Here’s why maintaining or even increasing your Amazon advertising budget in Q4 is essential.
It’s the Most Wonderful Time of the Year for Shoppers
Q4 encompasses some of the year's biggest shopping events: Black Friday and Cyber Monday. These shopping holidays are synonymous with significant discounts and deals, driving a massive surge in consumer spending.
The period leading up to the holiday season is marked by increased gift purchases. Shoppers are not only looking for deals but are also in a buying mindset, seeking gifts for friends and family. Many consumers continue to shop right up until the holidays, taking advantage of expedited shipping options and last-minute deals. Additionally, this year in particular, Cyber Monday falls in December, which shortens the time between key sale days and Christmas. Additionally, Hanukkah and Kwanzaa both occur in late December - don’t count those shoppers out!
These events create a perfect storm of high shopper intent and increased online traffic, making Q4 the most lucrative time of year for e-commerce brands. Cutting media spend during this period means missing out on these peak opportunities.
Expert Tip: Creating a comprehensive gift guide on your Brand Store is an effective strategy for directing traffic from your Sponsored Brand Ads, enabling shoppers to explore your offerings.
Increased Competition
While some brands might consider cutting their media spend, those who increase their investment in Amazon advertising can gain a significant competitive advantage with increased visibility and higher conversion rates. Higher ad spend translates to more prominent placements in search results and on product detail pages. This visibility is crucial during a time when consumers are inundated with choices. During the holiday season, many brands ramp up their advertising. Reducing spend can lead to decreased visibility, making it harder to compete.
Expert Tip: Defending your brand during Q4 will be imperative. Double down on Sponsored Display to target your own PDP’s to take up real estate, and cross-sell.
Brand Momentum Matters for Q1
The final months of the year not only close out the year but also set the stage for Q1. Scaling back advertising in the final months can disrupt brand momentum, making it harder to regain consumer attention at the start of the new year. Sustained or increased media spend in Q4 helps maintain brand visibility and reinforces consumer awareness, which is crucial when Q1 spending dips post-holidays. By remaining top-of-mind during the busy season, brands can start the new year strong, with established relationships that lead to continued sales.
Expert Tip: Q1 is just as important to set the stage for the year. There’s typically less competition in Q1 so be sure to reserve budgets and not cut too drastically from the Holiday season.
Adaptation, Not Elimination, is Key
While cutting media spend altogether is a risky move, optimizing and adapting your advertising strategy is a smarter approach. Brands should focus on refining their media tactics for Q4, ensuring they’re reaching the right audience with relevant, timely messaging. Whether that means shifting from broad awareness campaigns to more targeted, performance-driven ads or investing in newer platforms like social commerce, brands can still be strategic without cutting spending altogether.
Expert Tip: Implementing a full-funnel strategy on Amazon is essential for achieving success. We recommend considering the launch of a comprehensive approach that incorporates all advertising formats.
Q4 is a critical period for brands, especially those on Amazon. Cutting media spend during this time can result in missed opportunities and lost sales. Instead, brands should consider increasing their advertising investment to capitalize on high shopper intent, gain a competitive edge, and drive both immediate and long-term growth. By leveraging Amazon’s robust advertising tools and maintaining a strong presence, brands can maximize their potential in the most lucrative quarter of the year.