The primary goal of any e-commerce brand owner or Amazon advertiser is to build awareness and drive sales.
However, with the massive shift in consumer behavior and the deprecation of third-party cookies, advertisers across the globe are scrambled to find answers to the basic questions, such as:
Amazon Marketing Cloud (AMC) solves this challenge by providing detailed aggregated data solutions to advertisers.
This article will explain what Amazon Marketing Cloud is and how you can use it to drive data-driven business decisions.
A quick peek into the article:
In today’s day and age, data is everything.
For the past several years, advertisers have been measuring the success of their cross-channel campaigns through web cookies.
However, as browsers began to block third-party cookies, it became a struggle for advertisers to measure conversions across multiple channels and make data-driven decisions.
To address the challenge, Amazon launched the Amazon Marketing Cloud (AMC) in 2021 – a secure, privacy-safe cloud-based solution where advertisers can easily perform analytics across multiple channels and understand their customer’s shopping journey on and off Amazon.
The AMC report combines Amazon Ad Campaign data like impressions, clicks, and conversions and advertisers’ own data sets to give you a holistic view of campaign performance.
Recommended read: How can you effectively analyze Amazon Data over time?
Amazon Marketing Cloud is designed to maintain end-users’ privacy, so it does not show user-level data. Instead, it groups the actions of 100 unique users and shows the aggregated data to the advertisers. It allows you to understand the customers’ journey while still protecting their private data.
With AMC, brands can get a deeper insight into audience behavior and measure the impact of their full-funnel marketing strategies.
To learn more about Amazon Marketing Cloud, watch this guide:
With countless amounts of data on AMC, it can get cluttered really quickly. We recommend establishing a business goal or identifying a problem first and then working backward to solve the problem through the AMC insights.
For example, let’s say you’re a fashion retailer planning to launch a new summer clothing line on Amazon. You can use Amazon Marketing Cloud to get access to the granular demographic data of past customers, most-searched keywords, buying behavior, etc. And with this information, create a data-driven product launch strategy that gets you in front of your target customers and brings in maximum sales.
Here are some of the insights you can get from Amazon Marketing Cloud:
Note: Initially, you can see the advertising data for the past 28 days. From then on, the data is stored in AWS for up to a year, and you can analyze the data any time you want. Amazon Marketing Cloud has also recently integrated with Sponsored Brands. It gives you several benefits, including:
Recommended guide: How to optimize ads with AMC and Amazon Ad Server?
If you fulfill all the requirements for Amazon Marketing Cloud, go to this page and start the application process.
First, select your country, fill out the contact form, and submit.
After that, the account manager from the Amazon Marketing Cloud team will contact you to set up your AMC account. It can take up to three to five business days.
Amazon Marketing Cloud is not accessible to everyone. Advertisers or brands need to have an Amazon DSP account to be eligible for Amazon Marketing Cloud.
Here are some requirements for using Amazon Marketing Cloud:
Now that you understand how AMC works, let’s understand some tangible ways you can use AMC today:
Use AMC to assess the total number of consumers who were exposed to your brands’ ads at different stages of the marketing funnel – from awareness to consideration to conversion.
It enables you to understand the impact of advertising efforts on different audience segments and refine strategy to maximize reach.
Also, create custom audience segments based on various criteria, such as purchase history, browsing activity, product affinity, and loyalty status, using AMC to improve your targeting.
With AMC, you get clarity on new-to-brand customer insights for Sponsored Products and DSP campaigns.
For example, let’s say you have a Sponsored Product campaign with low ROAS. But when you analyze with Amazon Marketing Cloud, you see that 70% of sales on this campaign come from new-to-brand customers. Also, if you see the NTB customers have, on average, five repeat purchases, then suddenly, the campaign starts to look good.
Amazon Marketing Cloud also enables you to identify ASINs that act as “gateway products” – meaning the products that shoppers purchase from the brand for the first time.
With this insight, you can allocate advertising budgets to these ASINs to generate maximum new-to-brand sales and acquire market share. Alternatively, you can pair them up with your new launches and increase sales through upselling.
AMC can also help you identify the designated market areas from where your products get the maximum number of repeat purchases from new-to-brand customers.
Launch targeted Amazon DSP campaigns in these regions to expand the reach and generate more new-to-brand customers. It increases ROAS and reduces customer acquisition costs in those regions.
Amazon Marketing Cloud provides a more transparent way for you to analyze the impact of different ad campaigns on conversion rates with the help of custom attribution models.
For example, let’s say you’ve seen that running a combination of Product Targeting ads and Sponsored Display ads generates a significantly higher conversion rate than using either campaign type alone. You can use this information to devise a comprehensive ad strategy to increase sales without wasting ad budget on other types of campaigns.
Now that we’ve explored different use cases of AMC, let’s delve into a comparison between the reporting feature for two prominent tools, Amazon Marketing Cloud (AMC) and Amazon DSP
|Amazon Marketing Cloud Reporting
|Amazon DSP Reporting
|Can report on cross-channel media performance
|Can report on media performance of ads bought through Amazon DSP
|Complements the reporting capabilities available in Amazon DSP
|Provides pre-aggregated standard metrics
|Reports are outputs of SQL query-based analysis
|Reports are delivered via Amazon DSP console on-demand or through API
Amazon Marketing Cloud is an exciting update for brands, whose advertising strategy involves a mix of multiple platforms and channels, such as Sponsored Ads and Amazon DSP.
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