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SUCCESS STORY

Amazon Ads: How to define the most effective advertising mix?

Leveraging Amazon Marketing Cloud data for Philips Hue

The challenge

Our client Philips Hue activates digital campaigns on Amazon via various levers:

  • Sponsored ads, for visibility on the market place
  • Display and video campaigns via Amazon DSP, to target people who have interacted with the brand, or to set up audience extensions by activating Amazon’s retail data.

Until now, these parallel activations were analyzed separately. But to continue to grow the brand on the platform and to develop sales, we needed to understand:

  • How do our different activations come into contact?
  • What synergies are created by these different activations?
  • What is the contribution of each of the levers activated?

The solution

Amazon’s new Clean Room, Amazon Marketing Cloud, removes the barriers to measurement by bringing together for the first time multiple sources of activation data within a single study perimeter. To this end, we have developed customized studies, drawing in particular on our strong expertise in data science.

Our teams of data scientists and traders have developed a suite of customized studies to better understand the results and impacts of different campaigns, and to define activatable insights for our client Philips Hue:

  • A study on reach and the overlap of exposures and conversions between our on-site visibility activations and our display and video activations
  • A multi-lever study to determine the impact of exposure to one or more levers on the conversion rate
  • A study to understand the impact of the position of each lever in the conversion path, in order to determine the relevance of the chosen levers and the best combination to lead to conversion.

We therefore analyzed the overlap of our various activation levers across the funnel over the course of a month.

Results

The first study shows that our display and video activations considerably extend the overall reach of campaigns, and that they do not target the audience reached by on-site visibility campaigns. It also shows that display activation is involved in almost all conversions.

The second study shows that 90% of targets are single-levers, while over 50% of purchases come from people who have been reached by at least 2 levers. This study also shows that the breakdown of purchases by lever is more or less the same for old and new buyers.

This latest study shows that in the top 3 conversion paths, every conversion journey begins with display exposure.

The best path to conversion is therefore made up first of a display exposure, followed by a video exposure and finally an on-site exposure to sponsored products, probably following a search on the store.

The combination of these three studies enables us to clearly establish the impact of the different levers on conversion.

This study thus enabled us to determine the best conversion paths in order to fine-tune budget management for the coming year and for the festive season.

Key features

10 %

of people exposed to Sponsored Ads were also exposed to Display

x5.5

purchase rate with exposure to complementary ad formats

+50 %

of purchases are generated by people who have been reached by at least 2 levers