In the past, Prime Day served to increase demand during an otherwise uneventful buying season, but in 2020 Prime Day is so much more. This year Prime Day is - Prime Day, Back to (in person) School Shopping, a prelude to Cyber 5, and the beginning of the retail holiday season.
That is a lot to pin on an event that has just been officially announced on October 13th and 14th.
With so much uncertainty in the world and around this event, let’s focus on a few things we know for sure:
Prime Day 2020 will see an increase of traffic on a wider range of products than in a normal year.
In previous years, 49% of Prime Day shoppers said they were planning to use the event to shop for the holidays. However as Prime Day is now nearly 3 months later than it was in 2019, retailers should expect that percentage to increase. An increase in gift focused shopping will lead to a shift in the type of product categories that traditionally fare well on Prime Day.
In a typical year Electronics are the biggest seller but in 2020 I would expect some of the lower categories like Toys and Games along with Beauty & Personal Care to move up the ranks as shoppers are buying less for themselves and more for others.
RankBrandPurchasesYoY Growth1Electronics4.43M–2Home & Kitchen3.72M+15%3Health & Household2.80M+28%4Amazon Devices2.789M+26%5Beauty & Personal Care2.05M+27%6Clothing, Shoes & Jewelry1.73M-8%7Sports & Outdoors1.56M-4%8Tools & Home Improvement1.52M+19%9Toys & Games1.16M+18%10Grocery & Gourmet Food897K+26%
Source: Hitwise, US. www.amazon.com. July 15-16 2019 vs. July 16-17 2018.
Tip - To ensure you are prepared for the traffic increase on a wider variety of products, use Marin’s Amazon Keyword Expansion feature to ensure complete coverage prior to Prime Day then be sure to use again after the event to bulk up your targeting for the rest of 2020 shopping or to add negative keywords to increase efficiency of your campaigns.
Prime Day Success is Not Measured in Same Day ROAS
Prime Day will obviously increase sales for many advertisers, however this year more marketers are moving away from measuring success in terms of ROAS. The unique timing of the event is resulting in many brands willing to target a lower ROAS in exchange for expanding top of funnel reach in preparation for Cyber 5.
Tip - Amazon suggests increasing bids significantly (they recommend up to 2x) in order to remain competitive during Prime Day. This can be a labor intensive process in the Amazon Console and requires you to manually execute the adjustments. In Marin you can easily achieve this result with a few clicks and reverting to the previous level is even easier.
Prime Day this year will not be the usual “Buy in July” but it will be seen as the official start of the 2020 Holiday Buying Season. Take advantage of this timing to look beyond Prime Day performance and instead use it as a building block for your future Cyber 5 and Holiday activities.