Amazon once again broke records with its signature Prime Day event, producing the single largest sales day in company history. To capitalize on the huge influx of demand, Amazon vendors and sellers relied heavily on Amazon’s extensive suite of advertising options to get in front of shoppers.
Here we’ll unpack some of the key trends observed using anonymized results from the more than $400 million in annual Amazon ad spend under management at Tinuiti. All figures are based on sets of same-store advertisers that remained active during the time period studied.
Sponsored Products Spend Growth Soars 53% Compared to Last Prime Day
Looking at the growth of Ad Console formats, Sponsored Products led the pack with a 53% increase in spend compared to Prime Day 2022, driven by a 41% jump in clicks and 9% increase in CPC. Sponsored Brands and Sponsored Display also grew substantially, with spend on the two formats up 49% and 37%, respectively.
This is a reversal of how these formats fared against one another in terms of year-over-year spend growth during last year’s event, when Sponsored Display led the pack, followed by Sponsored Brands and then Sponsored Products. Across all three formats, the cost of ad clicks increased more in 2023 than in 2022.
Amazon Demand-side Platform (DSP) advertisers started ramping up ad spend well in advance of the event to help build product awareness and consideration both on and off Amazon, with steady growth in daily ad spend starting in early June. DSP spend peaked during Prime Day, with advertisers spending more than twice what they had on the first day of June for each of the two days of the event.
Looking at the results driven with increased ad dollars during Prime Day 2023, sales attributed to Sponsored Products increased 39% compared to last year’s event. As such, sales per click growth did lag cost per click growth, in contrast to the last several quarters and last year’s event, when sales…
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