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Prime Big Deal Days Recap and Analysis
Prime Big Deal Days, Amazon’s second holiday prelude event, which took place on October 10th and 11th, not only surpassed its initial holiday shopping event from last year – Prime Early Access Sale but also established itself as the largest October holiday kickoff sale in the history of the e-commerce giant.
Prime members collectively purchased hundreds of millions of items, with more than 150 million of these purchases coming from third-party sellers, which form the bulk of the Gross Merchandise Value (GMV) on Amazon’s expansive marketplace. This exceptional performance is all the more remarkable considering the prevailing harsh economic conditions.
Below we will examine the results from Feedvisor customer sales and advertising data across Amazon’s U.S. marketplace during Prime Big Deal Days with comparisons to last year’s Prime Early Access Sale, identifying key trends and KPIs that helped inform our insights and projections for the remainder of the year.
Read on to discover how top brands and retailers are leveraging data to shape their Prime event strategies for the holidays and future tentpole events based on changing consumer behavior.
Ad Spend and Ad Sales Were Up Compared to PEAS’22
Ad spend for Prime Big Deal Day’s was much higher than PEAS’22, with sellers planning ahead now that the event was expected. Depending on the category, advertisers ranged from moderate to slightly high when it came to spending, though not as high as July’s Prime. Many chose to save their budgets for the bigger Cyber 5, now dubbed Cyber 11, time period.
Riding on the success of July’s Prime, ad spend increased by 37%, compared to PEAS, with a majority spent on the first day of Big Deal Days. On average, ad sales increased by 27% compared to PEAS, with ad sales on day 1 representing 55% of sales over the two days.
Of the top 5 categories, Electronics had the highest percentage of sales from ads, with a 75% increase compared to PEAS. Ad spend was up 41% in this category, while return on ad spend (RoAS) was also up 79%. This is a very competitive market with sought-after products for which consumers were on the hunt, such as Smart TV’s, noise-cancelling wireless headphones, smartwatches, and smartphones.
Across the top 5 categories, ACoS decreased 57% compared to PEAS, while RoAS increased 111%, thanks to unique strategies. The Home & Garden category saw the most significant increase in RoAS (33%), while Apparel saw an 8% bump.
With Cyber 5 morphing to Cyber 11, an apples-to-apples comparison of last year’s holiday shopping results will be tricky, if not incredibly inaccurate. Anything will go this year as retailers face new challenges with inflation, rising shipping costs, and a consumer who’s more concerned about paying bills than ever before.
With a current prediction of holiday sales growth hovering between 3.5% and 4.6%, hitting $1.54 trillion (based on the period of Nov 1st to Jan 1st) the economic hardships are top of mind for retail experts.
In today’s market, consumers are increasingly driven by substantial discounts, making it even more critical to ensure that your products and deals stand out in the continually expanding competitive landscape. To achieve this, having cutting-edge technology and a team of experts at your disposal becomes essential. They can skillfully formulate a winning strategy by combining elements such as content, keywords, advertising, and repricing. This strategic approach is crucial in maximizing your product’s visibility, driving engagement, and ultimately boosting conversion rates.