Digital MarketingThe growth of Amazon Advertising and how it’s linked to Prime Day 2019

The growth of Amazon Advertising and how it’s linked to Prime Day 2019

Kenshoo found that advertisers spent 3.8X on this year's Prime Day compared to any other day in July, but they also generated 5.8x their usual revenue.

Amazon’s Prime Day wasn’t successful only for retailers but also for advertisers who tapped into the online shopping event’s success. Here are the key stats you need to know and what to do next.

Amazon’s Prime Day was their ‘biggest shopping event’ up to now with members buying more than 175 million items worldwide in two days. Retailers saw a big increase in their sales and even other sites benefited from the online shopping spree.

Key stats include:

  • Prime members worldwide saved more than one billion dollars throughout Prime Day.
  • Members in 18 countries shopped – double the number since the first Prime Day five years ago.
  • A record number of Prime members shopped during Prime Day in the U.S.
  • Amazon welcomed more new Prime members on July 15 than any previous day, and almost as many on July 16 – making these the two biggest days ever for member signups.

According to Jeff Bezos, Amazon Founder and CEO:

“Members purchased millions of Alexa-enabled devices, received tens of millions of dollars in savings by shopping from Whole Foods Market and bought more than $2 billion of products from independent small and medium-sized businesses. Huge thank you to Amazonians everywhere who made this day possible for customers.”

Except for the sales, there was also additional revenue coming from the advertisers who wanted to benefit from the increased interest in Amazon’s site these two days.

In fact, advertisers were encouraged to increase their spend to make the most of the big audience that could turn into potential customers for them.

The growth of Amazon advertising

Amazon’s advertising business has become very profitable. There is annual revenue of $10 billion from selling ads and there is an estimate of further growth.

amazon's revenue from advertising and other servicees
Source: Bloomberg

In fact, Amazon is currently the third-largest digital advertising platform in the US after Google and Facebook. According to eMarketer, Amazon will claim 8.8% of US digital spend in 2019, which is a great increase from 6.8% in 2018.

There are many ways to make the most of Amazon advertising especially on busy days like Prime Day.

The idea of using sponsored posts, display ads and even video ads can help advertisers promote their products even when they are not selling them directly on Amazon.

Amazon ads can also help you gain valuable insights on consumer habits and the best ways to approach your prospective customers through the right messaging.

It’s about learning what consumers want from your brand or any similar product to deliver the right ad at the most appropriate time.

This is something that can be very useful during busier periods such as Prime Day.

Advertising success during Prime Day

Prime Day allowed advertisers to benefit from a busy shopping event that brought them closer to a new audience.

Kenshsoo looked at their ecommerce performance data to find out how advertisers reacted to Prime Day.

The findings were very interesting:

  • Advertisers spent 3.8X on Prime Day compared to any other day in July.
  • What’s more interesting is that they also generated 5.8x of their usual revenue on any other day in July
  • Kenshoo advertisers who joined Prime Day last year spent 2x the budget on the first day of Prime Day in 2019
  • The most popular categories for increased spending were Toys & Games, Health & Beauty, Computer & Electronics, and CPG
  • When looking at the spending, advertisers spent 6.8x in Toys & Games ads compared to last year, 3.1x in Health & Beauty and 2x in Computer & Electronics

What we can learn is that there is a growing interest from advertisers to tap into Amazon’s Prime Day. The success of the event will spark even more interest in the future, which comes to the importance of planning ahead and setting up an advertising strategy that will beat the competition.

It’s also useful to look at the specific categories that saw an even greater growth from last year to explore how you want to benefit from big shopping events in the future.

Opportunities with Amazon advertising

Advertising on Amazon can help you improve brand awareness but also reduce the sales cycle.

From finding out more about your target audience to making your funnel shorter through the right actions, the opportunities are numerous and diverse.

As the third biggest ad platform in the US, it is becoming easier to justify your ROI by creating ads that speak to your target audience.

Amazon’s ambitious plans for its advertising model and the estimates for a bigger interest in it, and thus revenue, indicate that paid search can facilitate the shopping decisions both for consumers but also for retailers who want to promote their products.

Prime Day seemed like the perfect event to increase the ad spend so the next challenge is to use the learnings from the two busy days to set up a long-lasting plan that will bring even greater success.

Subscribe to get your daily business insights

Whitepapers

US Mobile Streaming Behavior

Whitepaper | Mobile US Mobile Streaming Behavior

5y

US Mobile Streaming Behavior

Streaming has become a staple of US media-viewing habits. Streaming video, however, still comes with a variety of pesky frustrations that viewers are ...

View resource
Winning the Data Game: Digital Analytics Tactics for Media Groups

Whitepaper | Analyzing Customer Data Winning the Data Game: Digital Analytics Tactics for Media Groups

5y

Winning the Data Game: Digital Analytics Tactics f...

Data is the lifeblood of so many companies today. You need more of it, all of which at higher quality, and all the meanwhile being compliant with data...

View resource
Learning to win the talent war: how digital marketing can develop its people

Whitepaper | Digital Marketing Learning to win the talent war: how digital marketing can develop its people

2y

Learning to win the talent war: how digital market...

This report documents the findings of a Fireside chat held by ClickZ in the first quarter of 2022. It provides expert insight on how companies can ret...

View resource
Engagement To Empowerment - Winning in Today's Experience Economy

Report | Digital Transformation Engagement To Empowerment - Winning in Today's Experience Economy

4w

Engagement To Empowerment - Winning in Today's Exp...

Customers decide fast, influenced by only 2.5 touchpoints – globally! Make sure your brand shines in those critical moments. Read More...

View resource