Why holiday advertising matters.

In 2023, consumers spent over $1.17 trillion globally, with Cyber Week alone accounting for 25% of that total (Salesforce). This highlights just how much shoppers rely on these key days. And with mobile shopping responsible for over half of all online sales and driving 80% of ecommerce growth (Adobe), having the right plan in place can make the difference between average results and record-breaking success. 

Below, our commerce experts outlined four key insights and actionable tips to help your brand stand out throughout the entire T-12 period. 

Maximize visibility and engagement during Amazon’s peak shopping events. 

Visibility is everything during peak shopping periods like T-12. Decorating your Sponsored Ads and Brand Store with festive, holiday-themed banners and images creates visual cohesiveness that aligns your brand with the season while attracting the right shoppers. Additionally, using placement modifiers ensures your ads appear in premium spots during peak times, allowing you to balance driving sales volume with maintaining profitability. It’s important to monitor performance in real time and adjust your strategy accordingly. 

For Sponsored Brands ads, consider refreshing your video content and switching to action-driven, holiday-specific messaging. Simple CTAs like “Shop Our Best Sellers for the Holiday Season” or “Shop Select Styles This Holiday Season” can make a significant difference and drive higher engagement during this period. 

Insights provided by Lillie Flagel, Advertising Manager. 

Start advertising early and maintain momentum for Amazon’s T-12 period. 

Timing is key during Black Friday and Cyber Monday, and starting your campaigns early while maintaining momentum throughout the T-12 period yields stronger results. A front-heavy approach for Sponsored Ads works best since traffic builds throughout November. Allocating a larger portion of your budget early on ensures your ads are visible as shoppers start researching deals ahead of the big event. 

As Cyber 5 approaches, fine-tune your DSP audiences and increase bids on must-win keywords. Focus on optimizing CPCs based on recent performance, but be careful not to overbid. During the event, keep a close eye on your campaigns to make sure your budget lasts through peak shopping hours, but don’t be afraid to invest heavily in these key moments. After Cyber 5, continue retargeting shoppers who didn’t convert during the event and gradually reduce bids as conversions naturally taper off. 

Insights provided by Johnathon Braga, Senior Advertising Manager. 

Tailor messaging and promotions for different shoppers. 

Not all holiday shoppers are the same. Some are premium buyers seeking high-end products, while others are more budget-conscious. Tailoring your messaging to meet the specific needs of each type of shopper, going beyond simple demographics, is vital for success. 

When remarketing, it’s important to differentiate your approach based on whether the customer is familiar with your brand. For existing shoppers, focus on building loyalty, while potential shoppers can be reached through lookalike audiences to expand your reach. Using behavior data allows you to deliver relevant promotions, such as highlighting a new collection that might interest your audience. With Amazon’s lookalike audience feature and AMC data, you can refine your targeting further, finding audience overlaps and optimizing campaigns for better engagement and ROI. Additionally, life events such as new parents seeking convenience or recent movers upgrading their living spaces can play a significant role in purchasing decisions. Aligning your messaging with these life moments allows for more meaningful engagement and conversions during the T-12 period. 

Insights provided by Tara Lynne Ferguson, Director of Commerce Advertising.

Leverage the power of custom audience creation and insights for Amazon brands. 

Custom audiences are one of the most valuable tools for reaching the right shoppers, but the true value lies in understanding your audience’s behavior, not just what products you’re pushing. Knowing where your audience is in the funnel and how they react at different stages helps you target specific behaviors more effectively. For instance, AMC purchase analysis can help determine how long it typically takes for your audience to convert, allowing you to set the right look-back windows for retargeting, especially for cart abandonment or product searches. 

Don’t rely on assumptions. Testing different look-back windows, such as three, five, or seven days, helps identify what works best for your audience. Additionally, keeping an eye on frequency caps and viewability rates is important. While retargeting helps maintain momentum, over-targeting can alienate your shoppers. Leveraging AMC data allows you to lower CPM and maximize returns by focusing on actual behaviors rather than assumptions. 

Insights provided by Wyatt Burley, Senior Advertising Manager.

Don’t leave your holiday season performance up to chance. 

With so much at stake during the T-12 period, having a holistic advertising strategy will help you make the most of the opportunities available. By focusing on custom audiences, optimizing bids, and tailoring your messaging, your brand can better connect more effectively with shoppers and boost performance. For more insights and detailed strategies to navigate Black Friday and Cyber Monday on Amazon, check out the full guide here.

Ready to make the most of Amazon’s T-12 period? 

Our team partners with some of the world’s most innovative brands to fine-tune their Amazon advertising strategy. Through data-driven insights, technology and a team of retail media specialists, we help increase visibility, engage the right audiences, and drive meaningful conversions throughout the holiday season. Whether you’re looking to optimize ad placements or refine audience targeting, we’re here to help you succeed during Black Friday, Cyber Monday, and beyond. Let’s talk about how we can support your holiday sales goals.

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. 

A big win for small and medium-sized businesses.

This year’s Prime Day marked a significant milestone for small and medium-sized businesses, as they emerged as the new power players in the sales landscape. This shift was not a mere coincidence, but actually the result of Amazon’s strategic decision to amplify these businesses by showcasing more deals of their products than ever before.

Today’s consumers, especially younger shoppers, are not just buying products—they’re buying into the values that these products represent. They increasingly focus on aligning their personal values with their purchasing habits and show a preference for brands that reflect their own beliefs and principles. This trend is particularly evident in the growing support for small and medium-sized businesses, as they tend to have more compelling stories and unique products and provide a personal touch that resonates with consumers. These brands often represent entrepreneurship, innovation and local community support, and these values are strongly appreciated by today’s conscious consumers.

As for results, the first day of Prime Day 2023 shattered last year's record, and thus became the single largest sales day on the platform. According to Amazon, Prime members worldwide purchased more than 375 million items, saving over $2.5 billion through deals across the platform. This surge in sales showcases the growing popularity and anticipation of Prime Day among Amazon’s customer base. Furthermore, Numerator revealed that out of more than one million households, approximately 52% had strategically delayed their purchases until Prime Day to take advantage of the sales, which goes to show that many consumers not only engage with, but even plan around the event.

According to Amazon, the top-selling categories were Home, Fashion and Beauty, while Numerator reported that the most popular items included Temptations Cat Treats, Amazon Fire TV Stick, Liquid I.V. Packets, Echo Dot 5, and Blink Outdoor Camera. These items reflect a diverse range of consumer interests and needs, from pet care to home entertainment and health.

Adobe Analytics states that online spending in the United States climbed 6.1% to $12.7 billion, demonstrating the significant economic impact of Prime Day. However, these impressive results fell short of Adobe’s forecast, as they predicted a 9.5% year-over-year (YoY) growth in total online sales in the US. This discrepancy suggests that while Prime Day continues to be a major sales event, there may actually be room for further optimization and growth. 

Helping brands put strategic power behind their Prime Day sales. 

This year’s remarkable results underscore the importance of understanding consumer behavior and strategic planning—rather than a mere reflection of broader market trends, these outcomes are, in fact, the product of innovative strategies and meticulous execution behind the scenes for Amazon sellers.

In the dynamic landscape of Prime Day 2023, our team of commerce experts strategically guided our clients through the complexities of the event. Harnessing Amazon’s innovative features and aligning them with holistic strategies, we were able to tap into the pulse of consumer behavior and drive unprecedented growth for the brands we partner with. Beyond capitalizing on the event, we set out to understand and leverage the unique opportunities that Prime Day presents.

We utilized a lead-out strategy in conjunction with Amazon’s newly introduced Invite-Only “waitlist” feature for Prime Day Deals across many clients. This direct targeting strategy allowed Prime members to identify exclusive deals and request an invite on the products they were interested in prior to the event, essentially prompting them to make purchases ahead of time—a strategy that was designed to not only build momentum and anticipation, but encourage early engagement and sales. Let’s take a look at different categories to see how effective this approach has proven to be. 

• Mattress/Bedding category: One client outsold their forecast by six times through the first day of Prime Day, catapulting their sales rank from #56 to #1 within just a day and a half. This remarkable performance earned them several “Amazon’s Choice” badges, and they are now recognized as “Overall Pick.” 
  
   
• Lifestyle Apparel category: For another client, Prime Day 2023 marked their first participation in the event. They successfully sold through their forecast on the 25 featured products, which had a ripple effect, boosting their entire brand visibility and sales even after Prime Day ended.
  
   
• Beauty category: One client in this category saw a significant +203% YoY increase in sales and a +109% YoY increase in ROAS. This success was driven by a multi-pronged strategy that included creating campaigns that were coupled with promotions and sponsored ads in the lead-up to the event, optimizing bids and launching Amazon posts during Prime Day, and running remarketing ads afterwards.
  
   
• Supplements category: A client in the supplements category witnessed a 50% YoY increase in topline sales numbers and a staggering 396% increase in Brand Store traffic on the first day of Prime Day. Their strong performance within their category was largely due to our strategic use of coupons across ‘Tier 1’ Amazon Standard Identification Numbers (ASINs), which significantly improved clickthrough rates and conversion rates on ads. This strategy not only boosted their sales during the event, but also added 64 new Subscribe and Save customers, setting the stage for continued success after Prime Day.

Drawing from our foundational principles, which have consistently driven success, our team adopted a holistic approach to Prime Day 2023. We tailored our promotional, content, operational and data strategies to each and every brand’s unique needs, ensuring a personalized and effective approach to the event. This blend of strategies allowed us to navigate the complexities of Prime Day while maximizing opportunities for our clients.

Packing up our learnings and taking them to the next big shopping event. 

Prime Day 2023 can be considered a landmark ecommerce event, as it has demonstrated the power of strategic planning, innovative features, and gaining a deep understanding of consumer behavior. The success stories of our clients underscore the potential of Prime Day as a platform for growth and visibility. As we look ahead, these insights will guide our strategies and help us continually adapt to and innovate in the ever-evolving digital marketplace. Whether you’re a small business owner or a global brand, the lessons from Prime Day offer valuable support in navigating the world of ecommerce and maximizing the opportunities that such tentpole events present.