September 14, 2023
Amazon recently announced they are doing another October Prime Day this year. We’ve talked about the ‘Halo Effect’ Amazon Prime Day brings for a few years now and in the current economic climate we’re predicting this could be the biggest prime day yet, as customers are more promotion led than ever as they feel the pinch.
In July’s Prime Day it’s reported that product sales increased 99% within the first 24 hours of Amazon’s Prime Day. By midday on day two of the event, participating retailers saw a further up to 77% compared to the day before the event.
“Prime Day is always a major shopping event, but this year it has been an early indicator for holiday shopping amidst high inflation and rising interest rates that have consumers more cautious of their spending,” says Michael Greene, senior vice president of global vertical strategy at Criteo.
According to a Kantar and Amazon Ads study, 71% of shoppers learn about new brands leading up to Prime Day, and 75% of shoppers are likely to purchase a product during Prime Day that they discovered during the lead-up to the event. Given the excitement around Prime Day, the event can be an excellent chance for your brand to connect with highly engaged new and existing customers.
However, as we’ve mentioned before the event isn't just for those advertising or selling directly on Amazon. The Amazon Prime Halo effect has the ability to increase customers' intent to purchase leading to an average 14% uplift in CvR for European retailers in 2021 according to a study by Criteo. Criteo also reported that Prime Day’s halo effect was greater in 2023 than in 2022, when Criteo tracked a 30% increase over the baseline for retailers that also offered specific deals around Prime Day.
We’ve witnessed these results first hand when testing the theory with our footwear client, Moda in Pelle who saw a whopping 70% increase in revenue and 57% increase in ROAS, so we thought we’d share our top tips for getting the most out of this year's sales event!
- Ramp Up your spend and visibility. Review your daily budgets in the run up to Prime Day, you may start to spot campaigns becoming limited by budget as search demand in your category increases, and if it’s performing well and you have the budget to, increase it! It’ll help to capture a larger share of the increased traffic and potential conversions.
- Shout about your deals. Add a merchant promotion for your discount code and create a scheduled promotion extension across your search campaigns. If possible, offer next day delivery / free delivery across these 2 days. This will help you to compete against the delivery offering Amazon has in place as standard.
- Create Urgency. Update your ad copy to showcase your promotion, we’ve had great success using countdown ads to create urgency to buy now.
- Get your shopping feed up to scratch. Shopping ads drive 85% of all clicks on Google Ads and search queries are 100% matched with product titles and descriptions so you can’t afford to not have a fully optimised feed. Make sure that all relevant attributes are completed and that your titles and descriptions are populated with your attributes and top keywords.
- Utilise Seasonality Adjustments. Remember to let Google know of anticipated uplifts in conversion rates through seasonality adjustments to support the smart bidding algorithm.
If you're looking for a helping hand to ensure your Paid Marketing efforts are in order throughout Peak Season, get in touch with our team using the button below!
