New Customer Acquisition Jumps 10%p! The Secret to Integrating Amazon DSP + AMC

Quick Takeaway By using Amazon Marketing Cloud (AMC) to retarget customers exposed to Amazon DSP ads with Sponsored Ads, a brand doubled its new customer purchase rate and boosted new-to-brand sales by 10 percentage points.

What's This About? This case study highlights a successful advertising strategy employed by Italian coffee brand Lavazza to acquire New-to-Brand (NTB) customers using Amazon Marketing Cloud (AMC). Lavazza traditionally used a two-pronged approach: Amazon DSP for upper-funnel awareness and Sponsored Ads for lower-funnel conversions. However, they struggled to directly track and re-engage potential customers exposed to DSP ads who didn't immediately convert through Sponsored Ads. This represented a significant gap, as interested prospects weren't being effectively guided towards purchase.

To address this, Lavazza partnered with Intentwise, an Amazon Ads Partner, to implement AMC. Using AMC, they identified potential customers who had been exposed to DSP ads but hadn't yet made a purchase. They then built custom audiences from these segments and applied them to their Sponsored Products and Sponsored Brands campaigns, increasing bids by 30%. The results were impressive: new customer sales increased by 10 percentage points, and the purchase rate for AMC campaigns was twice as high compared to non-AMC campaigns (0.10% vs. 0.05%). Furthermore, AMC campaigns demonstrated superior efficiency, achieving a higher share of new customer sales (28% vs. 15%) with significantly less budget (approximately 8.36%) than non-AMC campaigns.

Implications for Sellers 1. Strengthen Your Full-Funnel Strategy: It's crucial to organically connect your upper-funnel (awareness) and lower-funnel (conversion) advertising efforts. Consider a strategy where you use Amazon DSP to build brand awareness, then leverage Amazon Marketing Cloud (AMC) to identify those exposed prospects and retarget them with Sponsored Ads to drive purchases. The key isn't just showing more ads, but understanding who to show them to and when. 2. Data-Driven Audience Targeting: AMC is a powerful tool for building sophisticated audiences by combining ad exposure data with purchase data. You can identify "warm" prospect groups—like customers exposed to DSP ads who haven't purchased yet, or those who visited a specific product page but didn't convert—and run tailored Sponsored Ads campaigns for them. This approach maximizes ad efficiency and allows you to focus on acquiring new customers. 3. Strategic Bid Optimization: Prospects who have been exposed to DSP ads are generally more likely to convert than generic customers. For these high-potential audiences, it's effective to increase your Sponsored Ads bids (e.g., a 30% bid boost) to secure more visibility. As the Lavazza case demonstrates, such strategic bid adjustments can significantly boost new customer conversion rates and sales share. Rather than simply increasing your overall budget, it's wise to allocate resources efficiently by focusing on audiences with the highest conversion potential.

Important Notes 💡 Amazon Marketing Cloud (AMC) is an advanced analytics tool that may not be directly accessible or easy for all sellers to utilize. It's typically available to large advertisers leveraging Amazon DSP or through collaboration with an Amazon Ads Partner. For sellers looking to use AMC directly on Amazon US, partnering with an Amazon Ads Partner is currently the most common approach. Additionally, this case study is based on the US market, and feature availability may vary by region.

Next Steps - Analyze the New-to-Brand (NTB) performance of your current Amazon DSP and Sponsored Ads campaigns. - If you're interested in utilizing Amazon Marketing Cloud (AMC), consult with an Amazon Ads Partner to discuss strategy development and implementation possibilities tailored to your brand.

📰 Source: https://advertising.amazon.com/library/case-studies/intentwise-lavazza-new-to-brand-growth