Prime Day continues to be a hallmark yearly shopping event, generating $12 billion in sales in 2022. While the knee-jerk reaction from marketers is to shift their entire budget to this event as soon as it’s announced, the reality is that this is perhaps one of the worst decisions they can make.
At Keen, we’re able to quantify the impact of every dollar in every week of the year, accounting for all the interaction effects across all marketing tactics and time to determine the point of diminishing returns for marketing spend in a given week, or even in a given day, so marketers can determine the real impact of investing in Prime Day advertising.
Using our algorithms and post-modeling analysis, marketers would learn that they’d actually be spending more to support Prime Day because while a lot of consumers are coming in, the number is not as high as one would think. So, if you’re overspending on Prime Day, that means there’s an opportunity cost to spending outside of Prime Day, leading to fewer dollars being available to spend on the rest of the days and weeks of the year where there might be a more profitable volume of customers.
This becomes incredibly important when thinking about marketing holistically, across all channels and tactics, which are becoming more complex and fragmented over time.
Ultimately, it’s up to marketers to have a system that helps them to understand how to take their fixed budget and divide it across brick-and-mortar, ecommerce, different customer bases and retail media networks to be able to get to the optimal outcome that’s going to drive the best results.
Using this approach, they’ll see that their brand is better off creating a more balanced marketing mix instead of investing blindly into Prime Day.
Keen to learn more? Contact us today.
