In the world of digital marketing, the ability to measure the performance of advertising strategies is an incredible asset. Digital advertising offers a plethora of opportunities, but it also presents unique challenges, where the lack of precise metrics can result in wasted resources and a disconnection from the target audience.
The importance of measurement in digital advertising lies in its ability to provide clarity and objectivity in an environment characterized by complexity and speed. Without solid metrics, strategic decisions are based on guesswork rather than concrete data, which can lead to suboptimal results and even the loss of valuable opportunities.
In this context, Amazon emerges as an undisputed giant in the landscape of e-commerce and digital advertising. Its large audience, deep understanding of consumer behavior, and robust measurement infrastructure make this platform a fertile ground to explore the importance and impact of measurement in online advertising.
There are hundreds of metrics that marketers can use to determine the success of a campaign; it’s a matter of choosing the right ones for each strategy.
Marketing metrics play a crucial role in enabling brands to evaluate the effectiveness of their campaigns, obtain valuable insights for future strategies, and understand if their campaigns are aligned with established objectives.
Determining Success in Digital Advertising: Key Metrics and KPIs
There are countless metrics to evaluate a campaign, but as we’ve discussed, the key is to choose the ones that are appropriate to determine their effectiveness or failure. These metrics are called KPIs (Key Performance Indicators), and we need to focus on a few specific, measurable, and achievable ones. It’s not profitable or productive to play solo, so at this stage of setting them up, we need to keep our feet on the ground and define them appropriately.
KPIs are not static; they evolve over time and vary depending on the stage of the marketing funnel your brand is in. Let’s discuss, for example, three crucial KPIs and metrics that any digital marketer should focus on:
- Lead Generation: Tracking the generation of new leads and their conversion rate is essential for evaluating the impact of an advertising campaign. Tools like Amazon Attribution and Amazon Marketing Cloud allow advertisers to understand these metrics in detail, including actions such as product page views and purchases.
- Return on Investment (ROI): Comparing Customer Lifetime Value (CLV) with Customer Acquisition Cost (CAC) reveals the effectiveness of a campaign in terms of return on investment. If the CAC is high and the CLV is low, it’s a clear signal to adjust segmentation strategies.
- Impression Percentage: This indicator shows the effectiveness of a brand in a particular channel compared to its total potential audience. An increase in the impression percentage can indicate greater visibility and the possibility of increasing sales.
It’s highly relevant to have tools that help us monitor all campaigns and KPIs, as well as dashboards that consolidate them and help us understand the data to make timely decisions to maximize campaign budgets. At Amazing, we have our own reporting tool called Amazing Studio, where we consolidate all key retail data with data from different advertising campaigns into one dashboard so our clients can analyze and observe all real-time data that’s giving us great results.
And in this regard, Amazon Ads offers a variety of tools to measure campaign performance that stand out compared to other market players. For example, Amazon DSP provides detailed information before and after campaigns, with over 600 measurement KPIs, while Amazon Attribution allows tracking the impact of marketing channels outside of Amazon on brand performance on the platform.
A recommendation regarding the power of measurement is that each campaign should be created with a single main measurement KPI since it’s difficult to orient and optimize it if we aim to achieve everything in the same campaign; it’s impossible. In the case of Sponsored Ads, each available advertising format has a clear measurement KPI:
- Sponsored Product format is measured in ACOS / ROAS.
- Sponsored Brand is perfect for NTB.
- Sponsored Display is for cross-selling and more brand protection + attack, so it should also be measured in ROAS.
And in the case of Display campaigns, it’s interesting because the platform itself, when you create the campaign line, requires you to indicate the measurement KPI since the algorithm will prioritize impacts based on your main objective and optimize the budget towards the ASINs that best fit the KPI, placements, and the rest of the metrics that need to be included to activate the campaign.
Amazon DSP can and should be used to impact all stages or divisions of the funnel. From awareness campaigns, consideration campaigns, prospecting, and even performance campaigns. The key, as we mentioned earlier, is that we know how to measure each of them well and don’t mix KPIs or seek too many things in each of them because they won’t work. In this case, the most used or frequented KPIs are IMPRESSIONS, CTR, DPVR, ROAS, NTB, and SALES.
Precise Measurements with AMC: Comprehensive Analytics
And we couldn’t fail to mention that Amazon offers a comprehensive solution with its data measurement tool, Amazon Marketing Cloud (AMC), which is differential and takes data to another level. This platform allows advertisers to assess the impact of their campaigns across the entire Amazon ecosystem, providing valuable insights to adjust strategies and optimize results. Undoubtedly, a tool that, from the advertiser’s point of view, adds great value and a source of data that, with the specific study of a specialized player, can help a lot in optimizing campaigns and distributing the budget appropriately.
The integration of data across various Amazon platforms creates a unique synergy. From product discovery in the marketplace to content visualization on Prime Video, each user interaction contributes to a complete picture. This not only facilitates the personalization of advertising messages but also maximizes campaign efficiency by allowing a better understanding of consumer behavior.
In conclusion, having a player like Amazing to help you evaluate and measure all your actions is essential if you want to achieve the best results and optimize your advertising budget. Additionally, we are experts in AMC and, thanks to our more than 10,000 daily active campaigns, we know a lot about optimization and creating advertising strategies.
