Amazon is one of the world’s largest online stores, with access to a wealth of buyer trends and behavioural data which can help brands build more effective and profitable strategies. There are many new developments on the platform, including the recent roll-out of a number of new and exciting capabilities. One of the most popular parts of Amazon is the Amazon DSP – but how can it be used more effectively for appealing to new customers?
What is Amazon DSP?
Put simply, Amazon DSP (sometimes better known as Amazon Demand Side Platform) gives brands access to a range of programmatic advertising options, including both display and video ads. These advertising options can be accessed both on and off the Amazon platform itself, giving greater flexibility and scope to advertising projects of all kinds.
The Amazon DSP is used by brands for a wide variety of different outcomes, but most pertinently, it is often used to help boost the performance of campaigns and help ensure that campaigns are more relevant in the first instance. This creates positive outcomes for many different marketing goals, but it is particularly useful for brands who are seeking to appeal to new customers. This is in part due to the ability to advertise off the platform (thus driving more custom to an Amazon store) and partly due to the sheer scope and relevance of the targeting and advertising options available.
For brands who are seeking to ensure they tackle new customer acquisition, the Amazon DSP gives brands transparency and control throughout every stage of the campaign, as in off-platform activities it is only available via trusted websites. In addition, here users will be able to use Amazon’s broad-reaching inventory, wherein Amazon unlocks specific audiences and is capable of blocking other audiences from seeing each ad. No matter what stage of the customer journey is being tackled, Amazon DSP will be able to target it and create ads which break through the rest of the noise to appeal to new customers who may not have previously known about the brand or been eager to make a purchase.
Segment your audience
Amazon DSP remains the most flexible option for advertisers on the platform, particularly when their focus is on acquiring new customers. There are a few different reasons for this, but first and foremost, the DSP is simply the best way to segment audiences. Advertisers have a lot of options in this regard, as they can upload a customer list and begin targeting their campaigns, in a similar style to the capabilities found on advertising platforms such as Google and Facebook. These lists can subsequently be harnessed to create targeting with either positive or negative goals, suggesting that the customers selected can either see or be blocked from seeing adverts under a specific campaign umbrella.
For customers who want to reach new customers, we advise adopting a similar strategy, adding their current list of customers and then excluding them from the campaign. These settings will allow only new customers to see the campaign, and should therefore help advertisers to create more impactful campaigns for this segment. This is one area where Amazon’s extensive data is fantastic for ensuring all activities are relevant and entirely focused. Despite being incredibly promising, there are a few caveats to making a success of this strategy. In particular, it is quite likely that some existing customers will see the adverts, due to changing customer e-mails and issues with matching this data to the user themselves. However, this should prove to be only a minor block and will not prove to be particularly damaging to any campaign activities.
Refine your landing pages
Landing pages are another important aspect of using the Amazon DSP, with a flexible approach which should be taken advantage of for the most impressive results. Many of the ad formats on Amazon demand that landing pages must be product pages or a Stores page. For these ad formats, advertisers will not be able to add customer e-mail addresses to the database. However, Amazon DSP offers a solution.
Using Amazon DSP ads, advertisers and brands will be able to send shoppers directly to a website where they can make a purchase, sharing contact details along the way. Before beginning to create a strategy such as this, it is important that brands check with Amazon to ensure they meet the criteria required to send Amazon traffic elsewhere on the web. The reason it is so important to check is because Amazon does not allow this for all retail outlets, and beginning to compile such a strategy could therefore prove time consuming without yielding results.
Use your new customer insights to improve strategies
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Strategies which centre on acquiring new customers can be achieved with relative ease using Amazon DSP. Campaigns must carefully consider the value of each activity relating to new customers when deciding whether it is worth the initial financial outlay. For this reason, we recommend sticking to a strict budget at first, and perhaps even aiming for a lower ROI than on comparative campaigns. This could ultimately prove to be worth the effort for the sake of getting these customers introduced to the brand and the products on offer, before setting higher targets with subsequent activities.
New-to-Brand metrics are limited only to Amazon itself, but if brand ambitions extend further than the platform itself, there are still ways to achieve even the most ambitious goals. Firstly, we suggest that brands identify which campaigns are producing a greater percentage of sales and setting targets accordingly.
Use New-to-Brand metrics more effectively
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Amazon includes a variety of different reporting tools, each of which can be harnessed by savvy advertisers to produce bigger and better results for brands. One of the most promising new additions in reporting via the platform is New-to-Brand metrics, which is now available on Sponsored Brands, as well as display and video advertising. In essence, this metric is designed to help brands discover whether purchases which are attributed to advertising efforts were made by a customer who is a recent acquisition or an established customer. The metric identifies whether they have purchased from the brand before in the last twelve months, and can help advertisers understand more about their campaign results in a helpful and infinitely measurable way.
These metrics only apply within the Amazon platform, so it is impossible to use New-to-Brand to check whether a user has purchased from the same brand off-Amazon. The metrics include a variety of different New-to-Brand data, including new sales, new orders and the percentage of sales and orders which can be attributed as new to the brand. In addition, advertisers are also able to see the cost for each New-to-Brand customer, making it simpler to understand how much profit is being generated at this level.
To break it down even further, the primary indicators which are available allow users to access data on:
This data provides information on the purchases which have been made for promoted products within a certain brand for the first time during the twelve month window.
This data gives users information on the promoted brand products which have been purchased in the last year following an advert.
New-to-Brand purchase rates
This data encompasses the number of new purchases for products alongside the ads which have been displayed. It includes both purchases and ad impressions.
Overall New-to-Brand purchases
Users can also see the total number of sales of products which are accepted under the new-to-brand criteria.
How do I use New-to-Brand data?
There are many different ways to use New-to-Brand as a means of understanding these new customers, and everything that motivates them to make a purchase. However to ensure the most accurate figures, we do have a few top tips which should make understanding and harnessing the data a little easier.
First and foremost, ensure all ad campaigns where you want to use New-to-Brand metrics have been active for at least a fortnight before you begin making any adjustments to your existing ads. Without this 14-day window of data, you will have no real basis for making changes, and could end up ultimately doing more harm than good to your bottom line. Once you have the data you need, you can start to optimise your adverts. Be sure to look at which items have been generating the most new orders from new customers, and begin to delve into the reasons why this may be.
There are many different factors which are often at play when customers make a purchase. They can include everything from the audience who were being targeted to the look and feel of the advert itself. Knowing your way around New-to-Brand is the first step to generating even more New-to-Brand sales, and ultimately retaining some of these customers for future purchases.
As with so many areas of Amazon DSP, it is important that you monitor these metrics and adjust them as required – but only once there is enough data available for it to be worthwhile.
The post Are you using Amazon DSP effectively for new customer acquisition? appeared first on prReach Blog.
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