Deal or No Deal?

That’s the question for many brands when planning months out from a big shopping event like Prime Day.

For some brands, it is a hard no. They will not entertain deals or promotions. They have their reasons (brand reputation, margins, etc.) – but deals are among the strongest levers on major events days.

Amazon dropped their 2024 Prime Day dates this week. If you’re a brand, you already decided months ago whether or not you’d have a Prime Day promotion. But to get a better idea of the impact you can expect, let’s look back at Prime Day 2023 and review the data – Deal vs. No Deal.

Historically, brands that choose to run promos have considerably better metrics than those that choose to not run deals. While this remained true for PD 2023, brands that didn’t run deals had better than typical results.

▶ Brands with deals: 100% had a sales increase, with a 238% (3.4x) increase in sales over average. 82% had significant conversion rate favorability, helping to offset the increase in cost per click. About 50% had ACoS favorability, netting 11% overall favorable change vs average.

▶ Brands without deals: 91% had a sales increase, averaging a 67% overall increase over average. Only 6% had ACoS favorability, largely due to lower conversion rates up against competitor deals, though overall average % change was relatively low @ 11% (e.g. 30% to 33%).

For those who have margin available or want to capture more NTB sales, a Prime Day promotion makes sense. What do you think – deal or no deal?