Leave it to Amazon to ring in the holiday shopping season with their recent sales event, Prime Big Deal Days. If you're curious about how it went down and the key takeaways, you're in the right place. Let's dive into our comprehensive recap of the giant Amazon deal event and what it means for the future of online shopping.
Amazon Takes an Early Leap
With the holidays around the corner Amazon made a strategic move by introducing their 48-hour savings event: The Prime Big Deal Days. Spanning October 10-11, they showcased a wealth of deals across diverse categories: from the latest gadgets to cozy home decor.
Did You Know? In 2022 alone, Prime members purchased over 100 million items from Amazon’s selling partners during such events.
Ad Dynamics: While ad spend was up by 23%, ad sales grew 39%, showing a significant improvement in ad performance YoY. Improvements in Quartile’s algorithms led to a 13% ROAS increase YoY.
Prime Members: The Front-Row Audience
Reserved exclusively for Amazon Prime members, the event wasn’t just a shopping spree; it was an early-stage platform for sellers to highlight their prime offerings. We’re all set to spotlight significant trends and KPIs using valuable data insights from Quartile during this event. These insights are not just data points but catalysts that will steer our predictions for the rest of the year.
Empowering Insights with Amazon Marketing Cloud (AMC)
To delve deeper into consumer behavior, Quartile utilized the Amazon Marketing Cloud (AMC). The comprehensive analysis offered a clear view of audience behavior, the impact of Amazon Ads on brand metrics, and the advantages of a multifaceted media approach.
Key Takeaways from AMC:
- New-to-Brand (NTB) Analysis: During the event, Quartile examined the sales metrics for NTB customers. The sales event showcased the potential to tap into a broader audience. On average, clients witnessed a 61% surge in new-to-brand sales.
- Subscribe and Save: The date served as a key opportunity for brands to foster customer loyalty. Clients employing AMC saw a 48% uptick in "Subscribe and Save" enrollments compared to 2022's Prime Deals. However, it's essential to consider that some customers might only enroll to availability of the discount and could potentially opt out later.
Big Deal Days at Walmart as well
Amazon wasn't the sole retailer offering special promotions. Walmart rolled out their own sales event named Walmart+ Week.
Ad Dynamics:
- The ad spend mirrored Amazon's with a surge of 34% compared to the previous year.
- Conversions saw a slightly higher uptick, registering a 36% increase.
- Cost per click, a crucial metric, maintained consistency, showing a modest 2% YoY fluctuation.
One particular element that piqued our analysts' interest was the average order value (AOV). In contrast to 2022's AOV of $23.16, this year it stood at $17.10, suggesting a preference for lower-priced items this holiday season.
Future Shopping Forecasts
According to Adobe’s recent study, online holiday sales pulse is racing with projections touching $221.8 billion, a 4.8% YoY growth. Based on their sample of over 1,000 U.S. consumers, it was unveiled that almost half of them are prepping to start their holiday shopping this October.
Cyber Week Alert: Brace yourselves, as Cyber Week promises to be the hotspot for discounts, expected to contribute $37.2 billion to online holiday sales, marking a 5.4% YoY growth according to Adobe.
Book a demo or speak to your Customer Strategy Manager to learn how you can ignite your holiday sales and prepare for the next deals event.
