• Amazon confirmed Prime Day will take place on October 13 and 14.
  • The event should boost both Amazon’s advertising revenues and its Prime membership program.
  • Insider Intelligence analyzes this industry and several others to provide in-depth analyst reports, proprietary forecasts, customizable charts, and more. Learn more about what we offer.

Amazon confirmed Prime Day will take place on October 13 and 14, after the annual sales event—which traditionally falls in mid-July—had to be postponed due to the risks posed by the pandemic. This is the second time the event will last two full days, and it’s expected to be Amazon’s largest sales event ever. Our September 2020 estimates show that worldwide Prime Day sales will total $9.91 billion this year, with the US accounting for 62.3%, at $6.17 billion.

expected promotions and advertising investments of digital retailers worldwide during amazon prime day 2020

Amazon’s Prime Day is expected to boost its advertising revenues and its Prime membership program.

eMarketer


Amazon’s Prime user base has seen steady growth during the pandemic, and Prime Day will only add to the gains. The shift to ecommerce during the pandemic appears to have strengthened the value of a Prime membership. US Prime users will reach 142.5 million this year, a 14.9% increase from last year, per our latest estimates.

That reflects a significant upward revision from our pre-pandemic forecast of 133.1 million. Last year, Amazon said that Prime Day delivered the highest increase in new Prime memberships during a two-day period for the company. This year, it will likely see similar gains to those in 2019, if not better. 

Prime Day will also be a boon for Amazon advertising, as marketers look to capitalize on the digital shopping event. In previous years, Prime Day led to a spike in spending on Amazon’s advertising platform. In 2019, advertisers spent nearly four times as much on the first day of the event relative to the average July day leading up to it, per ad tech platform Kenshoo.

There will likely be an even larger uptick in spending this year, as brands ramp up their  investments in advertising on ecommerce platforms during the pandemic to match shifting consumer behavior. In addition to advertising, many digital retailers are expecting to participate in Amazon’s promotional programs. Almost half (43%) of Amazon sellers worldwide said they plan on joining an officially sanctioned “Lightning Deal” or “Featured Deal,” and 39% said they would offer other Prime member promotions or coupons, per March 2020 data from performance analytics platform Profitero.

Want to read more stories like this one? Here’s how you can gain access:

  1. Join other Insider Intelligence clients who receive this Briefing, along with other Media, Advertising, & Marketing forecasts, briefings, charts, and research reports to their inboxes each day. >> Become a Client
  2. Explore related topics more in depth. >> Browse Our Coverage

Are you a current Insider Intelligence client? Log in here.

Source Article