Amazon Marketing Cloud unveils high value audiences solution
Amazon Marketing Cloud (AMC) recently introduced a new solution called High Value Audiences. This solution aims to simplify the process of identifying and targeting high-value customers for advertisers on Amazon.
Amazon Marketing Cloud (AMC) recently introduced a new solution called High Value Audiences. This solution aims to simplify the process of identifying and targeting high-value customers for advertisers on Amazon.
What are AMC Solutions?
Launched in late 2023, AMC Solutions are a suite of marketing tools designed for businesses advertising on Amazon. These solutions are intended to be user-friendly and require no coding knowledge. They guide users through the process of analyzing customer data, generating insights, and activating those insights into targeted advertising campaigns.
High Value Audiences: Identifying Your Most Valuable Customers
The High Value Audiences solution specifically addresses the challenge of identifying a brand's most valuable customers. According to a report by the Boston Consulting Group, acquiring a new customer can cost five times more than retaining an existing one. High Value Audiences helps advertisers leverage Amazon's vast customer data to create targeted audiences of their most valuable customers.
How Does High Value Audiences Work?
The High Value Audiences solution utilizes a straightforward process:
- Data Selection: Advertisers can choose a timeframe to analyze customer data, such as the last month or quarter.
- Customer Value Insights: High Value Audiences categorizes customers into percentile buckets based on their historical spending on the advertiser's brand(s). This allows advertisers to understand which customer segments contribute the most to their overall revenue.
- Audience Filtering: Advertisers can filter the audience based on various criteria beyond just spending percentiles. Examples include filtering for new customers or those previously exposed to the advertiser's ads.
- Audience Creation: Once the desired audience is defined, High Value Audiences allows advertisers to create two main types of audiences: lookalike audiences and rule-based audiences.
- Lookalike audiences leverage existing customer data to identify new customers with similar characteristics. This can be a powerful tool for expanding reach beyond the advertiser's current customer base.
- Rule-based audiences allow for more granular control. Advertisers can define specific rules based on demographics, purchase history, browsing behavior, and other factors to create highly targeted audience segments.
Activation and Measurement
Once an audience is created, it typically takes 48 hours for it to become available for activation on Amazon DSP (Demand-Side Platform). This platform allows advertisers to programmatically buy ad inventory across various channels, including Amazon-owned properties and external websites.
Benefits of High Value Audiences
By leveraging High Value Audiences, advertisers can potentially:
- Increase Return on Ad Spend (ROAS): Focusing on high-value customer segments can lead to more efficient ad campaigns with a higher return on investment.
- Improve Customer Lifetime Value (CLTV): By targeting and engaging high-value customers, advertisers may nurture stronger customer relationships and encourage repeat purchases.
- Expand Reach to Similar Customers: Lookalike audiences can help advertisers identify new customers with a high likelihood of converting.
More information about AMC Solutions, including the High Value Audiences solution, can be found within the AMC user interface (UI) in the "Solutions" tab and the AMC learning console.
A Potential Tool for Improving Campaign Performance
The High Value Audiences solution can be a valuable tool for Amazon advertisers. By simplifying customer data analysis and audience creation, this solution can potentially help advertisers improve the efficiency and effectiveness of their advertising campaigns.
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