This year Amazon celebrated their 5th Annual Prime Day with a 2-day shopping event. Amazon does not release specific numbers around sales, but Internet Retailer estimates that sales hit over $7 billion globally, up 71% from the 36-hour event in 2018.

Amazon shared a number of highlights from Prime Day 2019:

  • Prime members worldwide saved more than one billion dollars throughout Prime Day
  • Members in 18 countries shopped – double the number since the first Prime Day five years ago
  • Members worldwide purchased more than 175 million items, from devices to groceries and more, throughout Prime Day

To understand Amazon Prime Day strategy, below are two examples of our Brand Partners’ performances during Prime Day. Both Brand Partners are in the apparel category, however, their strategies and advertising focuses differed. While there are some nuanced differences in their results, each saw a significant increase in sales during Prime Day and each met (and even exceeded) their Prime Day goals:

Brand Partner 1 focused on Sponsored Brand Ads during Prime Day. While Brand Partner 1 was not running significant discounts, their Prime Day performance proves that an effective ad strategy can increase sales on Prime Day. Brand Partner 1 saw the highest performances on Day 1 of Amazon’s 2-day event, However, Day 2 still had a significant number of  Impressions, Sales, New to Brand (NTB) Sales and RoAS compared to July 14. Brand Partner 1 saw an 88% increase in their RoAS on the first day of Prime Day (7/15). However, it’s not uncommon for your RoAS to decrease over Prime Day.

Because Prime Day is so saturated, it typically takes more spend to achieve the same placement you would otherwise. This is normal and should not cause concern. It is especially impressive to see an increase in RoAS during such a highly saturated time.

Benefits of Sponsored Brand Ads

  • New to Brand Metrics
  • Opportunity to increase the number of viewers
  • Strong placement option to capture new consumers. This is why Brand Partner 1 saw a 197% increase in NTB Sales from the 14th to the 15th.

Shortcomings of Sponsored Brand Ads

  • Sponsored Brand Ads have less placement opportunities than Sponsored Product Ads
  • Ads do not appear as organic
  • Note: Sponsored Brand Ads are extremely competitive, making them a more expensive ad type to achieve relevant placement

MAIN TAKEAWAY: Discounts are not the only way to see Prime Day success – an effective advertising strategy can achieve the same results.

Brand Partner 2 focused on Sponsored Product Ads during Prime Day. Brand Partner 2 is very ad spend conscious and has long-term goals that reflect this strategy. Brand Partner 2 saw the most success on the first day of the Prime event.

Benefits of Sponsored Product Ads

  • Advertisers can typically expect to see a better return with Sponsored Product Ads
  • Sponsored Product Ads will serve in more places. This is why Brand Partner 2 saw a greater number of impressions than Brand Partner 1.
  • Sponsored Product Ads look more organic on the page

Shortcomings of Sponsored Product Ads

  • No New to Brand Metrics
  • You are not able to customize the ad creative. The ad will pull the listing image and title.

MAIN TAKEAWAY: Choosing whether to focus on Sponsored Brand Ads or Sponsored Product Ads is entirely dependent on your goals. If you want to see a greater return on your ad spend, Sponsored Product Ads may be the right choice for your brand.

Final Thoughts

Both Sponsored Brand Ads and Sponsored Product Ads have an opportunity for a daily increase in sales. It is all about having the right budgets, bids, keywords and chosen products. As was the case for Brand Partner 1 and Brand Partner 2, the first day of the 2-day sales event saw the largest increase in Impressions and Sales. 

Prime Day may be over but the holiday season is just around the corner. Looking to optimize your Amazon strategy? Macarta is here to help:

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