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Advertising Deals

At MPS we encourage an always-on advertising strategy regardless of seasonality or launches. In part, our clients focus on advertising Deals during the off-season on Amazon to maintain momentum. These promotions usually see an increase in conversions while the competition is lower than normal. To take advantage, brands can use a similar approach to Cyber Monday or Prime Day, but on a smaller scale. Continue reading for more on why Deals of the Day can be beneficial to your brand all year round. 

The Purpose of Advertising Deals Outside of Peak Time Periods

Advertising Deals

Deals are most valuable to brands with a focus on quantity and exposure. These Deals show up on the 'Today's Deals' page, the second most visited page on Amazon, and offer brands a built-in and expanded audience. 

Not having to rely on Prime Day or the holidays is part of the value of having an always-on advertising strategy. And, after an unpredictable year, consistently advertising Deals could be helpful in a brand's rebound. This strategy can also have a positive impact on lifetime RoAS, as seen below via client data.

Strategic Recommendations and What to Expect

When running Deals at any time, advertisers should focus on bids and ensure they don't become too high. Outside of peak time frames, MPS clients usually increase bids by 50% at most. When it comes to budget, if the Deal is significant, our strategists increase the budget by three-to-five times the normal daily budget. With this said, it's important to monitor conversion rates. They must be high enough to make up for the discount taken. 

Finally, to make the most of Deals, some of our clients share and promote them on other sites and outlets. This can help increase the pool of potential shoppers.

Client Case Studies

Brands are likely to see more sales and a greater RoAS when an ASIN is a Deal of the Day. And, as mentioned, lifetime RoAS can also increase as a result. For Deal 3, the client saw a decrease in RoAS and lifetime RoAS. During this time, CPCs were also higher than normal for automatic campaigns due to increased competition.

While a dip in return is never ideal, there are steps you can take to protect your brand's RoAS or lifetime RoAS. First, we suggest monitoring CPCs throughout the Deal day and spot check specific keywords. This will allow you to evaluate the level of competition and take action to adjust bids and budgets as needed. Then, we also recommend your bidding strategy is set to 'down only'. This is important to ensure you're not bidding more than you're willing or able to pay per click. Finally, if RoAS is a concern, it's worth focusing on ad types that traditionally have lower costs and higher returns. When this is the case, Sponsored Product Ads are usually the safer option compared to Sponsored Brand Ads.

Final Thoughts

Brands with an always-on advertising strategy will stand out among their competitors. Leveraging Deals of the Day is one way to take this approach up a notch and drive consistent and incremental sales for your brand.  

If you could use the support of a strategic partner, schedule a free consultation. And, as always, we’re here to answer any questions about your brand’s presence on Amazon and other marketplaces. Finally, should you be interested in learning more about the results our clients experience through a partnership with MPS, check out these resources.


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