Ads Performed Well Despite Increases in Competition and Costs
These days, costs are going up everywhere. No one felt this more than brands and retailers with the increase in ad costs. Ad spend was up around 30% when compared to 2021. This is due not only to increased fees and competition but also to anticipated higher spending based on Prime Day data and more deal promotions.
How Prime Early Access Sale Influenced Cyber Five Ad Spend and Performance
With the Prime Early Access Sale (PEAS) just a month prior, brands and retailers had the unprecedented opportunity to test out ad campaigns and build audiences closer to the holidays than before. Unfortunately, not all brands and retailers took advantage of PEAS, instead preferring to save their ad spend for the Turkey Five and relying on July Prime Day data instead.
As a result of the increased ad spend, ad sales for the top 5 categories also increased around 32% but showed a muted RoAS, likely due to more deal promotions. Inventory availability issues were felt much less by retailers and brands, with more opting to run deals across their catalogs. Some were even hoping to get rid of stagnant inventory left over from earlier.
Another bright spot is that CPCs decreased for three top five categories compared to 2021. This is a welcome reprieve for sellers, with Thanksgiving showing the lowest CPC. The highest CPC day was Cyber Monday.
With increased ad spend, impressions also rose this year, allowing consumers more choices than ever before. CPM was relatively flat compared to 2021, with a 2% average increase across categories.