Challenge

A renowned portable power generator brand faced challenges in comprehending the efficacy and returns from their Amazon advertising initiatives. They had questions concerning the synergy between Demand Side Platform (DSP) and Sponsored Products (SP), the contribution of DSP to the overall sales growth and optimal budget allocation without increasing the total budget. The brand aimed to accomplish higher target audience coverage and sales by augmenting their DSP budget.

Objective

The overarching objective was to enhance audience coverage and stimulate sales growth through a strategic increase in the DSP budget. This goal was underpinned by three core questions:

  1. Are DSP and SP working synergistically to optimize advertising performance?
  2. Is the increased investment in DSP contributing to overall sales growth?
  3. How can the brand achieve optimal budget allocation within the existing budget?

Approach and Solution

Through a comprehensive analysis, the following key insights were unveiled:

  • 17% of the reached audience was targeted by both DSP and SP.
  • The introduction of Firetablet as a new traffic channel broadened the traffic pool.
  • The conversion rate of the audience reached by both DSP and SP was remarkably higher (55 times) than the audience reached by SP alone, escalating Return on Ad Spend (ROAS) by 3.6-4.6 times.

Using these insights, a strategic approach was adopted:

  • Launch campaigns continuously across multiple advertising channels to ensure a broader audience reach.
  • Utilize DSP's Amazon Audience Creation feature during the promotional phase to retarget the audience who have interacted with SP ads.


Overlap Analysis

DSP and SP targeting overlapped for 17% of the audience, and the audience pool was further expanded by Firetablet. Notably, audiences exposed to both DSP and SP demonstrated 3.6-4.6 times higher ROAS compared to SP-only audiences.

Path to Conversion Analysis

The analysis revealed that the highest conversion rate was attributed to DSP-initiated ads, accounting for 71% of all purchasers. In fact,75% of sales were completed via conversion. Due to the high price of the products, most users exhibited proactive research behavior before making a purchase.

MTA Based Budget Allocation

A Multi-Touch Attribution (MTA) analysis was performed using Markov Chain modeling. The analysis showed that by increasing the proportion of the DSP advertising budget to 64%—while keeping the total budget constant—total sales could potentially rise by 44.5%.

Results

Given the findings, the brand decided to increase the upper-level traffic of DSP ads to stimulate brand searches, and use DSP conversion ads to track the brand search audience for potent conversion.

As a result, DSP attained 16% higher ROAS, contributing to an impressive 99% sales growth for the brand!

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