Brands always seek effective ways to reach their target audience and drive conversions. Amazon Marketing Cloud (AMC) and Amazon Demand Side Platform (DSP) are excellent tools that help brands maximize their customer reach and achieve their marketing goals. This article will explore how businesses can use AMC and DSP together and fully exploit their potential.
Amazon DSP
Amazon Demand Side Platform is a self-service advertising platform that allows businesses to programmatically buy digital advertising space on Amazon and other websites and apps that are included in Amazon’s network.
The objective is to reach new audiences in and out of Amazon. Its reach goes beyond what PPC advertising would typically allow.
Amazon DSP extends to audiences on:
- Twitch
- Digital Signage Ads
- Freedive (IMDb Streaming)
- Third-Party Exchanges
- IMDb
- Fire TV
- Kindle
- Apps
- Published Partners
- Amazon website
The use of Amazon DSP has been increasing among advertisers over the last few years. According to Amazon, DSP ads typically require a minimum spend of USD 50,000. If you work with an agency or have your own seat then there are no minimums.
Ad Types
Amazon DSP provides a wide range of ad types from which to choose. If you want to reach a large audience, consider using display or native ads. These ad formats can be displayed across various Amazon properties, including Amazon’s websites, apps, and video content.
If you want to target a specific audience, consider using video ads. These ad formats are extremely beneficial when targeting users based on their interests, demographics, or listening history.
You can also consider Amazon Search ads. These appear at the top of Amazon’s search results pages, so they’re highly visible to shoppers who are already interested in what you offer.
You can read more about Amazon DSP ad types here.
Amazon Marketing Cloud
According to Amazon, Amazon Marketing Cloud (AMC) is “a secure, privacy-safe, and cloud-based clean room solution where advertisers can easily perform analytics and build audiences across pseudonymized signals, including Amazon Ads signals as well as their own inputs.”
But why is it so helpful?
Well, AMC enables advertisers to track the entire customer journey, providing valuable insights at each stage. They can see actual user actions such as clicks, product purchases, and interactions with other ads. Previously, brands often had to make assumptions about how different ad formats impacted brand awareness or engagement. With AMC, views and impressions can be directly linked to downstream actions, allowing for better evaluation of advertising efforts across various channels.
AMC can be used by businesses of all sizes to improve their marketing performance. It is a powerful tool that can help businesses measure the effectiveness of their campaigns, target their ads to the right audience, and track the results of their marketing efforts. The AMC report combines Amazon Ad Campaign data like impressions, clicks, conversions, and advertisers’ own data sets to give them a whole view of campaign performance.
It provides businesses with the tools they need to measure the effectiveness of their marketing campaigns so they can see what’s working and what can be improved.
Expanding Customer Reach
Amazon Marketing Cloud allows for more accurate measurement of ad effectiveness, which can be critical for brands wanting to expand their customer reach.
Taking advantage of AMC Data set
AMC offers a unique data set in the market that allows brands access to a lot of benefits:
- Performance Marketing Analysis: Brands can analyze the effectiveness of their marketing efforts.
- Investment Tracking: AMC enables tracking and evaluation of investments over time.
- Incrementality Modeling: Brands can develop models to measure incremental impact accurately.
- Actual Net Sales Lift: AMC provides insights into actual net sales lift, going beyond superficial metrics.
Integrating Amazon DSP
AMC and Amazon DSP can be integrated, simplifying the workflow for advertisers so they can manage their campaigns more efficiently. AMC works best when combined with Amazon DSP. Here’s why:
- Increased reach: Amazon DSP gives advertisers access to a large and engaged audience on Amazon. When combined with AMC, brands can reach their target audience across multiple channels, including Amazon, social media, and search.
- Better measurement: AMC can be used to measure the effectiveness of marketing campaigns across multiple channels.
- Improved targeting: AMC can be used to create custom audiences based on advertisers’ and Amazon’s data to allow brands to target their ads more effectively to the right people. Pulse budgets based on DSP activity can be used to gain insights into user demand and consumer intent.
Examples where integrating Amazon DSP to AMC would be helpful:
- Brands could use AMC to create a custom audience of people who have visited their website but haven’t yet purchased a product. They could then use Amazon DSP to target these people with ads on Amazon.
- An advertiser could use AMC to track the performance of their Amazon DSP campaigns across multiple channels. This would help them see which channels drive the most conversions so that they can allocate their budget more effectively.
- Brands could use AMC to gain insights into customer behavior on Amazon. This would help them to understand what products their customers are interested in so they can create more relevant and engaging marketing campaigns.
Remarketing
Remarketing is considered a primary best practice in advertising. It involves targeting individuals who have previously engaged with the brand. Organic impressions earned through demand-driving activities on DSP should be maximized through sponsored ad campaigns.
Remarketing should not be limited to targeting only those who did not make a purchase but can also include customers who have already bought a product. When retargeting customers who have made a purchase, brands must consider factors such as net PPM, margin, introducing line extensions, or cross-selling between different facets of the portfolio.
Remarketing should be measured against AMC data, as it gives brands many Asin-specific insights that make their marketing strategies much more effective.
Final thoughts
Amazon DSP and Amazon Marketing Cloud are perfect tools for brands looking to maximize their customer reach. With Amazon DSP, advertisers gain space across multiple platforms and audience segments, surpassing traditional PPC ads. On the other hand, AMC provides deep insights into the customer journey, allowing brands to be more accurate and make data-driven decisions.
But succeeding on Amazon is not just about advertising. If done poorly, advertising can be a big slug for your schedule. To save time, experience is key. BellaVix will grow your business on Amazon, as our marketplace expert team can help you with DSP management and other marketing management services that support brands looking to grow with excellent service. Inquire about our DSP and AMC services here.
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