Industry Report
Secrets of Prime Day 2024: Insights to Skyrocket Your Amazon Growth
Amazon Prime Day 2024 had a noticeable but reduced impact on sales compared to 2023. Although traffic surged similarly to the previous year, declining conversion rates correlated with less direct sales growth. And, despite lower ad costs this year, overall profitability and margins declined, indicating that brands need to pay closer attention to their retail media investments, promotions and product mix to improve the profitability of Prime Day for their business.
Download this comprehensive Prime Day report for exclusive insights into which categories outperformed the rest, how ad spend affected sales, and the halo effect brands saw following retail’s hottest event of the summer.
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3 key takeaways
- Diminished sales impact: While Prime Day 2024 saw high traffic similar to the previous year, conversion rates fell, leading to reduced direct sales growth despite significant ad spending.
- High ad spend with lower ROAS: Brands increased ad spending, particularly on Sponsored Display ads, but experienced lower return on ad spend (ROAS) post-Prime Day, with higher discounts driving temporary sales spikes but leading to a sharp decline afterward.
- Inventory and profitability challenges: Significant revenue losses due to out-of-stock issues and declining overall profitability highlight the need for better inventory forecasting, effective ad budgeting, and real-time optimization of retail media strategies.