What is Performance+ and How Does it Work?

Performance+ is a new predictive campaign type in Amazon DSP, launched this year. Performance+ leverages a combination of advertiser data, Amazon’s exclusive consumer data, and machine learning to generate “bespoke predictive audiences.” These audiences are tailored to users with a high likelihood of taking a desired action, such as visiting a brand’s website or making a purchase.

Advertiser Data Integration: Advertisers provide conversion event data from various sources outside of Amazon, such as website visits, call center interactions, or in-store transactions.

Machine Learning and Predictive Audiences: Amazon DSP’s machine learning models analyze advertiser data alongside Amazon’s consumer signals to identify potential customers most likely to convert.

Claire Hall and Will Davenport from Amazon this week recorded a video about Amazon DSP Performance+. Claire and Will explained how Performance+ uses machine learning and automation to create targeted audiences and optimize campaigns, while still giving advertisers control over brand safety, inventory selection, and creative messaging.

Key Benefits and Features of Performance+

• Increased Efficiency: Performance+ automates certain campaign settings, including budget allocation and bidding strategies, aiming to save advertisers time and resources.
• Improved Targeting: By leveraging machine learning and custom audiences, Performance+ aims to deliver higher conversion rates at a lower cost-per-acquisition (CPA).
• Advertiser Control: Despite automation features, advertisers retain control over crucial aspects of their campaigns, including inventory selection, audience suppression, and brand safety measures.
• Transparent Reporting: Performance+ offers detailed reporting that provides insights into campaign performance, inventory quality, and brand safety.

Performance+ Results and Competitive Advantages

According to Amazon Ads, Performance+ has yielded positive results for advertisers across various industries, including financial services, automotive, telecommunications, entertainment, and retail. Here are some key findings from the beta phase (Q3 2023):

• 80% of advertisers achieved their target CPA using Performance+
• On average, beta participants achieved CPAs 73% lower than their targets
• Compared to traditional targeting methods, Performance+ campaigns achieved a 60% lower CPA

Performance+ distinguishes itself from similar solutions by prioritizing transparency and advertiser control. Unlike some “black box” solutions, Performance+ allows advertisers to maintain visibility into campaign processes while leveraging the power of machine learning.

Who Should Use Performance+ and How to Get Started

Performance+ is currently suited for advertisers with the following criteria:

• Campaign goals focused on cost-per-acquisition (CPA) optimization
• Conversion events that occur off of Amazon’s platform (e.g., advertiser website)
• Ability to leverage Amazon’s ad tag, conversion API, or MMP integrations for conversion tracking
• Campaign strategies that incorporate advertising inventory beyond just Amazon properties

Getting Started with Performance+

Advertisers with access to Amazon DSP can create Performance+ campaigns independently. The process involves launching an order with a CPA as the key performance indicator (KPI) and utilizing Amazon’s ad tag or conversion API to track campaign goals.

Performance+ by Amazon DSP offers a promising new approach to campaign management, leveraging automation and machine learning to optimize targeting and conversions for advertisers. While the product is still evolving, its early results and focus on transparency position it as a potentially valuable tool for businesses seeking to streamline their Amazon DSP advertising efforts.

Subscribe to our free weekly LinkedIn newsletter for a weekend roundup, or upgrade to our real-time updates for just $10/year. Get the latest marketing news and insights delivered straight to your inbox.