Strategic Amazon Ad Spend for Major Sales Events vs. Holidays

In the competitive world of e-Commerce, timing is everything, especially when it comes to advertising. For brands selling on Amazon, understanding when to allocate budget and maximize returns on advertising spend (ROAS) is crucial. 

Interestingly, not all shopping events are created equal. While holidays like Valentine's Day, Mother's Day, and Christmas may seem like the prime moments for increased ad spend, data shows that major sales events like Prime Day, Black Friday, and Cyber Monday often deliver higher returns for advertisers.

In this article, we will explore the differences between major sales events and holidays in terms of Amazon ad spend and performance, and offer strategies for optimizing your campaigns to ensure you’re investing at the right times. The data source of this article is from Jungle Scout’s 2024 Seasonal Amazon Advertising Report.

Why Major Sales Events Deliver Higher ROAS

Sales events like Prime Day and Black Friday are highly anticipated by consumers, who are often seeking deals and discounts on a wide range of products. These events are marked by a surge in demand, not just for giftable items but for everything from electronics to everyday essentials. In contrast, holidays like Valentine's Day, Halloween, and Christmas tend to drive more targeted consumer behavior, with shoppers looking for gifts or holiday-themed items.

Data from 2023 reveals that ad campaigns during major sales events produced up to 39% higher returns than holiday campaigns. This is likely because during sales events, more consumers are ready to purchase, driving higher conversion rates and making each ad dollar go further. Additionally, during these events, shoppers are often more focused on securing deals, meaning they are more likely to respond to price promotions and discounts.

How Ad Spend Patterns Differ

The patterns of ad spend between sales events and holidays vary significantly. For gifting holidays such as Valentine's Day, Mother's Day, and Father's Day, ad spend per campaign typically peaks about one week before the event, as consumers begin to prepare their purchases. However, the nature of these holidays means the audience is somewhat limited to shoppers searching for specific gifts, which can restrict the broader appeal of advertising campaigns.

On the other hand, major sales events like Prime Day, Black Friday, and Cyber Monday see a rapid surge in ad spend and consumer interest on the first day of the sale. For instance, during Prime Day 2023, ad spend increased by 279% compared to the previous days, with returns peaking on the first day of the sale. For Black Friday and Cyber Monday, advertisers saw a 73% jump in ad spend, driven by aggressive promotions and competitive pricing across all product categories.

Q4: The Amazon Advertising Goldmine

The fourth quarter of the year, encompassing both Black Friday and the holiday season, is the undisputed peak for e-Commerce and advertising spend on Amazon. In 2023, Q4 accounted for more than one-third of total annual ad spend on Amazon, with significant increases every weekend in December, particularly on "Super Saturday" (December 17). This spending surge is driven by the holiday shopping rush, which begins earlier every year and is fueled by sales events that offer steep discounts.

However, the data also shows that ad performance peaks well before the final shopping days. In 2023, ROAS for holiday campaigns peaked around December 11, two weeks before Christmas, as shoppers completed most of their purchases ahead of time to avoid last-minute shipping delays. This means advertisers need to plan their spend carefully to ensure they are capitalizing on the best windows for consumer engagement.

Key Strategies for Allocating Your Ad Budget

To ensure your ad spend is being used effectively during both major sales events and holidays, consider the following strategies:

• Front-load your ad budget for sales events. Since consumer interest peaks on the first day of major sales events, it’s critical to have a strong ad presence when shoppers are actively seeking deals. Invest heavily in the first 24-48 hours of events like Prime Day and Black Friday to capture maximum conversions.
• Time holiday campaigns wisely. For holidays like Valentine's Day or Christmas, aim to ramp up ad spend about a week before the event, as this is when consumer interest starts to increase. However, be mindful that the closer you get to the holiday itself, the more competition and higher CPC you’ll face.
• Monitor and adjust bids in real-time. The cost-per-click (CPC) on Amazon can fluctuate significantly during sales events and holidays. For example, during Black Friday, CPC for Sponsored Display campaigns increased by 25%, meaning advertisers need to keep a close eye on performance and adjust bids accordingly to maintain profitability.
• Focus on high-converting products with promotional pricing. During both sales events and holidays, shoppers are more likely to convert when they see discounts and deals. Use this opportunity to promote high-converting products with special offers to boost ad performance.
• Target competitors and branded keywords. During sales events, it's a good idea to target your competitors' branded keywords to attract customers who may be comparison shopping. After the event, increase bids on your own branded keywords to capture shoppers returning to make final purchases.

Conclusion

Major sales events like Prime Day, Black Friday, and Cyber Monday present valuable opportunities for Amazon advertisers to boost returns, often yielding higher ROAS than traditional holidays. However, success hinges on being well-prepared for these events, understanding shifts in consumer behavior, and adjusting ad spend strategies accordingly.

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