Newly released data from the e-commerce advertising platform Pacvue illuminates the rapidly intensifying competition among Amazon sellers during the recent Cyber Monday shopping event. As brands competed to capture the attention of last-minute holiday shoppers, they significantly increased their advertising expenditures. Overall advertising spending surged by 23.3% year-over-year, and the costs per click (CPC) saw a notable rise of 15.8% from the previous year, reaching $2.12. This surge in advertising investment aligns with record online shopping levels during the holiday period; Adobe Analytics reported that U.S. consumers spent an astounding $12.4 billion on Cyber Monday, marking a 9.6% increase from 2023 and establishing it as the largest online shopping day to date.
According to preliminary data from Pacvue, while brands vastly increased their healthcare investment for Cyber Monday, the average daily ad spend rose by a striking 96% compared to the day before. This dramatic escalation suggests that many sellers strategically withheld a portion of their budget to allocate toward the critical shopping day, potentially anticipating higher competition. It’s noteworthy that spending significantly outpaced the typical profile for Cyber Monday that historically follows the day-after-Thanksgiving rush, suggesting brands were prepared to engage robustly with consumers as they approached holiday shopping deadlines.
Cyber Monday competition markedly surpassed that of Black Friday, as indicated by carefully analyzed ad spending patterns. Although overall ad spend only increased by 3% from Black Friday to Cyber Monday, the CPC experienced a sharp 16% uptick during the same timeframe. This divergence highlights that brands were not necessarily optimistic about escalating their budgets but were compelled to invest more to maintain visibility in an increasingly crowded competitive field. Melissa Burdick, President of Pacvue, remarked that this heightened engagement demonstrated a clear imperative for brands to capture unsatisfied holiday shoppers still on the lookout for deals.
Marketers shifted their focus squarely to bottom-funnel advertising strategies on Cyber Monday, with brands investing 3.7 times more in Sponsored Products ads than in Sponsored Brands ads. The strategic emphasis on performance-based advertising seems justified, as Sponsored Products yielded a 30% lower CPC compared to Sponsored Brands while simultaneously driving substantial site traffic. This deliberate focus aligns with wider trends in retail media spending, where over 71% tends to occur in lower-funnel ads, indicating a preference for conversion-oriented advertising that directly impacts sales.
Even as Amazon makes efforts to elongate the holiday shopping season, the data suggests brands still felt the necessity to compete vigorously during the traditional peak of Cyber Monday. Amazon has formally expanded its promotional window from what was once known as “Turkey 5” to the now extended “Turkey 12,” nonetheless, brands have started offering discounts as early as the Sunday before Thanksgiving. However, the Cyber Monday metrics indicate that despite earlier promotions, there is a persistent urgency among brands to capture peak conversion opportunities, with costs escalating notably relative to the earlier promotional periods of the shopping season.
The results of this year’s Cyber Monday yield important insights for brands as they strategize for future holiday advertising campaigns. The sustained competitiveness during peak shopping events indicates that brands cannot wholly redistribute their budgets across an extended promotional calendar without sacrificing visibility during critical times. “The challenge for brands is balancing the opportunity to capture early holiday shoppers against the need to maintain strong presence during peak shopping days,” Burdick explained. As preparations for next year’s shopping seasons unfold, brands may need to consider more sophisticated advertising strategies—maintaining visibility throughout the extended season while also ensuring they reserve substantial budgets for peak days to maximize their potential competitiveness and engagement.
