Momentum Commerce Grows Client Revenue 87% YoY on Prime Day 2023
Momentum Commerce today announced a dramatic 87% year-over-year sales increase for the brands they manage on Amazon this Prime Day versus last year’s July Prime Day event. Therabody and Hey Dude, two of Momentum Commerce’s long-standing clients – were called out in Amazon’s formal press release confirming that Prime Day 2023 was the retail site’s biggest sale event in history.
These impressive growth numbers come against a more competitive backdrop on Amazon US as a whole. According to Momentum Commerce data drawn across the top 50,000 Amazon search terms:
- Discounting activity on Amazon US during Prime Day 2023 was higher than Prime Day 2022
- 18% of products appearing across the top 50,000 search terms on Amazon ran discounts during Prime Day 2023, versus just 14% during Prime Day 2022 – an increase of 24%
- Across that same basket of search terms, the median priced product on Amazon was discounted by 33% on Prime Day 2023, versus 28% during Prime Day 2022 – a change of 19% year-over-year
- Sponsored Ads appearing in the top 10 results actually declined 5% year-over-year
- Sponsored Ads made up an average of 35% of top-10 placements across the top 50,000 terms on Amazon during Prime Day 2023 versus 37% during Prime Day 2022
- This slight decrease in available inventory likely contributed to higher ad costs for brands. Across Momentum Commerce’s client base, brands spent an average of 14% of total sales to promote products
These trends varied significantly across categories. To help the industry better understand prime day activity Momentum Commerce has updated it’s completely free and interactive Amazon Brand Leaderboard with a special version to examine Prime Day 2023 performance
“In addition to deals and onsite search advertising, Prime Day 2023 was a massive success for Amazon’s broader advertising ambitions,” said John T Shea, CEO & Founder of Momentum Commerce. “Our teams worked tirelessly this year to support brands with innovative solutions for driving growth on Amazon while also creating a halo benefit on DTC sales.”
Key tactics that rose in prominence this year included:
- Sending offsite traffic to Amazon and tracking sales with Amazon Attribution to take advantage of Amazon’s Brand Referral Bonus
- Leveraging on-Amazon multimedia options like Amazon Live to educate consumers about new and discounted products.
- Recruiting influencers on Instagram and TikTok to promote Prime Day deals
- Activating full-funnel media programs with Amazon’s Demand-Side Platform (DSP), and in particular using Amazon shopper data to target, buy, and measure advertising on streaming TV to increase branded search demand on Prime Day.
For more information about Momentum Commerce, please visit https://www.momentumcommerce.com/