When you sell on Amazon, there are many moving pieces, from impressions to sales. This gives you the opportunity to evaluate success in a few ways. However, for many advertisers, analyzing attribution is the best place to start. This is essentially a way to identify where sales have come from.
Amazon demand side platform (DSP), allows for programmatic placement of ads which leverages automation to place ads in key places. This method is a little different than standard keyword-driven PPC campaigns, meaning your strategy needs to look different as well. Luckily, Amazon’s DSP offers plenty of insights, allowing you to explore how your campaigns are performing, no matter the methodology.
Key takeaways
- Measuring attribution is a key part of understanding where customers are coming from and how to use retargeting ads.
- Amazon DSP uses specific attribution models to help advertisers analyze the ways in which shoppers interact with their ads and make buying decisions.
- Attribution analysis has many benefits, including optimizing ad spending and evaluating ROI.
What is advertising attribution?
Advertising attribution is a way for advertisers to evaluate the effectiveness of advertising campaigns by determining the source—also referred to as touchpoints or channels—of various outcomes, like sales, leads, or any other measurable action. In simple terms, it’s a way to determine which ads are driving customer behaviors.
Standard keyword-based PPC campaigns are fairly straightforward to track; following clicks yields easy answers. However, as programmatic options evolve, the water can get a little murkier.
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Types of attribution models
To assess details on a broader level, attribution models go beyond the old standards, using numerous approaches to data collection.
First-click attribution
Using a first-click point of view, a customer’s buying decision is associated with the first ad or other marketing material interacted with. Essentially, it assumes that the first time a customer sees ads related to your company is the point at which a buyer commits to a sale. However, in emphasizing the role of initial brand awareness, first-click ignores the fact that the first ad may not have registered any interest from a shopper, and they were swayed to buy based on future interactions.
Last-click attribution
This model determines the point of conversion based on the last ad that a customer interacted with before making a purchase. This method is simple and straightforward—the last click means the point of conversion—but isn’t always the most reliable, as it can overlook the contribution of other touchpoints throughout a customer’s commitment to clicking Buy Now.
Linear attribution
Linear attribution looks at customer actions in totality, assigning equal weight to each touchpoint. For example, if a customer clicked on an ad one day, another the next day, and then, at some point in the future, makes a purchase, each of these interactions is considered a source of attribution. This method is a little more balanced than looking solely at clicks but doesn’t consider the fact that some ads will resonate more than others.
Time-decay attribution
Time-decay attribution assigns more weight to touchpoints closer to the conversion event. This is under the assumption that the interactions happening closest to the point of sale indicate an increased interest in committing to a purchase.
Algorithmic attribution
Algorithmic attribution is the most comprehensive and advanced analysis method. This strategy employs machine learning to create data-driven assumptions that dynamically assign importance to touchpoints based on a perceived impact on conversions. Due to the use of AI to study actions and learn patterns, the methods an attribution algorithm uses can shift with changes in customer behavior to provide the most accurate insights possible.
How does Amazon DSP measure attribution?
Amazon DSP utilizes a 14-day, last-touch attribution model, although Amazon Marketing Cloud does offer the potential to use more advanced attribution settings.
When creating Amazon ad campaigns, advertisers can place individual attribution tags on all of the spaces in which ads are intended to run via the campaign manager on said sites.
For example, for an ad being run on a social media platform like Instagram, users will need to copy and paste the specific attribution tag associated with the campaign in the destination URL field rather than the standard entry of an ASIN or store URL.
This way, when someone clicks on an ad, Amazon DSP will be able to determine where the click came from and the ultimate outcome of the interaction.
Amazon’s use of AI attribution measurement through DSP is continuing to evolve, so users can expect these approaches to improve as the system develops further.
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Why attribution is important for sellers
Understanding attribution is a key part of eCommerce selling but can be of particular importance for those leveraging ads outside of the Amazon ecosystem. There are several different ways exploring attribution metrics can make the costs of DSP well worth it.
- Optimize advertising spend: Committing to eCommerce advertising can be expensive, especially for newer sellers still finding their footing. When ads are spread across numerous channels, determining how to best optimize spend gets even more complicated. Understanding attribution allows sellers to explore which channels are most effective in driving sales; identifying the highest-performing ads makes it possible to build a more efficient budget.
- Understand customers’ behavior: Advertisers know the result of effective advertising—a successful sale—but not always how a customer gets from Point A to B. Studying attribution trends can help with this, demonstrating how customers engage with various touchpoints and which ones are most meaningful. By learning more about how customers behave on certain platforms, you can lean into the most successful approaches.
- Improve messaging: When sellers are given the tools to determine what ads are working and where they’re most effective, they can determine which marketing slogans and content resonate most with customers.
- Take advantage of personalized opportunities: While most Amazon sellers aren’t in a position to truly personalize campaigns for individual buyers, there are opportunities to instead personalize ads based on platform. For example, what works on Instagram might not work on Facebook, so understanding how customers engage with marketing messages on different websites can help you create content that best resonates with a particular platform’s user base.
- Measure ROI: For any advertising strategy, ROI is key, and attribution tools offered by Amazon DSP can help determine what you’re getting for your investment. In addition to measuring a campaign in general, sellers can look at ROI via the campaign as a whole, by category, or even by site.
Tips when using Amazon DSP
Amazon DSP can be a valuable tool for eCommerce sellers of all kinds, but exploring attribution data and using what you learn to inform future campaign creation and employment takes time. Keep these tips in mind when using DSP to gain insight into advertising:
Understand your objectives
To know what metrics to look for, you need to know what you’re trying to learn. What are your goals for using Amazon DSP?
- Are you trying to grow your base of customers?
- Expand awareness of your products across new platforms?
- Convert users in new areas?
- Refine the tactics you’re already using?
Determining what exactly you’re trying to gain from the platform can mean the difference between getting the data working for you and a pile of information with little meaning.
Leverage Amazon’s rich data
Amazon can put a wealth of information at your fingertips, but if you’re not using it properly, you’re not benefiting from the tools available. Rather than sticking to the basics, explore what data and metrics exist, as well as how they can best be used to help you explore your options and come up with creative campaigns.
Use advanced targeting options
Using advanced targeting options can help your campaigns improve in complexity and become far-reaching. By leveraging the more expansive targeting options available through Amazon DSP, you can do more to get your ads in front of the right eyes, meaning more sales.
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In Summary
Including Amazon DSP as part of your Amazon software strategy can mean a shift in how you approach advertising, enabling you to leverage new insights. But don’t stop here. With Trellis, you can couple the use of Amazon attribution tactics with the 4 Ps of advertising, ensuring your promotions, pricing, and product content align to keep you ahead of the competition. To learn more about how you can make the most out of every campaign, reach out to us,
