Overview

Helium 10’s weekly briefing on June 29, 2022 warned sellers that the upcoming second Prime Day in July could see weaker results from Sponsored Display campaigns. Early metrics show a dip in orders generated by these ads compared with the same period last year, prompting advertisers to rethink budget allocations before the high‑traffic weekend. Understanding this shift is essential for maintaining profitability during one of the year’s biggest sales events.

Key Points

• Second Prime Day slated for July — Amazon will repeat the flash‑sale format that drove massive traffic in November, offering sellers another chance to capture heightened shopper intent.
• Sponsored Display sales falling — Data from the first week of the promotional window reveal a noticeable reduction in orders attributed to Sponsored Display versus the 2021 benchmark.
• Spending moved to Sponsored Products — Many advertisers are shifting a portion of their display budget to product‑targeted ads, chasing higher conversion rates during the event.
• Creative fatigue emerging — Reusing the same ad assets over the extended Prime Day period is lowering click‑through rates, as campaign managers report diminishing engagement.
• Competitive pressure rising — Rival sellers are deploying aggressive price cuts and lightning‑deal tactics, which squeezes the effectiveness of display‑only placements.
• Data‑driven pivots paying off — Brands that refreshed creatives and adopted audience‑specific targeting observed steadier sales despite the overall downturn.
• Inventory sync critical — Stock‑outs on high‑margin items amplified the impact of weaker ad performance, highlighting the need for coordinated inventory planning.
• Seller sentiment split — Some merchants view the dip as a temporary blip, while others see it as a cue to diversify their advertising mix before July.

How Sponsored Display Works

1. Audience targeting — Amazon pairs ads with shoppers based on browsing history; for instance, a buyer who recently viewed a rival espresso machine may encounter a Sponsored Display ad for a comparable model while exploring kitchen accessories.