Amazon Ads expands measurement and targeting capabilities with AMC
Amazon Ads unveils new tools for product launches, audience targeting, and measurement to help brands maximize advertising impact across channels.
On October 15, 2024, Amazon Ads announced a suite of new advertising capabilities at its unBoxed 2024 event in Austin, Texas. The enhancements aim to simplify access to Amazon's insights and optimization tools for advertisers of all sizes across its ad products.
Amazon introduced new product campaigns, a fully-managed service to help brands introduce new items within the first 90 days of launch. These campaigns leverage advertising placements across Amazon properties and partner publishers to drive product discovery.
The coordinated approach allows brands to reach customers with consistent messaging as they move through the purchase funnel. For example, a customer might see an ad for a new espresso machine while streaming Prime Video, hear about its space-saving design on Amazon Music a week later, and then encounter a display ad highlighting its Prime eligibility when shopping on Amazon.
According to Amazon, advertisers using these media plans saw an average 9% increase in weekly sales growth compared to those that did not.
Audience targeting enhancements
To help advertisers re-engage high-value customers, Amazon Ads introduced audience bid boosting for Sponsored Brands and Sponsored Products ads. This feature allows advertisers using Amazon Marketing Cloud (AMC) to adjust bids specifically for audiences who have seen their streaming TV ads or visited their website.
Simplified Insights with AMC Solutions
Amazon Marketing Cloud, the company's secure clean room technology, now offers no-code capabilities through an intuitive interface. This expansion aims to make AMC's sophisticated analytics accessible to brands of all sizes.
Two new AMC solutions were announced:
- High value audience analysis: Visualizes customer base distribution by total spend over time, enabling easy audience segment creation and activation.
- Optimal frequency analysis: Monitors key performance indicators like conversion rate and return on ad spend as ad interactions increase, helping determine efficient frequency caps.
Advanced Attribution and Reporting
Amazon Ads unveiled several new measurement and attribution features:
- Multi-touch attribution model: Uses machine learning to analyze trillions of signals and determine the relative impact of each marketing touchpoint leading to a conversion. This model will begin testing later in 2024, with full rollout planned for 2025.
- Conversion path reporting: Shows advertisers their top-converting paths to purchase from the previous 30 days, highlighting how upper-funnel tactics like TV ads contribute to conversions through lower-funnel channels. This feature will be available in ad console and Amazon DSP reports, with open beta access for U.S. advertisers later this year.
- Long-term sales insights: Estimates potential sales generated over the next year based on how effectively a campaign moves new-to-brand shoppers down the purchase funnel. This metric helps quantify both immediate and long-term returns from driving key customer engagements. Open beta access for U.S. advertisers is expected later this year.
Michal Geller, President of eCommerce & Digital at Newell Brands, commented on their experience with Amazon's new product launch capabilities: "Amazon's full-funnel approach for new product launches has helped us reach customers wherever they are—whether they're watching Prime Video or browsing Amazon."
Key Facts
- Announcement date: October 15, 2024
- Event: unBoxed 2024 in Austin, Texas
- Amazon Ads monthly ad-supported audience: 275 million+ customers across owned and operated properties in the U.S.
- Average number of ad exposures needed before purchase: 20 (according to Boston Consulting Group study)
- Sales growth for advertisers using new product campaigns: 9% increase on average