The MC Approach to Amazon DSP

The MC Approach to Amazon DSP

By Elise Conlin
|
Data Science
Retail Strategy
July 23, 2024 · 3  min

At this point, you’ve probably heard of Amazon DSP, or Demand-Side Platform, a tool that allows both Amazon and non-Amazon retailers to programmatically buy ads to reach new and existing audiences where they spend their time. From its specific retargeting capabilities to its rich reporting and analytic offerings, Amazon DSP gives sellers ample ways to get in front of desired audiences. At Momentum Commerce, we often tout our approach to DSP as one of our unique differentiators. And in typical Momentum Commerce fashion, we have the cold-hard facts and data to prove it.

Momentum Commerce’s approach to recommending and implementing DSP tactics is not a ‘one-size-fits-all.’ While we tailor DSP initiatives based on each brand’s goals, we apply these key differentiators across all clients and campaigns.

 

1. How We Measure Success

The goal of DSP campaigns is to drive long-term impact and brand awareness. We measure this through a variety of metrics that impact both the Total Amazon and D2C business units:

  • Total Branded Search Volume (Glance views, Sessions, etc.)
  • Total Sales Lift
  • Organic Sales Lift
  • Percentage of Organic Sales to Total Sales
  • Total New to Brand Customer Lift

We also run Brand Lift Studies, measuring the statistical significance of brand awareness after implementing various strategies. Testing multiple times allows us to see a true impact on brand awareness, favorability, and ad recall and how certain strategies may affect these measures.

In the example below, you can see organic sales and organic traffic lift for one brand as a result of DSP tactics. In this case, our team discovered that there is a lasting impact when running Streaming TV (STV) in conjunction with a full-funnel ads strategy. As the brand continues to invest in upper-funnel media, there will continue to be growth in organic sales over time.

 

2. How We Utilize Amazon Marketing Cloud (AMC)

Incorporating AMC into our approach is a key part of our strategy. AMC collects rich data across multiple different signals, allowing for a more unified view of customer behavior. Here are some use cases of how we use AMC daily to maximize the efficiency of DSP dollars and achieve goals:

  • Frequency AnalysisHow does the number of served impressions affect engagement and conversion?
  • DaypartingWhat time of day or days of the week should we prioritize bidding and spending?
  • Audience SegmentationWhat are the best segments to reach or exclude by media type, creative type, geographical area, or other attribute?
  • Incremental Reach and Audience OverlapWhat audiences are driving incremental reach? Where is there a high overlap between audiences?
In the example above, an AMC analysis revealed that the Purchase Rate increased by +160% and ROAS by +26% when audiences were exposed to both Search & DSP as opposed to just Sponsored Ads.

 

3. An Upper-Funnel Approach

The primary goal for a DSP campaign should be mass reach and brand awareness, geared at driving traffic to the Product Detail Page (PDP) and Brand Store. We encourage brands to run a full-funnel approach that integrates granular DSP retargeting tactics that aren’t available with Sponsored Display ads. Some common retargeting segments we focus on are:

  • Custom AMC Audiences (Non-Brand Sponsored Ad Clicks, Cart Abandoners, Wish Lists)
  • Brand Store Viewers
  • Prime Video, Sponsored TV, Thursday Night Football Viewers
  • Exclusion of audiences like past purchasers, past browsers

We also utilize DSP in conjunction with Sponsored Display Ads for retargeting. This combination strategy allows us to ensure we are being efficient with media placements, and not over-spending in terms of CPMs. 

 

I believe that DSP and CTV are the way of the future in digital advertising. As it continues to grow, access to Amazon-exclusive data is critical to developing the types of granular strategies we implement here at MC.

– Lexi Anderson, Lead Analyst, Services

Have specific questions about your brand’s DSP initiatives? Reach out to us at hello@momentumcommerce.com