For Amazon, one of the world’s largest retailers, the last few days represent the reaching of unprecedented milestones including the announcement that 2018’s Cyber Monday was the biggest shopping day in the history of the company. More products were ordered worldwide on the ecommerce giant on Monday than on any other day with customers ordering millions of items more than they did compared to the same day last year, which also broke records.
What this holiday shopping season has proven is that when advertisers invest through Amazon, sales go up. Not only was Cyber Monday the biggest shopping day in the history of Amazon, but it was also the biggest single day of investment in Amazon Advertising for marketers.
Advertising during the key holiday shopping days of Thanksgiving, Black Friday, and Cyber Monday was upwards of 3.5X than the average daily spending during the pre-holiday period of October demonstrating the solid confidence that marketers have with this channel to deliver during the most important time of year.
Even more evidence of marketer faith in Amazon advertising was that Kenshoo clients spent 2.2X on Amazon’s native ads on Cyber Monday than they did on average during this year’s Prime Day summer shopping days.
“As strong as Amazon is at bringing in peak shopping day orders, it’s clear that their investment in building a native ad platform for partner brands to get involved and help drive sales is paying off,” says Margo Kahrose, Kenshoo’s Vice President of Marketing. “The 500+ brands managing their Amazon advertising through Kenshoo have been very pleased with their marketing return this holiday season and their desire is to keep the pedal on the gas in 2019.”
We’re continuing to see the positive return on ad spend that we saw on Black Friday. As we reported a few days ago, Amazon Advertising-driven sales were up 3X on that day. Given the amazing success of Cyber Monday, advertisers will be most certainly be looking to do even more throughout the year—which is why 80% of Amazon advertisers are planning to increase their marketing budgets on the platform in 2019.
And brands want to invest more because of the almost immediate payoff they see. Recently, Kenshoo client Craghoppers—one of Amazon’s Top 50 Sellers Worldwide—increased conversion rates on the site by 40% using Amazon Advertising.
On the heels of 2018’s success, 44% of Amazon advertisers report planning to add automation tools for campaign management in the coming year. As brands discount products and increase budgets to face competition and take advantage of this tremendous opportunity, marketers have a unique challenge in understanding all of the factors that drive Amazon Advertising success.
If you are interested in learning more about how Kenshoo Ecommerce can help you manage your Amazon campaigns please reach out to us for a quick call to discuss how we can help!