As Amazon Prime Big Deal Days 2024 approaches on October 8-9, brands are now officially at the starting gate for Q4.

Reflecting on insights from the July Prime Day and previous Prime Big Deal Days, it’s clear that brands must navigate rising competition, increasing CPCs, and evolving consumer behaviors. At Direct Agents, our strategies have enabled partner brands to think more Omni-Channel during sales events. 

In today’s article, we’ll explore key areas for investment—Amazon DSP, Social including Influencer and UGC, and Connected TV (CTV)—while maintaining a balance between cost-efficiency and maximizing ROI in an increasingly competitive environment.

Key Learnings from Big Deal Days 2023

Last year’s Prime Big Deal Days revealed key insights into shopper demographics and purchasing patterns that can shape strategies for 2024. The typical shopper remained a high-income suburban female, aged 35-44, with 95% already aware of the event before visiting Amazon, and 85% motivated specifically by the deals. The average order size of $53.47, while slightly lower than July’s Prime Day, reflected strong participation with a focus on low-ticket, high-frequency purchases. Over 60% of items bought were priced under $20, though premium categories like electronics also saw significant interest in higher-priced items.

Beauty, apparel, and electronics stood out as the top categories, as shoppers balanced affordability with strategic high-value purchases, all within an increasingly competitive promotional environment. Brands last year jostled for consumer attention through aggressive discounting and deeper promotions. This competitive intensity is likely to escalate in 2024, demanding that brands refine their strategies to stay cost-efficient. With rising CPCs challenging profitability in high-demand segments like apparel, electronics, and beauty, brands will need to optimize their visibility and offer compelling deals to maintain their competitive edge.

Navigating Rising Competition and Increasing CPCs

One of the key challenges facing brands in 2024 is the upward trajectory of cost-per-click (CPC) on Amazon’s Sponsored Ads platform. As the number of sellers and advertisers on Amazon grows, competition for prime ad placements has driven CPCs to all-time highs, particularly in high-traffic categories. According to recent estimates, the average CPC in some product categories has increased by over 30% compared to the previous year.

For brands looking to compete, the days of relying solely on traditional Sponsored Products and Sponsored Brands to drive traffic are over. Now more than ever, a multi-faceted strategy is required to counter rising costs and drive low cost demand. 

Here are some key tactics to mitigate the impact of increasing CPCs:

1. Leverage Amazon DSP for Traffic Generation

DSP has come a long way in only a few short years with enhanced measurement via AMC, and offers a powerful solution to escalating CPCs by allowing brands to drive external traffic back to their Amazon listings at lower costs. Unlike Sponsored Ads, DSP allows for more granular audience targeting based on shopper behavior, interests, and past purchases both on and off Amazon. Brands can deploy retargeting campaigns, re-engage cart abandoners, or introduce products to lookalike audiences who have shown interest in related categories.

Using DSP also offers greater control over spend allocation, enabling brands to drive qualified traffic more cost-effectively by focusing on high-value shopper segments. Agencies should advise brands to integrate DSP into their Prime Big Deal Days strategy as a complementary tactic to traditional ad campaigns, creating a wider funnel of potential customers without relying solely on costly CPC-driven tactics.

2. Expand into Connected TV (CTV) for Household Awareness 

Another critical avenue for generating cost-effective awareness is through Connected TV (CTV). As consumers shift from traditional TV to streaming platforms, CTV provides a non-intrusive way to engage large audiences, especially leading up to high-traffic events like Prime Big Deal Days. Amazon’s Fire TV and other streaming platforms offer brands the opportunity to capture attention through video ads that introduce product categories, highlight promotional offers, and drive engagement.

To measure the effectiveness of CTV ads during Amazon Prime Big Deal Days, brands can focus on several key metrics. Brand reach helps determine if the campaign is reaching the right audiences across streaming platforms and connected devices. Brand lift studies can assess how the ads influence consumer perception, such as awareness or purchase intent. Metrics like branded search and new-to-brand highlight how ads drive traffic and new customer acquisition on Amazon. Lastly, online visits measure how much your campaign increased product page views, providing direct insights into engagement.

3. Social Ads, Influencers, and UGC for Authentic Product Discovery

To drive engagement and product discovery during Prime Big Deal Days, brands should adopt a strategy that blends social ads, influencer marketing, and user-generated content (UGC). Social ads on platforms like TikTok, Instagram, and Facebook allow for precise targeting and retargeting, helping to create awareness and build momentum leading up to the event. Simultaneously, influencers can amplify product visibility by introducing items to their engaged followers, driving more authentic connections and recommendations.

Incorporating UGC—real content from customers—enhances this strategy by building trust and credibility, as shoppers are increasingly influenced by peer reviews and testimonials. Together, social ads, influencers, and UGC form a powerful, cost-effective strategy for capturing attention and generating demand, particularly in key categories like beauty, electronics, and wellness, where consumers actively seek trusted advice and recommendations before making purchase decisions.

As we head into Q4 and approach Amazon Prime Big Deal Days 2024, it’s clear that brands need to stay agile and forward-thinking to navigate rising competition, increasing CPCs, and evolving consumer behavior. By leveraging diverse strategies such as Amazon DSP, Connected TV, social ads, and influencer-driven UGC, brands can maximize their reach and optimize performance across key channels. With a focus on balancing cost-efficiency and ROI, brands that invest in multi-channel approaches are well-positioned to stand out during this critical shopping event. For tailored guidance and strategies to grow your brand, Direct Agents is here to help you succeed.

If you’re interested in learning more about our eCommerce offerings, email [email protected] to explore how our team can support your brand’s growth across Marketplaces, Social, and your Direct Site.