The Orca Pacific Blog

3 Takeaways from Amazon Prime Day 2019

Amazon Prime Day 2019As Tuesday came to a close, so did the online shopping extravaganza that is Amazon Prime Day. After 48 hours of deals, several notable takeaways surfaced. We consulted with our expert staff to narrow down the top three.

Top Three Takeaways from Amazon Prime Day 2019

  1. The Bar is Raised for Prime Day Deals
  2. Long-Term Advertising Pays Off
  3. Prime Day is Becoming Massive for Amazon and Brands Alike

1. The Bar Is Raised for Prime Day Deals

Amazon is becoming more strategic about the deals they feature on Prime Day, raising the threshold for products they merchandise. Business Manager and former Amazonian, Karleigh Roberts commented,

Karleigh Roberts“Last year, most brands were able to run deals on Prime Day through the Best Deals page. They could submit a promotion and, if approved, feature the deal for up to two weeks without being limited by the number of products Amazon would feature. This year, Amazon did away with the crowded page, instead focusing on deals with higher quality requirements based on reviews, demand, price, and other factors. Consequently, these deals went mostly to large enterprise brands in the form of Lightning Deals, Deals of the Day, Coupons and Prime Day Launch Deals. We expect to see a similar trend during other high-traffic events.”

But Amazon isn’t only reevaluating which deals are run, they are also experimenting with how those deals are presented to consumers. Roberts continues, “With the shift away from Best Deals, we can expect other new forms of deals to become popular like Live Deals featuring video and Prime Product Launch deals featuring new products released in accordance with the holiday. Additionally, advertising will become more important for brands with products that are ineligible to feature a deal but still want to capitalize on the enormous increase in traffic.”

2. Long-Term Advertising Pays Off

The brands that won big over the holiday were those with established advertising momentum. Advertising Manager, Lars Lee, explains,

Lars Lee“When brands use prolonged advertising campaigns to sustain sales momentum for their products, Amazon’s algorithm deems those products as highly relevant. During high-traffic periods like Prime Day, that relevance acts as a floatation device to keep products visible as customers flood into the marketplace. Our clients with these established campaigns saw massive sales increases over Prime Day while avoiding the huge spikes in CPC and ACoS that have become characteristic of the holiday.”

However, Lee notes that a long-term advertising strategy cannot do the trick alone. He continues, “Just because a product has established momentum does not mean that they shouldn’t be increasing bids to capitalize on Prime Day traffic. This year, we found a sweet spot of 3-4x normal minimum bids to keep our clients competitive and drive massive sales.”

3. Prime Day is Becoming Massive for Amazon and Brands Alike

In their post-Prime Day news release, Amazon announced that the most recent Prime Day was the “largest shopping event in Amazon history” and that overall sales surpassed the previous years’ Black Friday and Cyber Monday combined.

Director of Client Strategy, Kyle Olson, recounted the overwhelming success,

Kyle Olson“Amazon Prime Day beat expectations and set records yet again this year. Even brands who took a more conservative approach saw a significant sales lift as a result of the tide of traffic that flowed through the site. Yet, the biggest gains went to those who aggressively planned from a promotional and advertising perspective. Prime Day continues to be a huge draw for customers and Amazon, which means that brands should make Prime Day a key part of their promotional calendars next year if they haven’t already.”

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