2022’s Amazon Prime Day is in the rearview mirror, and it was one for the record books. According to Amazon, it was their “biggest Prime Day event ever,” with more than 300 million items purchased worldwide. Now that Prime Day is over, brands should already be thinking about the next big shopping event: the holiday rush. The performance and data from Prime Day can, and should, influence future strategies for Q4 and holiday shopping.
However, there’s still some time to celebrate the success of Prime Day! We’re sharing some of the exciting results from Amazon, our Code3 clients, and what it means for your brand and ecommerce in the critical coming months.
The Inflation Effect
Worldwide, Amazon’s best-selling categories on Prime Day include Amazon Devices, Consumer Electronics, and Home, which echoes what our Code3 Search Strategists observed for competitiveness in paid search. On a per-click basis, the top 2 most competitive categories were Home & Kitchen and Electronics. The top 3 converting categories for Code3 clients were Toys & Games, Office Products, and Tools & Home Improvement. Additionally, when looking at various price ranges of products, items in the $100-$250 price range are what converted the most on Prime Day.
While shoppers were still excited about the event and spending - total online retail sales in the U.S. during Prime Day and other marketplace events were more than $11.9 billion - consumers seemingly kept inflation in the back of their minds and reached for necessities and everyday household items over larger, splurge items over $500. Some shoppers may also be checking off their holiday list early, with high conversion rates in the Toys & Games category.
Prime Day Livestreams and Video
Amazon reported Prime Day livestreams through Amazon Live, and they had more than 100 million views with thousands of users hosting live video events. This trend is one to keep in mind as brands develop a holiday shopping strategy - video is becoming increasingly popular and can be used in DSP advertising, on a PDP, and much more.
Code3 Client Results
Results from the Code3-managed paid search point to an incredibly successful Prime Day for our clients. Clients found Prime Day was a great way to reach new customers and introduce them to their brands, which can pay off big in Q4. The % of New-to-Brand sales from Sponsored Brand campaigns during Prime Day was 72% compared to 53% during the lead-up timeframe before the event.
Shoppers converted at a higher rate on Day #2 vs. Day #1, indicating some shoppers may have been more likely to “wait and see” if they could score a better deal on Day 2. Also important to note, conversion rates were down slightly compared to last year. This is another sign that shoppers may have been more apt to continue shopping for better deals, and less likely to click the buy button at first glance. Keep this in mind when planning holiday deal strategies - consumers will be more likely to be on the lookout for big deals and aren’t afraid to wait for them.
Across our clients for sponsored product campaigns, Code3 Search Strategists saw top-of-search placement converting 1.9x higher than product detail page placements. However, PDP placements did see a 5% higher Return on Ad Spend (ROAS), due to being 50% cheaper on a per-click basis ($2.00 vs. $4.04). This is vital information for brands with limited budgets to keep in mind for holiday shopping periods. If budget isn’t an issue, brands may want to make a strategic change in favor of top-of-search placement.
Average Cost per Click (aCPC) was 14% higher this year for Prime Day, indicating increased competition with more advertisers, more aggressive bidding to win key placements, or a combination of both.
When it comes to the various types of deals offered by brands, including coupons, lightning deals, best deals and spotlight promotions, lightning deals were the clear winners this Prime Day. They had a:
- Click through rate that nearly doubled when compared to the other 3 promotion types
- Conversion rate that was 1.5x higher than the second highest converting promotion type
With the momentum of Prime Day leading the way, now is the time to start thinking about Q4 strategies. Brands should use Prime Day data to their advantage and make adjustments to their plans for further success during the critical holiday period. If you could use a strategic partner to help fine-tune your strategies, contact us today.
Note: All Code3 data points are reflective of all Amazon paid search/sponsored ad campaigns under Code3 management at the time of Prime Day. Data currently only accounts for one day of sales attribution, and some numbers will likely fluctuate over time.