Prime Day is Amazon's "biggest event ever," featuring more than 100,000 deals worldwide and is exclusive for Prime members. Although it officially starts tomorrow, consumers can be expected to swarm the site looking for deals starting at 9pm ET tonight. For digital advertisers like us who use Amazon Marketing Services, or AMS—Amazon’s self-service vendor marketing platform—this is a huge day for sales. According to Amazon’s results from last year, AMS campaigns saw a 125% to 175% lift in ad attributed sales on Prime Day 2016 compared to the previous day. Mobile app orders were twice the numbers that they were the year before. Members purchased over 200,000 headphones, more than two million toys, more than one million pairs of shoes, and more than 90,000 television sets. Not surprisingly, marketers are turning to AMS to drive retail sales on Amazon and, by preparing campaigns and products effectively for Prime Day. We wanted to share a few helpful hints from Amazon as well as our suggestions on how to run a successful Prime Day for your brand.
Tips from Amazon
Amazon has provided a “how-to” for brands to maximize sales opportunities and maintain advertising coverage. Here are some of their suggestions:
Recommendations from iProspect
Monitor daily budgets. You can expect an influx of shoppers on Prime Day and the influx of activity will likely drain campaign budgets at a faster rate. Be sure to check campaign activity repeatedly throughout the day and increase daily budget caps should your campaign exhaust its spend. Inform your clients of the potential irregular spend pacing that will likely occur.
Keep optimizing towards increased sales. Increase keyword bids if impressions are low to maximize your reach. You can monitor impressions and CTR to ensure that campaigns remain competitive. If a keyword is performing well, consider increasing the bid to help you maintain or win additional impressions on that keyword. If a campaign is promoting enough ASINs, you can pause ASINs that are underperforming. (Remember that sales data can take up to 3 days to update and campaign edits may take 1 hour to update!)
Test campaign types and keyword opportunities. Optimization opportunities on AMS are limited but, due to its irregularly high traffic potential, Prime Day can be used to test which campaign types or keywords most effectively drive sales. Remember, results will vary across industries and price points. For example, Amazon has a new “Deals On” PDA feature, allowing advertisers to promote lightening deals and savings and sales deals. These Deals on PDA placements are the same as traditional PDA placements, but you have the ability to increase reach and sales without submitting any type of creative. Prime day would be an ideal time to test how deals on PDA perform, as traffic and perchance intent is higher than average.
Use Prime Day data as a baseline for holiday and competitive insights. Amazon compares the reach of Prime Day to its other major holidays, including Christmas, Black Friday, and Back to School. Advertisers can use Prime Day metrics as a reference point when planning holiday season campaigns and strategies on AMS.