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Mark
James
Amazon DSP
Some Do’s
& Don’ts!
WITH
mark.james@perpetua.io
+44 7709 485758
We give super
powers to anyone
that sells online
Sponsored Ads
Amazon DSP
Perpetua
Amazon DSP
The Amazon DSP enables advertisers to
programmatically buy display, video and
audio ads both on and off Amazon.
You can leverage Amazon's extensive first
party user database to reach highly targeted
audience groups with enhanced creative,
wherever users are shopping online.
Sold on a CPM (cost-per-thousand
impressions) basis.
What is the Amazon DSP?
Invest in building your brand
with a full funnel strategy
How should I use
the targeting
methods available?
What
Targeting
Strategies
should I use?
Competitor Conquesting
Competitor product viewers
Competitor product purchasers
The goal of your upper funnel campaign tactics is to
increase the number of people exposed to your
product and brand in a cost-effective way.
Upper funnel
strategy
Tactic
In-market
Shopper in a given category
Goal Awareness Consideration
KPIs
Impressions
CTR (engagement)
DPVR (level of interest)
eCPCPV (cost per DPV)
Cross-selling
Complimentary product
purchasers
The goal here isn’t just to maximize your ROAS, rather to
continue reaching customers who are on the edge of making
a purchase and to prevent an abandoned cart.
Bottom funnel
strategy
Tactic
Contextual Targeting
In-Aisle Shoppers
Goal Purchase intent Purchase intent
KPIs
ROAS & Total ROAS
CTR DPVR
eCPDPV % NTB
Retargeting
Past purchasers
Purchase Loyalty / LTV
How much
should I spend?
How much
should I spend?
DSP budgets should be
of sponsored spend
1
5
1
3
to
Retargeting should be kept as an
always-on strategy
Allocate ~$1k per product
ROAS
driven campaigns
60/40 distribution between
the upper and lower funnel
30/70 or 40/60 distribution between
the upper and lower funnel
Recommended spend on
Sponsored Ads is at least $30K
Brand
Awareness campaigns
Use remarketing when applicable —
typically for consumables or products
with high repurchase value
Allocate ~$1k per product
Which products
should I push?
1-2 Hero products to start
Product
selection
checklist
High brand affinity products
Search by product type: Which products
receive high brand traffic?
Search by brand name: Are competitors
advertising on your page?
Bonus points if you have:
At least 15 product views
At least 3.5 star rating
Higher price point items
Consumables/repeat purchase items
Some common
challenges
I don’t understand
whether DSP is
working for me
🧐
Always focus on
the metrics that
matter (not just ROAS)
Most pertinent in measuring impact
of top of funnel campaigns
Helps understand the effectiveness of
driving traffic to product pages
eCPDPV
Estimated cost
per detailed
page view
Wide variations from category to
category, expect $0.50 - $2.00
Why is it important?
Purchase clicks valued more than
Purchase views
Allows you to understand purchasing
journey of customers
Why is it important?
Understand the % between the
two over time against strategy +
funnel position
Purchase
views vs.
purchase
clicks
A NTB purchase on a high frequency
item can have a significant LTV
Mid and Top of Funnel
campaigns should be measured on
incrementally and brand building
Why is it important?
Branded Search Volume shows
the effect that DSP has on
increasing awareness
Percentage
of new-to-brand (NTB)
purchases + branded
search volume
My ROAS is low
Retail
insights
report
Understand shopping activity for your brand’s products on Amazon
before, during, and after a display or video advertising campaign
AMC
Track a user's journey
through all ads both
on and off Amazon.
A user is 1.4 times more likely
to purchase after viewing both
an OTT and Display
A user is 1.9 times more likely
to purchase after viewing both an
OTT and a Sponsored Product Ad
A user is 1.9 times more likely
to purchase after viewing both an
OTT and a Sponsored Product Ad
It’s too expensive! 💰
Amazon DSP
Costs to know
Platform fee
● Cost that Amazon charges of
purchasing DSP ads
● Typically 10% of spend (AMG
charges 10%
● Lowest known rate 8%
Agency fee
● Service fee charged by agency
● Typically 10% of spend (AMG
charges 15%)
Both fees are baked into ROAS
performances metrics in DSP reporting
Despite the challenges,
getting it right can
yield impressive results
CPG
CASE STUDY
A Global CPG brand came to
Perpetua to accelerate the transition
of in-store sales to online ahead of
Black Friday and Cyber Monday
In 2 months prior to BFCM, they drove
4.4M impressions and 11,501 detail page views
— an in-store equivalence of around 1,437
customers picking up the product in the digital
aisle per week. We returned a ROAS of 1.84 in
September and October.
51.35%
3.28
0.49%
DPVR
NTB%
ROAS
As we entered November,
their strategy shifted from upper
funnel prospecting, to lower funnel
retargeting and remarketing
efforts. ROAS grew to 11.68.
Success on the DSP takes a time.
DSP operators must know the nuances
of an advertisers’ business and commit
to long term success
Strategic audience building
The three pillars
to success
Meticulous attention to detail
for line Item creation
Push the right products,
use the right metrics
EU DSP
benchmarks
󰎾
Amazon DSP Category
Metrics QoQ
CPM CTR CPC DPVR CPDPV PR NTB PR ROAs
Appliances &
Supplies
$1.62 0.14% $1.17 1.67% $0.10 0.08% 0.06% $11.66
Household CPG $3.36 0.15% $2.17 0.35% $0.95 0.02% 0.01% $1.70
Clothing & Apparel $2.58 0.18% $1.44 2.66% $0.10 0.19% 0.10% $14.86
* Metrics are all averages
Amazon DSP
Performance by Funnel
CPM CTR CPC DPVR CPDPV PR NTB PR ROAs Total
sales
Total
cost
Bottom funnel +50% +8% +38% -21% +90% -15% -9% -41% -47% -10%
Mid funnel +25% +82% -31% +20% +4% -50% 0% -70% +23% +315%
Upper funnel +38% -3% +43% +48% -7% +46% +36% 11% +169% +141%
* Metrics are all averages
CPM CTR CPC DPVR CPDPV PR NTB PR ROAs
Bottom funnel $4.12 0.19% $2.14 2.81% $0.15 0.20% 0.20% $10.35
Mid funnel $3.38 0.25% $1.33 0.87% $0.39 0.05% 0.05% $3.34
Upper funnel $1.96 0.14% $1.37 0.62% $0.32 0.03% 0.03% $3.79

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Brand building with Amazon DSP – how to, AND how NOT to do it | #AmafestUK March,2022

  • 1. Mark James Amazon DSP Some Do’s & Don’ts! WITH mark.james@perpetua.io +44 7709 485758
  • 2. We give super powers to anyone that sells online
  • 3.
  • 7. The Amazon DSP enables advertisers to programmatically buy display, video and audio ads both on and off Amazon. You can leverage Amazon's extensive first party user database to reach highly targeted audience groups with enhanced creative, wherever users are shopping online. Sold on a CPM (cost-per-thousand impressions) basis. What is the Amazon DSP? Invest in building your brand with a full funnel strategy
  • 8. How should I use the targeting methods available?
  • 10. Competitor Conquesting Competitor product viewers Competitor product purchasers The goal of your upper funnel campaign tactics is to increase the number of people exposed to your product and brand in a cost-effective way. Upper funnel strategy Tactic In-market Shopper in a given category Goal Awareness Consideration KPIs Impressions CTR (engagement) DPVR (level of interest) eCPCPV (cost per DPV)
  • 11. Cross-selling Complimentary product purchasers The goal here isn’t just to maximize your ROAS, rather to continue reaching customers who are on the edge of making a purchase and to prevent an abandoned cart. Bottom funnel strategy Tactic Contextual Targeting In-Aisle Shoppers Goal Purchase intent Purchase intent KPIs ROAS & Total ROAS CTR DPVR eCPDPV % NTB Retargeting Past purchasers Purchase Loyalty / LTV
  • 13. How much should I spend? DSP budgets should be of sponsored spend 1 5 1 3 to
  • 14. Retargeting should be kept as an always-on strategy Allocate ~$1k per product ROAS driven campaigns 60/40 distribution between the upper and lower funnel 30/70 or 40/60 distribution between the upper and lower funnel Recommended spend on Sponsored Ads is at least $30K Brand Awareness campaigns Use remarketing when applicable — typically for consumables or products with high repurchase value Allocate ~$1k per product
  • 16. 1-2 Hero products to start Product selection checklist High brand affinity products Search by product type: Which products receive high brand traffic? Search by brand name: Are competitors advertising on your page? Bonus points if you have: At least 15 product views At least 3.5 star rating Higher price point items Consumables/repeat purchase items
  • 18. I don’t understand whether DSP is working for me 🧐
  • 19. Always focus on the metrics that matter (not just ROAS)
  • 20. Most pertinent in measuring impact of top of funnel campaigns Helps understand the effectiveness of driving traffic to product pages eCPDPV Estimated cost per detailed page view Wide variations from category to category, expect $0.50 - $2.00 Why is it important?
  • 21. Purchase clicks valued more than Purchase views Allows you to understand purchasing journey of customers Why is it important? Understand the % between the two over time against strategy + funnel position Purchase views vs. purchase clicks
  • 22. A NTB purchase on a high frequency item can have a significant LTV Mid and Top of Funnel campaigns should be measured on incrementally and brand building Why is it important? Branded Search Volume shows the effect that DSP has on increasing awareness Percentage of new-to-brand (NTB) purchases + branded search volume
  • 23. My ROAS is low
  • 24. Retail insights report Understand shopping activity for your brand’s products on Amazon before, during, and after a display or video advertising campaign
  • 25. AMC Track a user's journey through all ads both on and off Amazon. A user is 1.4 times more likely to purchase after viewing both an OTT and Display A user is 1.9 times more likely to purchase after viewing both an OTT and a Sponsored Product Ad A user is 1.9 times more likely to purchase after viewing both an OTT and a Sponsored Product Ad
  • 27. Amazon DSP Costs to know Platform fee ● Cost that Amazon charges of purchasing DSP ads ● Typically 10% of spend (AMG charges 10% ● Lowest known rate 8% Agency fee ● Service fee charged by agency ● Typically 10% of spend (AMG charges 15%) Both fees are baked into ROAS performances metrics in DSP reporting
  • 28. Despite the challenges, getting it right can yield impressive results
  • 29. CPG CASE STUDY A Global CPG brand came to Perpetua to accelerate the transition of in-store sales to online ahead of Black Friday and Cyber Monday
  • 30. In 2 months prior to BFCM, they drove 4.4M impressions and 11,501 detail page views — an in-store equivalence of around 1,437 customers picking up the product in the digital aisle per week. We returned a ROAS of 1.84 in September and October. 51.35% 3.28 0.49% DPVR NTB% ROAS As we entered November, their strategy shifted from upper funnel prospecting, to lower funnel retargeting and remarketing efforts. ROAS grew to 11.68.
  • 31. Success on the DSP takes a time. DSP operators must know the nuances of an advertisers’ business and commit to long term success Strategic audience building The three pillars to success Meticulous attention to detail for line Item creation Push the right products, use the right metrics
  • 33. Amazon DSP Category Metrics QoQ CPM CTR CPC DPVR CPDPV PR NTB PR ROAs Appliances & Supplies $1.62 0.14% $1.17 1.67% $0.10 0.08% 0.06% $11.66 Household CPG $3.36 0.15% $2.17 0.35% $0.95 0.02% 0.01% $1.70 Clothing & Apparel $2.58 0.18% $1.44 2.66% $0.10 0.19% 0.10% $14.86 * Metrics are all averages
  • 34. Amazon DSP Performance by Funnel CPM CTR CPC DPVR CPDPV PR NTB PR ROAs Total sales Total cost Bottom funnel +50% +8% +38% -21% +90% -15% -9% -41% -47% -10% Mid funnel +25% +82% -31% +20% +4% -50% 0% -70% +23% +315% Upper funnel +38% -3% +43% +48% -7% +46% +36% 11% +169% +141% * Metrics are all averages CPM CTR CPC DPVR CPDPV PR NTB PR ROAs Bottom funnel $4.12 0.19% $2.14 2.81% $0.15 0.20% 0.20% $10.35 Mid funnel $3.38 0.25% $1.33 0.87% $0.39 0.05% 0.05% $3.34 Upper funnel $1.96 0.14% $1.37 0.62% $0.32 0.03% 0.03% $3.79