Amazon’s Media Impact on Online and Offline Sales

Kvantum evaluates emerging Amazon Media channel and its impact on in-store & online sales to help a multi-brand CPG company build an optimized media portfolio.

Amazon’s Ad Network Impact on Sales
Amazon has recently emerged as a powerful eCommerce Ad platform for CPG companies with its features like Dynamic Ads, Coupon Ads, Subscription & Save, Amazon Dash, etc. After the introduction of Amazon Ad Platform (AAP, also known as Amazon Media Group), offering a range of display and search advertising, CPG marketers are debating the ideal mix of media and merchandising to build a brand or category portfolio on Amazon. As part of AAP, Amazon provides segment-level performance metrics so that Advertisers can see how the campaign is running and make tweaks mid-campaign, to be able to drive down things like cost per acquisition or cost per lead. But it is not holistic for an Advertiser that is spending money on various campaigns across multiple brands and categories on AAP and outside Amazon platform.

A global multi-brand CPG company had invested in Amazon merchandising (Amazon Dash and Subscribe & Save features) and added
AAP to the mix as a “Test & Learn” scenario to improve overall ROI. The Retailer Marketing & Media teams wanted to assess the
impact of Amazon Media on online (Amazon.com) and offline sales to make informed investment decisions for various brands across
multiple categories. These recommendations were essential to fully optimize the entire digital mix across the brand portfolio.

Specifically, this CPG brand wanted to:
1. Compare brands’ performance across Amazon media channels (search & display).
2. Understand which brand/category bring the most returns from Amazon Media.
3. What tactics across Amazon Media & eCommerce portfolio are the most effective?
4. Assess Amazon media impact on in-store, amazon.com and other retailer’s eCommerce sales.

“For the first time, we saw the interplay between Amazon merchandising and Amazon media for some of our top categories. This has certainly helped us & our agencies to shape next year’s media buy at Amazon. Kvantum truly innovates by bringing new kind of analysis on emerging data sources such as Amazon.”

Senior Director, Integrated Marketing

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In Case Study, CPG, Cross-channel, Digital Attribution, Media Mix, Amazon Media