- Average Sponsored Products CPC is $0.59. Competition for ad space among Amazon's 300 million active customers makes Sponsored Products alone insufficient for maximizing ROI.
- Amazon DSP delivers programmatic reach across multiple channels. A leading CPG brand achieved a 35% sales lift by using DSP to target high-value customers beyond Sponsored Products inventory.
- Sponsored Brands Video generates 25% average sales lift. One beauty brand saw a 50% sales increase after launching a targeted video campaign using Amazon's proprietary player.
- AMC audiences enable custom targeting based on behavior. A leading electronics brand increased sales by 45% by creating lookalike audiences and targeting customers interested in related products.
- Full-funnel advertising drives 30-50% more revenue. A grocery brand achieved a 40% sales increase by combining awareness, retargeting, and conversion strategies across DSP, video, and AMC platforms.
Amazon Advertising Beyond Sponsored Products: Unlocking the Power of DSP, Video, and AMC Learn more in our Amazon PPC advertising guide.
As an expert in Amazon marketing, I've seen numerous brands rely solely on Sponsored Products to drive sales. However, this narrow focus can lead to missed opportunities for growth. In this post, we'll explore three advanced advertising strategies - Amazon DSP (programmatic), Sponsored Brands Video, and Amazon Marketing Cloud (AMC) audiences - that can help you maximize your ROI.
What are the limitations of Sponsored Products on Amazon?
While Sponsored Products is a staple in most Amazon advertisers' arsenals, it's essential to understand its limitations. With over 300 million active customers, competition for ad space is fierce. A study by Jungle Scout found that the average cost-per-click (CPC) for Sponsored Products on Amazon is $0.59 - a number that can quickly add up, especially if you're not optimizing your campaigns effectively.
Questions? Schedule a call with our Amazon specialists.
How does Amazon DSP enable programmatic advertising?
Amazon's Demand-Side Platform (DSP) allows brands to programmatically buy and manage ad inventory across multiple channels, including Amazon, mobile devices, and other websites. By leveraging Amazon DSP, you can:
- Scale your reach and frequency beyond Sponsored Products
- Access premium inventory from top publishers
- Use advanced targeting options like custom segments and lookalike audiences
In a case study published by Amazon, a leading CPG brand achieved a 35% increase in sales lift after implementing Amazon DSP. By targeting high-value customers and optimizing their ad spend, this brand was able to drive significant revenue growth.
How can Sponsored Brands Video boost your sales?
Sponsored Brands Video (SBV) allows you to create engaging video ads that showcase your products in a unique and compelling way. With SBV, you can:
- Create high-quality video content without the need for external production companies
- Use Amazon's proprietary video player to reach customers on any device
- Leverage advanced targeting options like demographics, interests, and purchase history
According to Amazon, brands that use SBV see an average lift of 25% in sales. A leading beauty brand saw a 50% increase in sales after launching a targeted SBV campaign.
How do AMC audiences improve targeting and sales?
Amazon Marketing Cloud (AMC) is Amazon's proprietary advertising platform that allows you to create custom audiences based on customer behavior and preferences. With AMC, you can:
- Create lookalike audiences using advanced segmentation options
- Target customers who have shown interest in similar products or categories
- Use Amazon's proprietary data to identify high-value customers
By leveraging AMC audiences, a leading electronics brand was able to increase sales by 45%. By targeting customers who had shown interest in related products, this brand was able to drive significant revenue growth.
How does a full-funnel approach drive more revenue?
While awareness and consideration are essential, they're just the starting point. To truly maximize your ROI on Amazon, you need a full-funnel approach that includes:
- Awareness and consideration (Sponsored Products, SBV)
- Retargeting and lookalike targeting (Amazon DSP, AMC audiences)
- Conversion and purchase intent (AMC audiences)
By adopting this comprehensive strategy, brands can drive 30-50% more revenue than those relying solely on Sponsored Products. A case study by Amazon found that a leading grocery brand saw a 40% increase in sales after implementing a full-funnel approach.
How do DSP, Sponsored Brands Video, and AMC compare?
| Strategy | Key Benefit | Average Lift | Best For |
|---|---|---|---|
| Amazon DSP | Programmatic reach across multiple channels | 35% sales lift | High-value customer targeting |
| Sponsored Brands Video | Engaging visual storytelling | 25% sales lift | Product showcasing |
| AMC Audiences | Custom behavior-based targeting | 45% sales lift | Lookalike and interest-based targeting |
| Full-Funnel Approach | Awareness through conversion coverage | 30-50% revenue increase | Comprehensive strategy |
Conclusion
As you can see, there's much more to Amazon advertising beyond Sponsored Products. By leveraging advanced strategies like programmatic advertising (Amazon DSP), video ads (Sponsored Brands Video), and custom audiences (AMC), you can unlock new revenue streams and drive significant growth.
At Marknology, we've helped over 300 brands succeed on Amazon. If you're ready to take your marketing strategy to the next level, contact us to schedule a consultation today.
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