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Demystifying Amazon Marketing Cloud’s Attribution Model

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Demystifying Amazon Marketing Cloud’s Attribution Model

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Amazon Marketing Cloud is a holistic measurement and analytics solution, and can be a treasure trove of data that can be converted into insights to drive your Amazon business.

Learning how AMC works can give you a robust understanding of your audience and your performance on Amazon – but knowing where to begin is the tricky part.

In this webinar, our Amazon Marketing Cloud expert will dive into how to utilize AMC to get the answers to your most pressing business questions on Amazon.

Amazon Marketing Cloud is a holistic measurement and analytics solution, and can be a treasure trove of data that can be converted into insights to drive your Amazon business.

Learning how AMC works can give you a robust understanding of your audience and your performance on Amazon – but knowing where to begin is the tricky part.

In this webinar, our Amazon Marketing Cloud expert will dive into how to utilize AMC to get the answers to your most pressing business questions on Amazon.

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Demystifying Amazon Marketing Cloud’s Attribution Model

  1. 1. Demystifying Amazon Marketing Cloud's Attribution Model 1
  2. 2. Today’s Logistics Kerry Mallett Senior Content Specialist, Webinar Recording & slides will be in your inbox shortly after the session Download relevant resources Join our chat and submit questions for live Q&A Log back anytime with same link Join our poll questions - including if you want to talk to our teams after! 2
  3. 3. WE’VE MASTERED THE MEDIA THAT MATTERS MOST Tinuiti is the largest independent performance marketing firm across Streaming TV and the Triopoly of Google, Facebook, Amazon. Employees Media managed Award-winning culture* $3B #1 1000+ 3
  4. 4. Some of Our Clients Our Recognition For Commerce Leaders Of Today And The Future 4
  5. 5. Our Speaker ALY FIELDS Associate Director, Strategic Services - Commerce 5
  6. 6. Agenda ● Clean Room Basics ● Advertising Challenges ● Why is AMC Important? ● Actionable Reporting ● Key Takeaways ● Q&A 6
  7. 7. What is your familiarity with clean rooms? ● Early adopter - can’t get enough ● It’s a great buzzword, but I haven’t used one ● I have no idea what that is POLL 7
  8. 8. Clean Room Basics 8
  9. 9. Learn the Lingo Data Clean Room Data clean rooms are privacy-friendly environments in which advertisers can join their event-level datasets with other event-level datasets in a privacy-safe environment. AMC Instance An AMC instance includes one or more Amazon DSP CFIDs and could also include Sponsored Products entity IDs for one advertiser company. When users query data sets, they only query from one instance and cannot query across instances in the same query. Query A request for data from a database. 9
  10. 10. How AMC Works ADVERTISER FIRST-PARTY DATA AMAZON MARKETING CLOUD AMAZON ADVERTISING 10 FIREW ALL FIREWALL Advertiser Data Aggregate Reports Custom Audiences Advertising Events ● Scoped per advertiser ● Aggregates can be exported ● Uses AWS for compute and data storage
  11. 11. Advertising Challenges 11
  12. 12. “Amazon dominates the fast-emerging retail media ad market” “Amazon dominates retail media ad spend. The company will drive an incredible 77.7% of US retail media digital ad spend this year.” Emarketer Estimates that Retail Media will own 17.2% of all digital ad spend in 2022. 12
  13. 13. Source: 1) eMarketer, August 2019 INDUSTRY Advertisers who rely solely on cookies to reach their audience and attribute actions will face challenges as new policies like are introduced INVENTORY More than 1 in 4 surveyed advertisers and agencies name supply transparency as their biggest challenge1 EFFICIENCY Unlock click pathing & full-funnel attribution Fees, Cookie Limitations, & Supply Cause Programmatic Ad Challenges 13
  14. 14. Cross-channel measurement and attribution is a priority for marketers, with more than half of them expecting them to occupy most of their time and resources.1 Marketers report using six or more tools to measure their marketing performance.2 But - half of them worry about their accuracy. Sources: 1) "In-House Analytics Platforms Help Data-Obsessed Agencies." eMarketer, April 18, 2019; 2) Survey: Most Marketers Use 6+ Measurement Tools But Don’t Trust the Data." Convince & Convert, 2019 Advertising Measurement is Becoming More Complex 14
  15. 15. Why is AMC Important? 15
  16. 16. Why is AMC Important? UNDERSTANDING Current advertising efforts INCREASE TESTING Learn across the funnel position CROSS-TEAM COLLABORATION & data trends MEANINGFUL STRATEGY SESSIONS & Narrative KNOWLEDGE WEALTH Customized queries that are tailored to your goals 16
  17. 17. Actionable Reporting 17
  18. 18. Measure Progress With Amazon Marketing Cloud 18 USE CASE MEASUREMENT QUESTIONS AMC HELPS ANSWER PERFORMANCE Unique Reach What's the number of unique / de-duplicated audience that was reached by a particular campaign / media type? Incremental Reach How many people reached by a specific campaign / media type were not already reached by other existing advertising efforts? HH Penetration What portion of the households in a certain geo area / city / state were reached by search and/or DSP ads? AUDIENCE INSIGHTS Target Audience Analysis Among the target audience, what do those that engaged with ads look like? Optimal Audience Segment Analysis What are the best segments to reach or exclude by media type, creative type, geo area, or other attribute? Media Mix Impact What's the impact of media type X when used in combination with media type Y? JOURNEY ANALYSIS Dayparting What times of day or days of week should the ads be scheduled to reach optimal results? Tactic Analysis What creative, call-to-action, keyword, landing page, is most effective at driving the campaign objective? Purchase Pattern Analysis Repeat Purchase Which products have the most repeat purchases? Purchase Sequence & Correlation What's the common sequence of product purchase? What products are often purchased in combination with each other? Omnichannel Impact Analysis Offline & Total Impact What's the impact of advertising on D2C offline sales? What's the impact of advertising across D2C channels on and off Amazon? GOAL Analyze data and findings to update advertising strategy to ensure largest impact
  19. 19. Measure Progress With Amazon Marketing Cloud 19 USE CASE MEASUREMENT QUESTIONS AMC HELPS ANSWER PERFORMANCE Unique Reach What's the number of unique / de-duplicated audience that was reached by a particular campaign / media type? Incremental Reach How many people reached by a specific campaign / media type were not already reached by other existing advertising efforts? HH Penetration What portion of the households in a certain geo area / city / state were reached by search and/or DSP ads? AUDIENCE INSIGHTS Target Audience Analysis Among the target audience, what do those that engaged with ads look like? Optimal Audience Segment Analysis What are the best segments to reach or exclude by media type, creative type, geo area, or other attribute? Media Mix Impact What's the impact of media type X when used in combination with media type Y? JOURNEY ANALYSIS Dayparting What times of day or days of week should the ads be scheduled to reach optimal results? Tactic Analysis What creative, call-to-action, keyword, landing page, is most effective at driving the campaign objective? Purchase Pattern Analysis Repeat Purchase Which products have the most repeat purchases? Purchase Sequence & Correlation What's the common sequence of product purchase? What products are often purchased in combination with each other? Omnichannel Impact Analysis Offline & Total Impact What's the impact of advertising on D2C offline sales? What's the impact of advertising across D2C channels on and off Amazon? DMA Analysis Dayparting Analysis Data Upload
  20. 20. 20 Tentpole Reporting ● With a Tent Pole report, we can see what the data looked like a week before Prime Day, the week of Prime Day, and the week after Prime Day ● Example strategies: ○ For customers that became part of NTB segments, we should be setting up loyalty tactics to keep them within the brand. This can look like retargeting products that had the highest NTB during the event with an upsell or complimentary product in your catalog and measuring how many of those NTB became repeat purchases. ○ If purchases were lower than expected during the event- Basic retargeting should be set up pre-event for products that had a high engagement in DPVs but did not convert and be deployed during the event with a deal.
  21. 21. 21 Custom Attribution ● With a custom attribution report, we can set rules to determine how credit is assigned to conversions from users exposed to your campaigns ● Example insights: ○ When attributed with first touch attribution, DSP campaigns account for 67% of total conversions ○ A contextual campaign brought in $14.7K in sales when using last touch attribution but $23.7K in sales using linear sales meaning that the ads are being seen by customers First Touch: gives full credit to the first touch point (impression or click) of an ad interaction Last Touch: assigns full credit to the last ad a user saw or clicked Position: attribution splits credit between the first and the last touchpoints on your customer’s conversion path. Weights assigned to these two touchpoints are customizable Linear: assigns each touchpoint in the conversion path with equal credit for the conversion Source: AMC Instructional Queries
  22. 22. Identify how a gateway product drives growth in new customers to the brand. ● We needed to first find a way to identify the gateway product that drives new to brand purchases. ● How does a highly repeat purchase product bring in new customers to the brand’s business on Amazon? CHALLENGE SUMMARY ● Utilizing AMC, we identified an opportunity to increase marketing efforts for the gateway product as new-to-brand repeat purchase rate were +85% during the prior quarter. SOLUTION ● We launched a media test to expand targeting for gateway product into adjacent categories. ● Result from this test were a 103% increase in new to brand purchases and 11% increase in Total Orders. RESULTS Increase in New to Brand Orders Increase in Total Orders +103% CPG Brand Custom Query Leads To 100%+ Increase In New To Brand Orders 22 +11%
  23. 23. Identify top Amazon Fresh DMAs (Designated Market Areas) to efficiently acquire new customers via Display. ● Using “New-to-Brand” and “Repeat Purchase” data for Amazon Fresh, identify top performing DMAs based on new shoppers who continued to buy after their first purchase. ● Test said locations against all Fresh available markets to prove higher performance of these top 5 locations. CHALLENGE SUMMARY ● Cost per acquisition of a new customer decreased significantly by 54%. ● New-to-Brand ROAS was more than double for the top 5 DMAs, increasing by 145%. ● Targeting repeat, new-to-brand customers in select locations returns more positive performance than targeting all available Fresh locations. SOLUTION ● Increased investment in the AMC test group campaign by 85% QoQ to maximize performance outputs. ● Continue to identify select top DMAs for Amazon Fresh based on the “New-to-Brand” and “Repeat Purchase” criteria. Test campaign New-To-Brand ROAS New-To-Brand Cost Per Purchase improvement +145% RESULTS -54% Where Can I Find New Customers, Efficiently? 23
  24. 24. ● How does conversion rate change as shoppers are exposed to multiple advertisements across the advertising channels we are using. CHALLENGE SUMMARY ● Audiences exposed to Sponsored Products and Display convert 3-4x more than those exposed to just Sponsored Products or Display. ● Continued investment in OTT shows the this audience conversion rate is increasing most rapidly month-over-month and will eventually have a higher conversion rate that the Sponsored Product & Display audience. SOLUTION ● Continue to invest in Display and OTT over the long term. ● Grow the audience size of the exposure groups that have the highest conversion rates. RESULTS New-to-brand Purchase Rate 2.5x higher when exposed to Display, OTT & Sponsored Products Purchase Rate when exposed to Display, OTT & Sponsored Products 2.5x 3.45%+ How Many Ads and Ad Types Does it Take to Convert a Customer? 24 Measure the audience sizes for exposure groups across Sponsored Products, Display, and OTT.
  25. 25. Key Takeaways ● As cookies go away advertisers will have to find new ways to measure campaign metrics ● Advertising measurement is becoming more complex ● AMC can unlock efficiencies through click pathing and full-funnel attribution. 25
  26. 26. Schedule Your Consultation with an Amazon Marketing Cloud Expert 26
  27. 27. Q&A ALY FIELDS Associate Director, Strategic Services - Commerce 27
  28. 28. 28 Stay informed on the future of digital marketing Visit our new content hub ➜
  29. 29. Thank you! 29

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