Amazon Prime Day advertising review, various indicators and data released

It is learned that recently, Skai, Feedvisor and other institutions have released relevant data on Amazon Prime Day advertising in 2023, including various indicators such as advertising expenditure, sales, click-through rate and CPC, as well as return on investment of various categories.

Advertising expenditure increased significantly, and advertising costs rose steadily

New research from Skai shows that Amazon sellers increased their advertising spending by 409% during Prime Day compared to the 30 days before the event, compared to last year when spending increased by 300%, roughly four times as much.

In terms of year-on-year growth, this year's Prime Day advertising spending increased by 65% ​​year-on-year. It is worth noting that this year's Prime Day spending in the 30 days before has increased by 30% compared to the same period last year. Therefore, Prime Day's two days contributed slightly more than half of the year-on-year spending growth.

Buyer engagement also increased, with Amazon Prime Day ad clicks up 226% and CPC up 58% compared to the previous 30 days. In comparison, last year’s Prime Day saw a 167% increase in clicks and a 50% increase in cost-per-click (CPC) rates.

In terms of advertising costs, Skai data shows that within two days of the event, Amazon's advertising CPC increased by 22% year-on-year, and increased by 14% year-on-year in the first 30 days. In last year's Prime Day, CPC decreased year-on-year.

According to Feedvisor data, during Prime Day 2023, the total advertising cost of sales (ACoS) fell 26.5% compared with the previous year. Despite the fierce competition in the overall advertising landscape, the cost per click (CPC) remained within a controllable range, with a CPC price of $2.32, a year-on-year increase of 38%.

The data from Skai and Feedvisor are based on data from the Amazon seller clients they serve, so there are some deviations, but they are basically consistent with the general trend.

Advertising sales increased significantly, with some categories performing well

U.S. consumer spending levels have recovered as inflation reached its lowest level since August 2020. Overall, ad spend, average order value, and return on ad spend in 2023 all exceed 2022 figures.

Skai data shows that during Prime Day 2023, Amazon advertising sales increased by 486% compared with the previous 30 days. The increase was higher than in 2022. In addition, the average size of consumers' shopping carts increased by 76% compared with 30 days ago, from an average of US$36 in the 30 days before Prime Day to US$61.

As revenue growth outpaced ad spend, overall return on ad spend (ROAS) also increased by 14%. Overall, sellers saw a significant increase in their ad ROI during Prime Day this year, with some categories performing better than others.

Skai data shows that electronics performed the best. In 2023, advertising sales of technology electronics products increased by 114% compared with 30 days ago, and the average order value doubled. Other growing categories include home gardening, beauty and personal care. However, compared with 30 days ago, the return on advertising expenditure in some categories has decreased, including clothing, food, groceries and hobbies.

Feedsivor data also shows that advertising sales of electronic products performed best during Prime Day, followed by home gardening and sports and outdoor activities.

As the industry continues to prepare for Google's plan to deprecate third-party cookies starting next year, more and more brands are adopting retail media promotion. In this regard, Amazon is dominant. In the US $100 billion retail media advertising market, Amazon has a strategic 37%, while Target and Walmart account for 36% of the market share.

Editor✎ Ashley/

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