Amazon Advertising Platform (AAP) Uses Attribution to Win Over Programmatic Media Buyers

Amazon’s theme of go big or go home remains consistent when it comes to it’s most recent moves in the programmatic advertising space.  Their DSP is already the 3rd most popular for media buyers and is seeing a 50% growth in adoption.  The popularity of Amazon’s DSP isn’t because of the platform itself and they are certainly not winning any awards for service, according to media buyers, but it’s because of the data that lives inside the platform.  According to Digiday, Amazon is running a series of attribution tests with at least two agencies, with the goal to prove its long-running pitch to marketers that Amazon offers, unlike Facebook and Google, what it calls a “total wallet perspective.”

Amazon DSP

Amazon is promising its programmatic ad buyers that if you buy ads on their DSP platform, you’ll know that they work and they will show you data to prove it. Because marketers not only want to be able to place ads in the right place and at the right time, but they also want the right relevance.  Amazon has a gigantic pool of real-time data, not just likes and habits, but actual purchases – what people are buying and how they are doing it -, you will know what ads work in actually driving people to make purchases — and then be best positioned to target those ads.

What programmatic buyers really want from Amazon and other DSPs is data they can’t get anywhere else.  This need has caused a shift in media buyer’s attention from a one DSP relationship strategy to having multiple contracts to satisfy their inventory and data challenges. So while buying remains fragmented, according to Forrester’s report titled “Marketers Must Demand More from Their Ad-tech”, marketers are searching for their single source of truth.
The word on the street is that Amazon is launching a new attribution tool designed to demonstrate the value in its’ advertising platform to skeptical media buyers and show how their advertising stacks up against other advertising platforms like Facebook and Google.

Why is Attribution Important for Amazon?

Media buyers use attribution models to track the behavior of users across platforms and devices. Individual purchase paths across the customer journey can be observed and used to continuously improve the programmatic media buying algorithm. Using an attribution model marketers can collect more customer data and then they can show relevant ads in ever better places at ever better times. When attribution models are used to inform programmatic algorithms, marketers gain a more realistic view of ad effectiveness.  If you’re not measuring the impact of your marketing efforts—especially in today’s world of fragmented devices and touch points—you are likely missing out on ROI opportunities and wasting spend on channels, strategies and audiences that aren’t performing well. Plus, getting attribution right helps you maximize your learnings to make better business decisions over time.

Amazon Attracts Media Buyers With Their Unique Data

Showing insights into where leads are coming from and which ad campaigns are resonating with advertisers is half the battle, but Amazon also has to find a way to relay that information in a clear, actionable way, or media buyers won’t know how to make use of the raw data. Brands now, more than ever before, want to be able to understand which advertising methods and platforms are gaining results, and also how to use that attribution to shift and improve their strategies moving forward.  As budgets get tighter and more marketers become sophisticated with programmatic buying platforms, the need to understand what ads and buying methods are performing is increasing – and it has to be scientific.  CMOs want to know how many people clicked on ads, where the ad was placed and if it lead to a purchase. The one thing marketers hate is spending media budget to buy ads and then having to prove that they are really converting.

All this is meant to upset the Facebook-Google Duopoly.  Amazon is not only increasing their brand recognition with media buyers with tools that they need to make their jobs easier, but they are also heavily investing in programmatic talent, as one of their biggest complaints from marketers has been lack of support.  The media buying business is still heavily centered around people, and managed service isn’t going away anytime soon according to Joanna O’Connell in her recent Forrester’s report on omnichannel marketing.

Digilant is partnered with Amazon’s Advertising Platform (AAP).  If you want to learn more about Amazon as a DSP and how you can get started go here.  Otherwise you can contact us now to get started: info@digilant.com.

Programmatic Media Buying 101: Amazon Invests in Ad Tech with its DSP AAP (Amazon Advertising Platform)

Interested in learning about Amazon’s DSP capabilities and how it can add value to your media plan? Reach out to us here and learn about Digilant’s unique partnership with Amazon’s AAP (proprietary ad platform).

Amazon is now everywhere, seemingly moving into every industry and recently making great strides in ad tech with its growing DSP business, opening up self-service programmatic ad products, and offering training programs to make direct connections with ad buyers. Its Transparent Ad Marketplace is the most popular server-to-server wrapper in the ad industry.

According to eMarketer‘s latest report, Amazon’s advertising revenues will total $1.65 billion in 2017 —far below that of Google or Facebook, but above brands like Twitter and Snapchat.
By investing in it’s demand-side platform (DSP), which is now one of the largest in the US, Amazon has a larger share of the US digital display ad market. With 3.0% of net US digital display ad revenues, Amazon takes 4th place for display ad buying in 2017 and is keeping it’s eyes on 3rd place. By offering Headline search ads, Amazon can compete with Google and Facebook for ad dollars.  Amazon is the most popular site for customers to search for consumer products online and by offering headline search ads, they are now dipping into Google’s search engine market share.

Amazon is Changing Digital Advertising as we Know it!

The one thing marketers hate is spending media budget to buy ads and then having to prove that they are converting with attribution methods.  Amazon is promising its programmatic ad buyers that if you buy ads on their DSP platform, you’ll know that they work and they will show you data to prove it. Because marketers not only want to be able to place ads in the right place and at right time, but they also want the right relevance.  Amazon offers measurement metrics from impressions and clicks to deeper data on sales information, full shopping journeys and things like a customer’s worth over a lifetime, giving media buyers what they need to prove their ads are contributing to conversions.  Amazon has a gigantic pool of real-time data, not just likes and habits, but actual purchases – what people are buying and how they are doing it -, you will know what ads work in actually driving people to make purchases — and then be best positioned to target those ads.

Their timing couldn’t be better, as Amazon’s DSP is growing in popularity, ad buyers are cutting back the number of DSPs they use. Media buyers and CMOs are choosing to use less DSPs and self-service platforms are on the rise in the ad tech industry, specifically for brands who are bringing all of their digital media buying in-house, with the goal to trim fees and have more control over their overall go-to-market strategy.  Amazon has greatly benefited from the programmatic in-housing trend. It offers agencies and brands a programmatic self-service model, and its DSP fees are among the lowest in the market.

If you want to know more about Amazon’s DSP capabilities and how it can add value to your media plan, or ask questions about Amazon’s AAP (proprietary ad platform) Digilant can help.  Reach out to us here.

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