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    Amazon Unveils Simplified Product Launch, Optimization, and Measurement Solutions for Full-funnel Performance

    10/15/24 10:00:00 AM ET
    $AMZN
    Catalog/Specialty Distribution
    Consumer Discretionary
    Get the next $AMZN alert in real time by email

    Amazon Ads announced several new capabilities that leverage its deep, full-funnel insights to help brands launch new products and extend its sophisticated measurement and optimization ad tech to all advertisers

    (NASDAQ:AMZN) — At unBoxed 2024, Amazon Ads launched a suite of new advertising capabilities that bring together insights from across the marketing funnel to help advertisers optimize their media investments. The announcements showcased how Amazon Ads is making its powerful insights easier to access and activate by every advertiser, across every ad product.

    "Our mission is to be the most customer-obsessed advertising service by giving all brands the measurement and data-driven, machine learning optimization capabilities they need to drive business growth through simple, easy-to-use tools," said Paula Despins, Vice President of Ads Measurement at Amazon Ads. "Today's launches put our most sophisticated full-funnel measurement and optimization capabilities into the hands of all marketers from small businesses to major brands."

    Accelerate new product launches and reach high-value customers

    As a leading destination for product discovery, Amazon has a unique ability to help brands successfully launch new products. New product campaigns are a fully-managed service that help brands quickly introduce new products to customers within the first 90 days of their launch, through advertising placements across Amazon's properties and leading broadcasters and publishers.

    New product campaigns help customers discover and learn about new products through clear and consistent messaging in the places they're choosing to spend time – so that they can move from awareness, to consideration, to purchasing great products they want or need. For example, a customer could see an ad for an easy-to-use espresso machine while watching Prime Video. A week or so later, the customer may hear an ad for that espresso machine on Amazon Music and learn it's designed to save counter space. The next time they're shopping in the Amazon store, they may see a display ad for the same espresso machine that highlights it's Prime-eligible. At this point the customer is more familiar with the product, putting them that much closer to a purchase. Advertisers using these media plans saw a 9% increase in their weekly sales growth on average compared to those that did not.

    Once a product is launched advertisers need solutions that enable them to both continue acquiring new customers and engaging prospective customers as they move through the funnel, on an ongoing basis. According to a study by Boston Consulting Group, on average, advertisers need to reach customers at least 20 times before they make a purchase. To help advertisers do this more efficiently, Amazon Ads has audience bid boosting to re-engage shoppers reached on streaming TV through Sponsored Brands and Sponsored Products ads. Advertisers using Amazon Marketing Cloud (AMC), Amazon Ads secure clean room technology, can now adjust their Sponsored Brands and Sponsored Products bids specifically for audiences who have seen their streaming TV ads and also visited their website, for example, focusing their investments on these high-value customers.

    "For over a century, Newell Brands' products have been a trusted presence in households around the world. When we launched our latest products, we knew we needed a strategy that could effectively reach audiences across multiple platforms, and partnering with Amazon Ads made that possible. 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," said Michal Geller, President of eCommerce & Digital at Newell Brands.

    Simplify insights with AMC solutions

    AMC enables advertisers to join their first-party data with Amazon Ads signals to understand the customer journey and build and activate audiences. New AMC solutions introduce no-code capabilities in an intuitive interface – extending AMC's sophisticated analytics capabilities to brands of all sizes. Now any Amazon advertiser can use AMC to quickly uncover advanced audience and measurement insights, and optimize their campaigns.

    The first two AMC solutions launching are high value audience and optimal frequency analyses. Brands can use the high value solution to instantly visualize how their customer base is distributed by total spend levels over a period of time. With just a few clicks they can create related audience segments and activate them in future campaigns. With the optimal frequency solution, advertisers can monitor how KPIs like conversion rate and return on ad spend evolve as ad interactions increase, and from there, determine the most efficient frequency caps for their campaign.

    Honest Kitchen, a CPG brand, used the optimal frequency AMC solution to improve their Amazon DSP campaign performance. After better understanding their cross-campaign ad frequency, Honest Kitchen was able to adjust their daily frequency caps to increase their impressions by 23% and Amazon.com product detail page views by 44% – all while maintaining nearly the same budget.

    Measure attribution, report on conversion paths, and project long-term sales

    Amazon Ads announced a new multi-touch attribution model that helps advertisers understand how their marketing works to drive conversions, going beyond last touch attribution to consider the relative contribution of each marketing touchpoint leading to a conversion. Using advanced machine learning models to analyze trillions of shopping, streaming, and browsing signals, multi-touch attribution determines the relative impact of ad interactions along the path to purchase. It uses advanced techniques like hundreds of thousands of randomized control trial experiments – A/B tests – to establish impact. For example, if an advertiser uses streaming TV, display, Sponsored Products, and other ad types in their campaigns, multi-touch attribution will show the relative contribution of each tactic to their sales. Amazon Ads will start to test multi-touch attribution later this year, with a full rollout planned for 2025.

    To help advertisers understand the insights from multi-touch attribution, Amazon Ads is launching conversion path reporting to show brands their top-converting paths to purchase from the previous 30-days. For example, advertisers might see their TV ad is showing in their top-converting paths and learn how it helped drive conversions through lower funnel channels. Conversion path reporting is AMC's most popular insight report and it will soon be available self-service in ad console and Amazon DSP reports. It is currently in closed beta and will be available to U.S. advertisers in open beta later this year.

    Advertisers also want to measure beyond immediate sales and understand the long-term impact of their upper-funnel tactics on outcomes. Long term sales insights estimate the sales that a brand can expect to generate over the next year based on how effectively their campaign moves new-to-brand shoppers down the purchase funnel. For example, a customer may click on an ad and engage with a brand for the first time by visiting their product page, and go on to purchase from that brand months later. With long-term sales insights, that campaign now receives credit for the new product page visit based on the historical outcome from customers who have also visited a product page. Together, immediate sales and long-term sales metrics help advertisers quantify immediate sales and potential return from driving key customer engagements throughout the funnel. Long-term sales insights are currently in closed beta and will be available to U.S. advertisers in open beta later this year.

    To learn more about all of the announcements at unBoxed 2024, go to ads.amazon.com.

    About Amazon Ads

    Amazon Ads offers full-funnel advertising solutions to help businesses of all sizes achieve their marketing goals at scale. Amazon Ads connects advertisers to highly relevant audiences through first-party insights; extensive reach across premium content like Prime Video, Twitch, and third-party publishers; the ability to connect and directly measure campaign tactics across awareness, consideration, and conversion; and generative AI to deliver appropriate creative at each step. Amazon Ads reaches a monthly ad-supported audience of 275 million+ customers across owned and operated properties in the U.S. For more information, please visit ads.amazon.com.

    About Amazon

    Amazon is guided by four principles: customer obsession rather than competitor focus, passion for invention, commitment to operational excellence, and long-term thinking. Amazon strives to be Earth's Most Customer-Centric Company, Earth's Best Employer, and Earth's Safest Place to Work. Customer reviews, 1-Click shopping, personalized recommendations, Prime, Fulfillment by Amazon, AWS, Kindle Direct Publishing, Kindle, Career Choice, Fire tablets, Fire TV, Amazon Echo, Alexa, Just Walk Out technology, Amazon Studios, and The Climate Pledge are some of the things pioneered by Amazon. For more information, visit amazon.com/about and follow @AmazonNews.

    View source version on businesswire.com: https://www.businesswire.com/news/home/20241015145049/en/

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