Turning Prime Day Momentum into Holiday Season Success

To help you navigate these opportunities, Monks teamed up with Pacvue to provide an in-depth analysis of Prime Day performance. By breaking down key metrics and trends, our goal is to provide insights that can refine your strategies and enhance your advertising campaigns as we head into the busiest shopping season of the year. 

During Prime Day 2024, our partner Pacvue collected data and insights into its advertisers' behavior and performance, including ad spend, cost-per-click, ROAS, conversion rates, and more, from thousands of Amazon advertisers in the United States, spanning every major category and brand size. Here's what we've learned from it. 

The predictable yet strategic nature of Prime Day. 

This year’s Prime Day played out much as expected, with predictable trends like higher CPCs, consistent shopping behavior, and a focus on mobile and personalization. While this predictability might seem mundane, it can be advantageous for prepared brands. Even in a predictable event, brands need to be strategic to stand out. 

FOMO drives last-minute purchases. While Day 1 sales were initially higher, Day 2 experienced a late surge in last-minute purchases driven by FOMO. This late-day surge is typical for Prime Day and presents an opportunity for strategic advertising. It’s beneficial for brands to reserve some ad budget for the final hours of any shopping event to capture these last-minute consumers.

Market leaders face growing challenges. Market leaders are finding it harder to retain and grow market share as the “Amazon formula” becomes widely understood. Lesser-known brands are entering the market with high-quality content, making it essential for big-name brands to not only rely on their legacy but also invest in premium content to stay competitive.

“As consumers become more price-sensitive, a recognizable brand name is no longer enough. Consumers are opting for copycat products that are 15% cheaper. Big-name brands must pair their legacy with high-quality content to retain their hold as the market leader," adds Matthew Boardman, Director of Content. 

Riding the halo effect into the holidays. 

Prime Day’s “halo effect” ensures that increased visibility and sales don’t end with the event. Categories like electronics (61% sales boost) and small kitchen appliances (76% surge) are likely to maintain their strong performance into the holiday season. But this impact isn’t limited to traditional holiday items—back-to-school spending spiked by 216%, demonstrating how early promotions can sustain interest and drive continued engagement in specific categories.

“Even if you’re not selling traditional back-to-school items, this season is a golden opportunity. Parents are in shopping mode, and there’s a halo effect across categories like household goods and apparel,” says Holly Johnson, Senior Advertising Manager. 

Rising Amazon DSP ad spend reflects shifting strategies. 

During Prime Day, Amazon DSP ad spend saw a 39% YoY increase, underscoring its growing role in product discovery and customer acquisition. However, despite a 135.4% spike in DSP ad spend leading up to Prime Day—aimed at capturing more new-to-brand (NTB) sales—key metrics like eCPM (effective cost per mile) and ATCR (add-to-cart rate) declined. This suggests that while DSP ads are attracting more attention, their cost-effectiveness and conversion efficiency are diminishing, pointing to a need for more refined targeting and optimized ad placements. 

"Expect more brands to incorporate lead-out deals for PD2 and T11,” advises Wyatt Burley, Senior Advertising Manager. “Combining AMC and DSP data from a promo period can be highly profitable for retargeting consumers who almost purchased. These consumers represent low-hanging fruit that only DSP/AMC users can effectively target.”

Amazon DSP is particularly valuable during seasonal events like back-to-school due to its ability to target in-market and lifestyle audiences. Brands should enhance their DSP creatives with lifestyle imagery and refreshed messaging to better engage consumers. Retargeting campaigns after Prime Day allow brands to reach a pool of already engaged consumers who are likely to be in the market for back-to-school shopping. 

Cross-selling is another effective strategy during these periods. For example, brands selling related products can use Amazon DSP to retarget consumers who recently purchased one item but not the other. This approach not only drives incremental sales but also strengthens brand loyalty. 

“By using DSP to retarget consumers with complementary products, like pencil boxes for those who bought pencils, brands can effectively increase basket size and reinforce customer relationships,” notes Mckay Elliott, Advertising Manager. 

Conversion rates reveal opportunities for strategic improvement. 

While Prime Day delivered strong sales, conversion rates revealed some challenges that brands need to address. For instance, the automotive category saw a 35.4% increase in conversions, likely driven by stable CPCs, but the Toys & Games category struggled with declining ROAS. As the holiday shopping season heats up, optimizing for conversion will be key to turning clicks into sales. Brands must focus on enhancing their ad creatives, sharpening targeting strategies, and improving the overall user experience on Amazon product pages.

“CPCs will rise across multiple categories during sales events, whether your brand is participating or not. Your costs will increase even if you’re not actively reaping the benefits so strategic refinement is vital,” says Tara Lynne Ferguson, Director of Commerce Advertising. 

Consumer behavior trends that are shaping the future.

Prime Day 2024 highlighted several trends in consumer behavior that brands should consider as they plan for the holiday season: 

Mobile shopping is on the rise. With 49.2% of Prime Day purchases made on mobile devices, brands must optimize their online presence for mobile users. This includes creating a seamless shopping experience across brand stores, creative assets, websites, and landing pages—efforts that can significantly boost conversions. 

"Brands that prioritized mobile optimization and had a well-planned SEO strategy saw the best results. Those that diversified their deals across their catalog rather than focusing on a few specific items were better positioned to navigate the volatility of deal placements and timing," says Johnathon Braga, Senior Advertising Manager

Personalization drives engagement. Today’s consumers expect personalized shopping experiences tailored to their preferences. Brands that offer customized deals and engaging content, such as lifestyle images and Sponsored Brand Videos, can better connect with consumers and showcase their products more effectively. 

“Leveraging AMC data to understand purchasing behavior allows brands to provide customized deals and recommendations that enhance the shopping experience and significantly boost conversion rates,” says Alyssa Schafer, ​​Retail Media Account Manager at Pacvue.

The growing impact of social media and influencers. Both continue to play a significant role in shaping consumer decisions. Brands can collaborate with influencers, host Amazon Live sessions, and create engaging campaigns to reach wider audiences. Promoting these efforts on Amazon brand stores and landing pages can further amplify their impact. 

“Consumers are getting savvier about what they truly ‘need’ and what’s a genuine ‘deal.’ With wallets not growing at the same rate as the economy, brands need to prepare for a more selective shopper this holiday season,” notes Catherine Sherwood, Associate Director of Commerce Account Management.

Prime Day as a springboard for holiday success.

Prime Day offers critical insights for refining strategies as we approach subsequent sales events like Black Friday and Cyber Monday (BFCM). The data helps brands identify what worked and what didn’t, enabling brands to refine their promotional strategies for seasonal holidays and shopping periods.

"While BFCM is a longer event, the insights from Prime Day guide how brands should adjust their lead-in and lead-out strategies. Onsite ad targeting and strategies can be repurposed to maximize the impact during these shopping events," says Alyssa Schafer, ​​Retail Media Account Manager at Pacvue.

As the holiday season approaches, brands must analyze which products performed well during Prime Day, fine-tune ad targeting, and ensure product listings are optimized for search. For instance, categories like Toys & Games, which saw a 191.4% YoY increase in ad spend during Prime Day, are likely to continue driving significant revenue during the holidays. Brands should consider doubling down on promotions in these high-performing categories and leveraging advanced analytics to sharpen their strategies. 

The lasting gift of Prime Day. 

Prime Day 2024 may have been predictable, but this predictability highlights the need for strategic preparation. The data and trends from Prime Day are a lasting gift that provides valuable insights as we approach the busiest shopping season of the year. The halo effect, combined with a deep understanding of consumer behavior and spending patterns, equips brands to turn their Prime Day success into sustained growth through the end of the year and beyond. 

Building on Prime Day’s success for Q4. 

Ready for more? Contact us for tailored advice to keep the momentum going.