Table of Contents
- Introduction
- Understanding Amazon Marketing Cloud
- Leveraging Amazon Marketing Cloud
- Capitalizing on Amazon Marketing Cloud
- Conclusion
- FAQ
Introduction
In an ever-evolving marketplace where competition is intense, standing out on Amazon is more critical than ever. With over 600 million products in its vast inventory as of 2023, according to Capital One Shopping Research, brands need to leverage every possible advantage to engage and convert consumers effectively. Within this bustling ecosystem, data emerges as the paramount asset for making informed decisions. Until recently, activating customer data within Amazon's tightly guarded environment posed significant challenges. This scenario is rapidly changing with the introduction of the Amazon Marketing Cloud (AMC).
The significance of AMC lies in its potential to revolutionize how brands access and utilize customer data to enhance campaign performance and profitability. Ross Walker from Acadia, a digital agency recognized for its proficiency in retail media and marketplaces, sheds light on effective strategies for utilizing AMC. By integrating holistic advertising insights, AMC can help brands win on Amazon.
In this blog post, we will delve into how brands can utilize AMC to understand campaign performance drivers, build custom audiences, upsell customers, optimize Amazon DSP spending, and better comprehend new customer behaviors. Read on to uncover actionable insights that can drive your brand's success on Amazon.
Understanding Amazon Marketing Cloud
What Is Amazon Marketing Cloud?
Launched in 2021, Amazon Marketing Cloud is a secure, cloud-based cleanroom solution that arms brands with comprehensive advertising insights. It enables sellers to explore and analyze customer data which was previously beyond reach within Amazon's platform. AMC functions as an open database where brands can query and gain detailed insights into their advertising efforts across various channels—from sponsored products to demand-side platforms (DSP) and streaming TV investments.
Accessibility and Usability
Leaning on AMC doesn't require a technical wizardry. While users proficient in Structured Query Language (SQL) can craft intricate data queries, Amazon accommodates all users with a set of pre-made templated queries. These templates help brands access crucial insights easily, making the tool accessible for everyone, from tech-savvy marketers to beginners.
Leveraging Amazon Marketing Cloud
1. Understand Campaign Performance Drivers
One major advantage of AMC is its ability to reveal how investments in one part of a business impact other campaigns. For instance, if an ecommerce manager increases DSP spending, AMC can illustrate the resultant effect on sponsored content campaigns.
Executives can pinpoint which products are attracting new customers, offering valuable insights into future product development. For ecommerce managers, AMC provides a roadmap of campaign effectiveness, guiding where budget allocations can be optimized for maximum impact.
2. Build Custom Audiences
AMC provides brands with the capability to build tailored audience segments. For example, identifying customers exposed to specific campaigns who didn't convert allows brands to retarget these segments more effectively. This approach is particularly potent for upper-funnel campaigns on streaming TV. Brands can follow up with ecommerce-focused ads to those who viewed their streaming ads, thereby boosting overall return on ad spend (ROAS).
3. Upsell Customers
Understanding consumer behavior is pivotal for upselling. AMC generates analytics, such as the “Ace and Overlap Report for Upselling,” offering insights into the likelihood of customers making additional purchases based on their initial buys. Brands can use this data to create strategic product bundles likely to attract repeat purchases, maximizing customer lifetime value.
4. Optimize Amazon DSP Spending
Combining AMC's analytical prowess with Amazon DSP can yield significant benefits. Brands can upload their customer relationship management (CRM) data into AMC, where it is anonymized. This practice enhances visibility into each audience's purchase path without compromising proprietary data. Brands can also leverage timing insights to optimize ad performance, aligning campaigns with peak conversion times.
5. Better Understand New Customers
Metrics for new-to-brand customers have expanded beyond sponsored brands and display ads to include search ads, encompassing roughly 80% of Amazon ad investments. With AMC, brands can now measure the effectiveness of all these campaigns in driving new customer acquisition. This comprehensive view enables brands to scale successful campaigns, significantly boosting overall revenue.
Capitalizing on Amazon Marketing Cloud
Initial Steps
Brands aiming to extract maximum value from AMC should focus on building internal capabilities to analyze the unique data the solution provides. Setting up essential monthly queries—such as tracking the customer path to purchase and new-to-brand metrics—will furnish brands with critical insights.
Ongoing Optimization
AMC's insights should be integral to regular monthly account reviews. Brands can either foster these capabilities in-house or collaborate with knowledgeable agency partners. This ensures they're continually informed about new data and queries available within AMC, thereby unlocking the full potential of the tool.
Long-term Planning
The ultimate aim is to use these insights to create and fine-tune marketing strategies that are aligned with customer behaviors and preferences. Brands that remain agile and responsive to the continuous flow of data will see substantial improvements in their campaign performances and overall profitability.
Conclusion
Amazon Marketing Cloud represents a game-changing tool for brands seeking to thrive on Amazon's competitive platform. By leveraging the detailed insights provided by AMC, brands can enhance their understanding of customer behavior, optimize their advertising campaigns, and ultimately drive more significant sales and profitability.
From understanding campaign performance drivers and building custom audiences to upselling and optimizing DSP efforts—AMC offers a multitude of advantages. With dedicated investment in understanding and utilizing AMC's features, brands can transform their approach to Amazon marketing, setting the stage for success in 2024 and beyond.
FAQ
What is Amazon Marketing Cloud?
Amazon Marketing Cloud (AMC) is a secure, cloud-based cleanroom solution that provides brands with comprehensive advertising insights across Amazon's platform.
How can Amazon Marketing Cloud help in understanding campaign performance?
AMC allows brands to analyze how investments in different areas affect each other, providing deeper insights into which campaigns drive conversions and customer acquisition.
Can I use AMC if I'm not proficient in SQL?
Yes, even though advanced users can create custom queries using SQL, Amazon provides templated queries allowing all users to access critical insights.
How does AMC enhance upselling efforts?
AMC provides analytics, such as the “Ace and Overlap Report for Upselling,” which helps brands identify products that customers are likely to purchase together, aiding in creating effective upselling strategies.
How does AMC improve Amazon DSP efficiency?
By uploading CRM data, AMC anonymizes it and provides insights into audience behavior, helping brands to optimize ad spend and timing for better results.
What metrics does AMC provide for new customer acquisition?
AMC now includes metrics for search ads, expanding the scope of new-to-brand customer insights beyond sponsored brands and display ads, covering approximately 80% of Amazon ad investments.
