Newly released data from e-commerce advertising platform Pacvue reveals intensifying competition among Amazon sellers during Cyber Monday, with advertising costs rising sharply as brands vied for last-minute holiday shoppers. Overall ad spending increased 23.3% year-over-year, while costs-per-click jumped 15.8% compared to 2023, reaching $2.12. The surge in advertising investment comes amid record online shopping volume – Adobe Analytics reports that U.S. consumers spent $12.4 billion on Cyber Monday, up 9.6% from 2023, making it the largest online shopping day in history.
The Pacvue data, which is preliminary and subject to revision as conversion data settles, shows brands spent significantly more to capture consumer attention during the critical shopping event, with the average daily spend increasing 96% compared to the day prior. This dramatic spike suggests many sellers held back budget for Cyber Monday despite an earlier start to holiday promotions this year.
Intensifying Competition in Amazon Ads
Competition appeared particularly fierce on Cyber Monday compared to Black Friday’s patterns. While overall ad spend increased just 3% from Black Friday to Cyber Monday, cost-per-click surged 16% during the same period. This disconnect between spending and costs suggests brands didn’t necessarily choose to spend more, but rather were forced to pay premium prices to maintain visibility as competition intensified for last-minute holiday shoppers.
“Cyber Monday is proving more competitive than Black Friday,” explains Melissa Burdick, President of Pacvue. “Average brand spend and CPC was higher for Cyber Monday than Black Friday, showing an increased investment from brands to capture last-minute shoppers still looking for deals.”
Bottom-Funnel Focus for Advertisers
Brands demonstrated a clear preference for conversion-focused advertising during Cyber Monday, investing 3.7 times more in Sponsored Products ads compared to Sponsored Brands. This strategy appears well-founded – Sponsored Products achieved a 30% lower cost-per-click compared to Sponsored Brands while still driving significant traffic.
The focus on performance advertising aligns with recent data showing over 71% of retail media spending typically occurs in lower-funnel ads like sponsored products.
The Lengthening Holiday Calendar
The intense Cyber Monday competition comes despite Amazon’s efforts to spread holiday shopping across a longer timeframe. As I recently wrote for Forbes in “Why The 2024 Holiday Shopping Season Will Be A Mixed Bag For Retailers And Brands,” Amazon has expanded what was traditionally known as “Turkey 5” into “Turkey 12” – more than doubling the duration of previous years’ promotional periods.
Many brands began their holiday discounting the Sunday before Thanksgiving, yet the Cyber Monday data shows they still felt compelled to compete aggressively during the traditional peak. This appears particularly true for last-minute conversion opportunities, with costs spiking significantly compared to earlier promotional periods.
Electronics Category Shows Traditional Strength
While Cyber Monday may have evolved far beyond its origins as a day for electronics deals, the category continues to show remarkable strength. According to Pacvue’s data, electronics achieved nearly triple the return on ad spend compared to other categories. This performance is particularly notable given the extended promotional calendar, suggesting that some shopping behaviors remain tied to traditional peak days regardless of earlier deals.
Strategic Implications for 2025
The data presents a strategic puzzle for brands planning next year’s holiday advertising. While Amazon and other retailers continue expanding the promotional calendar – including events like October’s Prime Day – the sustained intensity of Cyber Monday competition suggests brands can’t simply redistribute their budgets across a longer timeframe.
“The challenge for brands is balancing the opportunity to capture early holiday shoppers against the need to maintain strong presence during peak shopping days,” explains Burdick. “Even with earlier promotions, we’re seeing that many consumers still wait for these traditional shopping events.”
Looking ahead, brands may need to develop more sophisticated approaches to holiday advertising allocation. Rather than choosing between early promotion and Cyber Week presence, successful strategies might require maintaining consistent visibility across the extended season while still reserving significant budget for peak shopping days.
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