Today, advertising on Amazon is already common among many brands. However, few are aware of the potential of programmatic Video and Display advertising through the Amazon DSP. If the potential audience for a brand on Amazon were a big cake, Sponsored Ads would initially only be able to grab a 15 or 20% slice. To impact the other 80% of the potential audience, both inside and outside Amazon, you would have to invest in your DSP.
Therefore, in this article we will discuss what strategies brands can carry out to get the most out of this Amazon Advertising platform, as well as its main KPIs.
Retargeting
At Amazon there are many ways to set up strategies to impact a wider audience. One of the most effective strategies is to direct programmatic video and display advertising, through Amazon’s DSP, to those consumers who have already shown interest in buying your product or who are looking in the category. In other words, target all those who, in one way or another, are already familiar with the brand. Retargeting is 45% more likely to achieve conversion.
What are your main KPIs?
- Conversions; conversions attributed to retargeting can be direct (purchase immediately after clicking on the ad) or indirect (view the ad and finally purchase the product but not at that moment).
- CTR; brands should expect a CTR 10 times higher than conventional ads. A very useful practice is to use frequency caps to limit the number of times an ad is shown to the same user.
- Brand awareness; measured by analyzing how much the brand store, PDP or brand searches have increased.
- Increase in branded halo sales (sales that occur shortly after the end of the campaign).
- Return on Advertising Spending (ROAS).
Brand awareness.
Retargeting is very useful to efficiently reach all consumers who have shown interest in the category, product or brand. However, if you want to go further, you have to try to impact customers who do not yet know that they want your product.
There is a truth that affects all brands, the more users there are at the top of the funnel, the more consumers there will be at the bottom. While it may not be so urgent, the reality is that the top-performing brands on Amazon take the entire funnel into account in their performance strategy. At Amazon, this takes on significant importance as it is a tremendously competitive market.
One of the keys to the strategy you define is to ask yourself which user clusters you want to impact. To do this, Amazon provides several segmentation options: lifestyle, in-market, interests, demographics, custom audience, etc. These are the most relevant KPIs in the analysis of an awareness campaign:
- CTR; shows the interest towards the product or brand and if it is in front of the right audience.
- Commitment to the brand; increase in brand store visits and brand searches.
- Branded halo sales.
As we can see, the reports Amazon provides on the performance of your DSP advertising are tremendously useful. Each of these data helps companies make the right decisions about where their DSP strategy should go in order to be as effective as possible. They are key because they help you know your customers better, whether they are potential or committed to the brand.
How much is Amazon DSP worth advertising?
Having a well designed PPC campaign with strong SEO is the basis for selling on Amazon.
Once built, making a calculated investment in programmatic advertising through Amazon DSP becomes an exponential improvement in your overall performance. However, building DSP before PPC would mean taking the risk of inviting customers in before you are ready to receive them.
It is very important for the brand to analyze the suitability of its reality on Amazon. To do this, it must focus on knowing its positioning within the platform and the Conversion Rate of its products. If the data you handle is satisfactory, then it is a good time to invest in DSP with a clear and defined strategy. With retargeting, valuable leads are not wasted. With increased brand awareness, more people will come to Amazon with your product already in mind.
At Amazing | Amazon Data Driven Agency, our team of advertising specialists helps brands define the best strategies to make programmatic video and display advertising executed through the Amazon DSP more efficient. Knowing your customer and how they relate to your brand and products will help you build a more effective marketing strategy in all phases of the conversion funnel.
We are an agency specialized in helping sellers in the marketing and advertising management on Amazon
