How Can We Unleash the Power of Amazon Marketing Cloud for CPG Brands?
Mert Damlapinar
Empowering CPGs with strategy & tech solutions in digital commerce, MarTech, AI, retail media, digital shelf. ex. L’Oreal, Mondelēz, Sabra/PepsiCo | Advisory Board, Speaker, Investor, Author | Amsterdam & New York
Unleashing the Power of Amazon Marketing Cloud for CPG Brands
In the fast-paced world of FMCG (Fast-Moving Consumer Goods) brands, harnessing the power of data-driven insights is paramount to driving effective advertising and marketing strategies. As digital advertising evolves, CPG brands seek advanced tools that provide actionable insights and a holistic view of their campaigns. Amazon Marketing Cloud (AMC) is a revolutionary solution built on Amazon Web Services (AWS) that offers CPG brands unparalleled access to comprehensive data analytics.
#AMC is a dedicated cloud-based measurement and #analytics solution provided by #Amazon. It aims to help advertisers gather transparent, cross-channel data to make informed decisions about their marketing campaigns. With the increasing challenges in measuring conversions and accessing information due to browsers blocking third-party cookies, AMC offers advertisers a way to overcome these hurdles by providing analytics beyond traditional reports.
AMC allows advertisers to generate aggregated reports based on their data sets and Amazon Advertising campaign events across Amazon DSP, Sizmek Ad Suite, and Amazon Sponsored Ads. It offers unique reporting and analytics tailored to each advertiser's goals, channels, audience, and messaging. This enables advertisers to measure the impact of their advertising efforts across channels, both on and off Amazon, creating a comprehensive reporting environment.
Let me explore how AMC can benefit FMCG brands and their advertising or marketing teams, highlighting the actionable insights it provides and the potential questions it can answer.
1. Understanding Consumer Behavior:
Consumer behavior lies at the heart of successful CPG marketing. AMC empowers CPG brands to delve deep into consumer insights, enabling them to tailor their marketing efforts for maximum impact. With AMC, brands can answer critical questions such as:
? Who are the most engaged audiences for our products? What are their demographics, interests, and purchasing habits?
? In which geographies are our brand or products most viewed and purchased? How can we tailor our messaging to resonate with these specific markets?
? How do different marketing channels impact consumer discovery, research, and purchase behavior? Which channels drive the highest conversion rates and ROI?
2. Optimal Media Mix and Channel Attribution:
Determining the right media mix and accurately attributing the impact of various advertising channels are key challenges for CPG brands. AMC offers advanced tools for analyzing media investments and optimizing campaign performance. Actionable insights and potential questions that AMC can address include:
? Which advertising channels contribute the most to conversions and revenue generation? How can we allocate our media budget for optimal results?
? What is the ideal media mix to reach our brands' goals effectively? How can we strike the right balance between traditional media, digital advertising, and influencer marketing?
? Can we measure the impact of our Amazon ad campaigns on conversions outside of the Amazon platform? How can we optimize cross-channel marketing to amplify our brand's reach?
3. Enhancing Product Performance:
AMC enables FMCG brands to gain comprehensive visibility into their product performance on Amazon's platform. By leveraging AMC's data analytics capabilities, brands can extract valuable insights to drive product optimization. Actionable insights and potential questions that AMC can help address include:
? How can we optimize product listings and content to improve search rankings, increase visibility, and drive better sales and conversion rates?
? Which customer reviews provide actionable feedback for product improvement and brand reputation management?
? What are the competitive dynamics within our FMCG category on the Amazon platform? How can we differentiate our products and stay ahead of the competition?
? Are there any pricing or promotional strategies that can be deployed to boost product performance and maximize profitability?
4. Consumer Journey Analysis:
Understanding the intricacies of the consumer journey is critical for FMCG brands to create effective touchpoints and drive conversions. AMC provides advanced analytics for comprehensive consumer journey analysis, helping brands answer crucial questions such as:
? What are the key touchpoints along the consumer journey that lead to conversions? How can we optimize these touchpoints to drive higher engagement and sales?
? How do upper-funnel advertising tactics impact brand loyalty and drive repeat purchases? What strategies can we employ to nurture customer loyalty and increase customer lifetime value?
? Which channels or marketing initiatives are most effective in driving consumer engagement and consideration? How can we create seamless and personalized experiences across these touchpoints?
? Are there any gaps or friction points in the consumer journey that hinder conversion rates? How can we identify and address these pain points to improve the overall customer experience?
CDP Integration with Amazon Marketing Cloud
There is customer data across more sources today than ever—from email, websites, and mobile apps, to physical stores, social media platforms, and more. Such data, which a company directly collects from its customers, is called first-party data or signal (1P signal). Creating actionable insights and next-best actions for specific users or segments from unified data has become a paramount concern. Many companies are using off-the-shelf Customer Data Platforms (CDP) or in-house built CDP solutions on Amazon Web Services (AWS) to ingest and unify 1P signals and to create actionable insights for activating Ad campaigns across channels.
By utilizing the secure, privacy-safe, and cloud-based clean room infrastructure AMC offers, advertisers can quickly perform analytics using pseudonymized signals from both Amazon Ads and the advertiser’s inputs from CDP, and generate actionable insights to inform advertising strategy. We will also look at initial results and discuss how native integrations between CDPs and Amazon Ads can help advertisers and marketers better understand their audience through a single pane of glass without leaving the CDP user interface.
The following diagram describes how companies can unify signals, generate insights, and activate custom audiences created based on those insights through integration.
The following events and signal flow are mapped to the image above:
Conclusion:
The Amazon Marketing Cloud (AMC) can potentially revolutionize how CPG brands approach advertising and marketing strategies. By offering actionable insights and addressing critical questions, AMC empowers brands and their advertising or marketing teams to make data-driven decisions that drive success. From understanding consumer behavior to optimizing media mix, enhancing product performance, and analyzing the consumer journey, AMC provides a holistic view of FMCG advertising effectiveness. As CPG brands strive to stay ahead in a competitive market, harnessing the power of AMC becomes imperative to unlock new opportunities and achieve optimal results.
Take care, and smile..
Sources: Amazon Advertising, AWS, Tinuiti, Lab916.
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About Mert Damlapinar
Mert Damlapinar has been in director roles for eCommerce, digital marketing, and sales; he's currently the Principal CPG Digital Commerce Acceleration at EPAM Continuum. He holds a master's degree in Applied Business Analytics from Boston University, executive management degrees in Integrated Digital Marketing from Cornell University, and Applied Data Science and Digital Transformation from Massachusetts Institute of Technology.
He published his second book, Agile Analytics for Startups, in October 2022, and he's currently working on his 3rd book.