Insights from Cyber Monday 2023

Data & Insights
Strategy & Trends
  • Nick Franck
  • November 29, 2023

The weeklong surge of digital deals reached its peak on Cyber Monday. While many brands are extending their deals throughout the week, let’s put the spotlight on Cyber Monday. Following Adobe’s report of a record-breaking Black Friday sales event, reaching $9.8 billion, expectations for Cyber Monday were notably heightened. 

As we explore the initial data, Cyber Monday exceeded Black Friday’s spending, reaching a record-breaking $12.4 billion (according to Adobe). Shoppers did not hold back, spending around $15.7 million every minute during the peak sales hours. Even more impressive is the fact that sales from Sponsored Ads saw a 16% year-over-year increase from 2022. 

Cyber Monday Key Takeaways

  • There was a notable increase in Cost Per Click (CPC) for Sponsored Brands, rising by 30% compared to last year, while Sponsored Products CPC saw a more moderate increase of 10%.
  • As brands continue to shift budgets to retail media from PPC and social, advertising spend saw a substantial increase, jumping by 60% for Sponsored Brands and 47% for Sponsored Products compared to the previous year (2022).
  • Return on Ad Spend (ROAS) has seen a decline, down by 15% for Sponsored Products and 30% for Sponsored Brands year-over-year, with increased ad costs and higher product prices due to inflation. Check back later for our full ROAS analysis as additional data is collected in the attribution window. 

As we continue to analyze the data throughout the week, let’s delve into the current outlook from Cyber Monday.

CPC

Sponsored Brands CPC experienced a notable year-over-year increase of 30%, showcasing advertisers actively capitalizing on new product offerings. Conversely, Sponsored Products CPC saw a slight uptick for Cyber Monday, registering a 10% increase compared to 2022.

Cyber Monday placements proved to be more competitive than those on Black Friday, as brands sought to capture consumer spending in the final sales before Christmas. CPC was up 14% for Sponsored Brands and 8% for Sponsored Products.

Advertising Spend

On average, brands allocated a higher budget for Sponsored Products Ads on Cyber Monday compared to Black Friday in 2023. However, Sponsored Brands spend remained consistent across both days.

2022 IAB Study reported that more than half of retail media ad buyers would reallocate funds from social, PPC and digital video to retail media, increasing spend by 11% on average. We witnessed this surge on Cyber Monday, particularly in Amazon Sponsored Ad spending. Sponsored Brands experienced a 60% increase, while Sponsored Products saw a 47% rise compared to 2022. The spending increase for Sponsored Brands was driven by the adoption of new product offerings, such as Sponsored Video ads and Product Collections.

As of 12/09, our final data set showed ad spend was up this Cyber 5, and on Black Friday, ad spend for Sponsored Products and Sponsored Brands rose 55% and 61%, respectively, YoY. On Cyber Monday, ad spend increased 60% YoY for Sponsored Brands, and 47% for Sponsored Products vs 2022.

Return on Advertising Spend and Conversion Rates

As of Tuesday, our data shows that ROAS was down 15% for Sponsored Products and down 30% for Sponsored Brands. We anticipate this downward trend to level as additional data is collected within the attribution window.

Conversion rates for both Sponsored Products and Sponsored Brands have remained flat year-over-year. However, with ongoing data collection, we anticipate that the conversion rates will likely outperform those of 2022.

Conclusion

Brands continued to prioritize spending on Cyber Monday over Black Friday, aiming to capitalize on one of the biggest sales events of the year. This strategy proved successful, with average sales from Sponsored Ads on Cyber Monday growing 16% from 2022. 

As brands continue to reallocate budgets from social and PPC, retail media witnessed another surge in spending this year. A significant portion of the additional spend was directed towards Sponsored Brands Ads, with brands leveraging new product offerings for Sponsored Brands Ad placements.

As we enter the final weeks of the year, it’s important for brands to prioritize the analysis of data from Cyber-5 and leverage retargeting through DSP and AMC.

Be sure to check back next week, as we will be publishing a comprehensive report from Cyber -5, providing in-depth insights into categories and DSP performance. 


Author
Nick Franck

Awards & Recognitions