Podcast
Learn from Fast Growing 7-8 Figure Online Retailers and eCommerce Experts
Amazon DSP: Using Amazon’s 1st-Party Audience Data for Media Buying
About the guests
Kimberly Maggard
Kimberly Maggard is Team Leader Programmatic Advertising at factor-a. As part of Dept, they support globally active manufacturers and brands in the operational marketplace management on Amazon. The goal is the sustainable increase in sales and market share as well as the creation of transparency for the optimal control of all success-critical measures.
On today’s episode, Kunle is joined by Kimberly Maggard, Programmatic Advertiser at factor-a, a pioneer in Amazon vendor management with the combination of technology and agency performance working with over 100 international top brands.
With the upcoming changes in the media buying landscape, many brands are adapting their strategies and considering alternatives. One such alternative is Amazon Demand Side Platform (DSP). It is practically unscathed by the upcoming changes as almost all of its data is first party.
We’ve all shopped on Amazon, some more than others. This has made it a trusted choice for people the world over. Just to put things in perspective, upto 60% of product searches in the UK BEGIN on Amazon. That’s a lot of data with a fair amount of segmentation built in. But should DTC brands jump on the bandwagon?
In this episode, Kunle and Kimberly talk about all things Amazon DSP. You will get to hear about how the platform is structured, how the segmentation works, the media buying process and how DTC brands can get in on it . This is a great episode for marketers and business owners alike!
Here is a summary of some of the most important points made,
-
- Changes to 3rd party cookie data won’t affect Amazon DSP
- Amazon DSP works on a CPM model
- It is possible to measure conversions on Amazon for ads served off Amazon
- You can advertise services or products that aren’t otherwise available on Amazon
- Amazon wants conversions to happen on Amazon, so BOFU activity is restricted
Covered Topics:
On today’s interview Kunle and Kimberly discuss,
- What is Amazon DSP
- Segmentation
- Google Ads vs Amazon DSP
- Down sides
- Using DSP as a DTC brand
- Retargeting
Timestamp:
- 10:20 – Meet Kimberly and factor-a:
- 5 years old company based in Germany
- Over 100 employees strong
- Serve a global market of brands
- 12:05 – What is Amazon DSP?
- Demand Side Platform
- Similar to Google search
- DSP is fairly new
- CPM based
- Used for TOFU and MOFU activities on Amazon
- Customer purchase behaviour oriented
- 14:38 – Segmentation:
- Lookalike audiences
- Amazon places you in many larger segments as per buying history
- 15:35 – Amazon DSP in post cookie world:
- Segmentation will continue to work well because it’s 1st party data for Amazon
- “99% of data used is first party data”
- 16:25 – Buying Media:
- Works similar to Google ads
- There is a auction system
- Ads are shown offsite in the same spaces like Google ads
- 17:50 – Google Ads vs Amazon DSP
- Misconception as a LOFU channel
- A/B testing to check where your converting customers come from
- 19:55 – Reporting & Attribution:
- Possible to measure conversions on Amazon for ads served off Amazon
- Service called Amazon Attribution Data – still in Beta
- “Spend money where the conversions are happening”
- “60% of product searches begin on Amazon”
- 23:40 – Why customers prefer buying on Amazon over websites
- 26:45 – Does Retargeting work?
- Pixel retargeting works
- Amazon has rules regarding “linking out” campaigns
- DTC campaigns tend to be MOFU
- Amazon wants conversions to happen on Amazon, so BOFU activity is restricted
- 33:50 – The flipside, why DTC may not want to sell on Amazon:
- Loss of control on Data and Pricing
- Competition from Amazon for same products
- Hidden or Additional fees
- Loss of branding
- “Fear of Amazon knocking off your product is overinflated”
- 39:30 – Using DSP as a DTC brand
- Amazon doesn’t allow ads if you sell similar products on your own site
- You can advertise services or products that aren’t otherwise available on Amazon
- 42:50 – Using exclusions in your targeting
Takeaways:
- 60% of product searches begin on Amazon
- DTC campaigns tend to be MOFU
- 99% of data used is first party data
- Amazon DSP works on a CPM model
- It is possible to measure conversions on Amazon for ads served off Amazon
Links & Resources
Tweetable Quotes:
“Spend money where the conversions are happening.”
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About the host: Kunle Campbell
An ecommerce advisor to ambitious, agile online retailers and funded ecommerce startups seeking exponentially sales growth through scalable customer acquisition, retention, conversion optimisation, product/market fit optimisation and customer referrals.
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