffic during Prime Day by aligning their ad spend strategically, focusing on high-performing formats like Sponsored Products and DSP ads.
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Optimize for New-to-Brand Customers: Prime Day's tendency to attract new customers presents an opportunity. Advertisers should craft campaigns that encourage customer acquisition and long-term loyalty.
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Competitive Positioning: Competitors to Amazon must plan their events thoughtfully and invest in advertising channels that counteract Amazon's dominance, like Google Shopping.
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Effective Use of Google Auctions: Brands can benefit from Prime Day by optimizing their presence in Google Shopping auctions, understanding that higher conversion rates can offset lower impression shares during this period.
Conclusion
Amazon Prime Day 2024 has underscored the importance of strategic advertising investment and the dynamic nature of digital retail ecosystems. By analyzing spending behaviors, platform performances, and resulting sales trends, advertisers can draw actionable insights to optimize future campaigns. The key is to be adaptive and capitalize on new opportunities while learning from past experiences to continually improve outcomes.
FAQs
Q: How did Amazon DSP ads perform during Prime Day 2024?
A: Amazon DSP ads saw a significant spike in spending, with a 400% increase compared to June 1st and a 143% year-over-year growth. Impressions rose by 177%, while CPM decreased by 12%.
Q: Did Walmart's Deals Event impact Prime Day?
A: Walmart's Deals Event led to a short-lived increase in advertiser spending; however, their Sponsored Products spend declined during Prime Day, indicating Amazon's stronger pull.
Q: What was Amazon's share in Google Shopping auctions during Prime Day?
A: Amazon's share in Google Shopping impressions spiked to 74% during Prime Day 2024, peaking at 76% on the second day, overshadowing competitors such as Walmart.
Q: What are the key strategies for advertisers during Prime Day?
A: Advertisers should focus on leveraging high-performing ad formats, acquiring new customers, and strategically positioning their brand against Amazon's dominance in Google Shopping auctions.
