Day 1 of Prime Big Deal Days was a success, and we’re ready for Day 2! Here are 5 key takeaways from Day 1 compared to last year:
Hyper-Personalized Deals Dominate
-Lots of default recommendations on the homepage
-Personalized offers based on viewing history on mobile and even with Rufus
-Takeaway: Customer acquisition starts well before major events. Build awareness early, then use event deals to convert first-time buyers. Tools like AMC and custom audiences make cohort-based targeting easier than ever.
Merchandising & Pricing Strategy Continues to Evolve
-Red was again the color of the Prime Big Deal Day badging, no matter the deal
-On the mobile search engine results page, coupons now appear as part of "Subscribe and Save,". Because of this change, we are reconsidering the effectiveness of launching coupons for products not eligible for Prime Exclusive Discounts (PED).
-Pricing reference point: Coupons and discount price now must match the lowest price of any seller on the product from the last 30 days.
-Lightning deal limitations: Savvy sellers can no longer adjust the quantity of units for a deal mid-flight. This removes an extra push that sellers often took advantage of
Cost Per Click and Competition on Key Terms Continue to Rise
-CPCs were up 14% compared to last year and 57% above our September average. To counter this, we strategically shifted investments away from branded terms and focused on owning generic keywords, maximizing offensive ad strategies rather than defensive ones.
The Sponsored Brand Video Opportunity
Sponsored Brand Video (SBV) placements provided a significant opportunity, even for smaller brands, allowing them to appear on high-traffic keywords like "anti-aging creams" and "hair care." Despite limited inventory, fewer brands were competing for SBV spots, making it easier to gain visibility compared to Sponsored Product ads.
Amazon's Affiliate Push
The mobile "Inspire" page was transformed into a "deal inspiration" page, setting the stage for affiliates to promote products.
While social selling can be impactful, we question the unit economics after factoring in affiliate fees, Prime Day discounts, and Amazon's other fees.
Key Performance Metrics (vs Last Year):
Total Sales: +12.01%
Organic Sales: +19.81%
Ad Sales: -0.50%
Net Sales: +15.44%
CPC: +14.22%
Ad Spend: +32.95%
Impressions: +110.33%
Oct 8th, 2024 generated 31.73% of September's total monthly sales, highlighting the event's significance.
Recommendations:
Optimize ad spend vs. organic growth balance
Develop strategies to re-engage existing customers
Conduct brand-by-brand performance analysis
Smart decisions and a strategic mindset continue to drive success for our clients in this rapidly changing marketplace. What strategies did you find most effective this Prime Big Deal Days? Share your experiences below!