How To Cut Ad Waste & Scale Growth with SQP

The head honcho here, head Intentwise, so he's joining us today and Jason Landro is co-co of Nectar, works directly with brands on profitable Amazon growth and is going to share the playbook for driving incrementality. 1 So welcome Jason, um, we're so glad to have you and the floor is all yours. 1 Thanks for having me, I'm excited to talk uh about these topics today. 1 I think there's a lot of content that's put out in this space but a lot of it is not very tactical. 1 Um, so I'm actually, I'm excited to actually dig in today and go through tactics that any brand can implement in its business or ask its agency to implement, um, or implement together with its agency to realize meaningful growth. 1 And these are strategies that are essentially evergreen at this point, um, that any business can use to grow as long as you have some revenue um on Amazon. 1 Uh, but you really for brands of all sizes. 1 Um, so we're going to start with AMC and then we'll move to search query performance. 1

I think one big thing I want to note is Amazon recently uh started a beta giving vendors search query performance status. 1, 2 We'll get into what that is, um, and what you can expect from it is it's extraordinarily powerful uh data that you can, or as Amazon would say, signals uh to uh drive incrementality and measure it. 2 Um, so we expect that SQP will be rolled out to vendors in full, you know, in the not-so-distant future. 2 It's been available to sellers for a long time and there are workarounds to get it for vendors. 2 Um, if you want to know, you can message me on LinkedIn. 2 Um, so uh yeah jumping in here, um, just kind of high level how we see that brands are growing profitably on Amazon. 2 For a long time brands anchored to ROAS, and on Amazon especially, it's a horrible way to drive incremental growth. 2 Because one, Amazon rewards uh brands that bring traffic that converts well organically in terms of giving them preferential placement in uh organic; uh if your advertising is driving that traffic on a keyword and it's converting well, you have good reviews, competitive price, etc. 2, 3

So your paid traffic can influence your organic placement and thus your organic traffic and sales. 3 So if you're just looking at your ROAS that really doesn't take into account how your advertising is influencing your organic. 3 So it's a huge miss. 3 And then what we see often is that brands that are ROAS-driven overspend on branded search. 3 It's not incremental. 3 And we're going to get into how to measure that precisely with search query performance data. 3 And so that's why the full-funnel impact is so important; you want to generate more demand. 3 What we see in a healthy brand is that uh the amount of branded searches are going up over time. 3 Uh and Amazon gives you that data and actually gives pretty much you know if you're in the top 2 million uh everyone can see it um in brand analytics. 3 So you really want to measure how your upper funnel and even mid-funnel strategies are driving demand for your brand. 3 And in fact the more advertising you're doing off Amazon, um, you also want to analyze how that's influencing branded search on Amazon. 3, 4

Um and then I kind of talked about how you want to connect your advertising performance to your organic rank share and repeat behavior. 4 Um you know again because Amazon is unique in how it operates. 4 Um and Amazon Marketing Cloud is an incredibly powerful tool to connect dots right, so what we're talking about with how is your upper funnel and mid-funnel advertising impacting sales, um and uh you know how, so one that's kind of the reporting side, but then two, you know how can you actually build audiences, target new-to-brand customers, um increase your share of voice right, you can use Amazon marketing cloud for all of those things. 4 At this point there's no excuse to not use Amazon marketing cloud and even Amazon is democratizing access by bringing it into the ads console. 4 The only real excuse is lack of education and therefore adoption. 4

So there's no minimum spend barrier. 4, 5 I mean you need to be spending some money on advertising to be able to get meaningful insights out of it, but um you know whether you're spending $10,000 a month, $50,000, a million dollars, there's something you can get out of AMC that can help optimize your advertising and make it better. 5 Uh and and I know Intentwise is doing a lot of work there and a lot of great work. 5 And um actually going to show some uh AMC, at least one AMC report out of Intentwise that we use. 5 Um yeah. 5 So uh and if you have questions uh make sure to send them. 5 I will try to answer them in line if possible but also obviously at the end. 5

Kind of moving along, we tried to bucket, streamline how you can use AMC into kind of categories. 5 Um so one way is measurement of your ad strategy and organic sales. 5 Another way is to identify and create high-performing audiences. 5 So think like abandoned cart uh you know people that have added your products to the cart but haven't purchased. 5, 6 You can build audiences of them using AMC and retarget them, um also driving increased new-to-brand customers and increasing customer lifetime value. 6 Um so for example uh vendors didn't used to get any uh customer lifetime value data that is now possible to get through Amazon and in fact through the paid data set you can unlock it for 5 years. 6 Uh this is incredibly powerful for consumable businesses, um because then instead of uh anchoring to you know a one-time customer acquisition cost, you can actually understand the value of a customer over 5 years and then do math to back into what you are willing to pay to go acquire customers, and you can measure your new-to-brand customer rate just like you would on you know structured DTC business on your own website. 6 So now you can do this on Amazon and measure it. 6 You can break it down at the ASIN level all using AMC. 6

We've built some of these capabilities in our platform Intentwise as well. 6 I mean there's a lot of software providers that are now making this data available to you. 6, 7 Um and and if you're a consumable business on 1P you have to be using this. 7 I mean it's foolish not to. 7 I think some of the most shocking things to me when we started playing with this data and unlocking it for vendors is how high some of the repeat customer rates were. 7 Um you know we saw some pretty scaled uh consumable brands with like 70 plus% repeat business which is really really high. 7 Um and you want to bring that down with more new-to-brand customers. 7 So um you know now that you have this available it's it's a very powerful tool. 7

Um for more mature businesses, uh AMC allows you to connect um what's going on on Amazon with off-Amazon. 7 So your website for example or even in-store. 7 So there's a bunch of paid data sets um where you can connect different uh reports and even audiences. 7 There's certain um companies that have partnerships with Amazon where you can feed in their audiences uh if you're trying to do an activation or target more uh precisely from a publisher or other company that has you know audiences that you know are more tailored to your products. 7, 8 Um so there's a lot you can do to connect the dots beyond Amazon to understand how your advertising is influencing not only your sales on Amazon but off-Amazon. 8 Um for a long time walled gardens have been and still continue to be a major barrier and just understanding your, just deciding your budget allocation um and understanding which channel is most incremental. 8 I think with what Amazon's doing in AMC as well as the partnerships it's entered to essentially be able to bring premium or not premium but kind of the top inventory uh except for essentially uh Google YouTube um you know into the DSP, um you're releasing steps forward to break down those walled gardens. 8 Uh I think the next step is uh the walled gardens between retail media networks hopefully. 8 Um I think maybe we start to see some of them enter partnerships that pressure all of them to eventually work together to a degree. 8, 9 Um at least I hope. 9 But for now this is a great step in the right direction. 9 Um because Amazon is the most mature uh marketplace in North America um and has the most share um you know for larger brands that are spending a lot on Amazon advertising and have a meaningful in-store business, um being able to connect those dots is extremely powerful. 9

Do you feel like I'm leaving anything out here? 9 No, the only point I want to add is obviously for 1P brands the 5-year lookback is something that just never, they never had before at a shopper level. 9 Um now 3P brands, I think there's probably a few folks on the 3P side as well, uh there was some sort of a view from a few seller central reports where you had a hashed buyer ID that you could use as a unique identifier and try to understand repeat purchase behavior in CLTV. 9 The difference with AMC is that previously that data set was not connected to ads, but in AMC it's now connected to ads. 9, 10 So there's something new and incremental for the 3P side as well. 10 Um I just want to make that point. 10 Yeah that's a great callout and I think Amazon announced that it's restricting what it's releasing for the FBM orders which may impact the hashed customer ID. 10 So that workaround may even be less viable moving forward, which is just another reason to be leaning into calculating customer lifetime value uh through AMC. 10

Yep. 10 Um so for example one simple but powerful um report is the path to purchase report. 10 Um so you know a lot of people list out these reports on LinkedIn or in general. 10 This is what it actually looks like. 10 It shows you your combination of ads and here which one is leading to the highest purchase rate, um that you, what we typically see is that when DSP is in the mix with sponsored products, sponsored brands, and sponsored display, that there's a higher purchase rate. 10 Now yes, uh that DSP typically involves some level of retargeting which influences that higher purchase rate, but it's substantial the difference even here, right? 10, 11 You can see that when you're just using um sponsored uh products across you know just two of the uh ad types, the purchase rates are way lower. 11 Um so you know that doesn't mean scale your DSP spend to the moon, but it can often be helpful. 11 And this is a higher-level view. 11 You can drill down into this more. 11 Um you can create custom queries if you're doing uh things that are more nuanced essentially uh and segment this better. 11 Um but you know a lot of people historically have said how do I measure the effectiveness of the top-of-funnel DSP advertising I'm running? 11 One way to do that and initially to gut check it is to look at the path to purchase and how DSP is influencing purchase rate, new-to-brand purchases, um you know the new-to-brand purchase percentage right? 11 Um the path to purchase allows you to look at these things and then you need to calculate normalize them for the relative spend right? 11 So a lot of brands are spending a lot more on sponsored products than they are on DSP. 11, 12 So you have to make sure you're looking at it uh you know with the same ratios essentially. 12 Um but again you know as retail media gets more competitive in terms of on-site traffic, um brands seem to be looking for ways to diversify and generate more demand. 12 Um but it's important to be able to measure it. 12 Everybody's accountable to somebody higher up about the effectiveness um you know and so path to purchase is one way to analyze that. 12 We'll look at some other ways as well. 12

Um and so we have a good question here about path to purchase. 12 How do you, from Laura, how do you break down or think about DSP as the discovery touch that drives search versus DSP as a remarketing touch after search? 12 Um I think the path to purchase is more instructive and then you need to query deeper uh based on the ad types. 12 Um and so looking at this more in a more detailed way essentially segregating your remarketing ads in the DSP from your top-of-funnel advertising. 12, 13 Um so I would say that it essentially takes some work. 13 It's not, it's very very doable. 13 Um but yeah you need to continue to um kind of drill down in more detail and segregate it out. 13 Ser, is there anything you want to add? 13 I mean I think perhaps some of the audience members may not be fully in tune with what actually sits inside AMC and I try to simplify this to basically say imagine a massive data set, although I shouldn't say data, Amazon would be upset, signals. 13 Set of signals every interaction all the way from impression to add to cart, add to wish list to purchase is tracked at an individual shopper level and all their media touchpoints also. 13 And so what ends up happening is the insight you can get is really tied to the quality of the question you ask. 13 Right, so just remember that there's of course a whole bunch of canned views in solutions like ours or Jason's tech stack. 13 Um but knowing what is possible is going to be important because that'll lead to you asking high-quality questions. 13, 14 I just want to put that out there. 14 There's a lot of customizations you can do. 14 Every business is unique and different. 14 Um and so just if you keep that in mind, which is every shopper and every interaction is now available to you, there's a lot of things uh you can start to answer that you couldn't answer before and create some very highly targeted cohorts of audiences which will ultimately result in better outcomes and ad spend. 14

Yeah. 14 So, and so for Laura's question what you would want to do is create a query that essentially asks what is the difference when they see a DSP ad first versus as remarketing. 14 Um so and you would have to craft that query more precisely. 14 But then again if you're only spending you know $10,000 a month on top-of-funnel advertising DSP, which is not a lot, uh right, like the time to do this analysis is not going to reveal anything meaningful probably that you can action. 14 So part of it is not doing over-analysis where it's not going to make, give you insights that are going to allow you to make an impact in terms of the optimizations that you would make from those insights. 14, 15 Um so that's where it's, I would say, how do you balance, you can ask endless questions I guess is what I'm getting at. 15 And so how do you balance uh what you need to take out of AMC with, or you need to balance what you can take out of AMC with what you can actually action in your business and make an impact. 15

Um yeah, so just for the benefit of the audience uh Laura had a question which is in path to purchase how do you break down or think about DSP for discovery versus DSP for remarketing besides what Jason said. 15 I just want to add that uh when you think about path to conversion there's many ways to capture path. 15 So for example in your naming convention for DSP campaigns, all your remarketing could have a certain naming convention and discovery could have another naming convention, and you could have a path by the type of campaigns, discovery versus remarketing. 15, 16 You could set that up uh pretty in a pretty straightforward manner. 16 The key there, which I've noticed that um number of advertisers or campaign structures don't necessarily do very well, is getting naming convention right because if you don't do that there's no way to distinguish or bucket DSP campaigns into discovery versus remarketing. 16 The real key is naming convention because if you have that you can set up whatever path it is that you are seeking. 16

Yeah that's a great point and I kind of assumed that in my answer. 16 Sorry. 16 So you can analyze, really the analysis when you're looking at ad types is at the campaign level. 16 Um so that's why it's so important because you don't really look at the uh, well on sponsor site you don't really look at ad groups. 16 DSP obviously is a little more straightforward. 16 Um yeah um and actually sorry I want to talk about one more thing before we move off of AMC into search query performance. 16 Um you know we don't have a slide on this but one other really powerful thing is building audiences. 16, 17 So a lot of brands are getting traffic to their pages and there's some great capabilities in the sponsored suite of products to retarget certain audiences. 17 But um most of that except for sponsored display is search-based. 17 They have to come back and look for that and then you'll show up again. 17 Um as opposed to following them around like you would in the DSP on and off Amazon. 17 Um so you know I threw out one earlier like abandon cart but also you can go after, you can you know bid new-to-brand, bid up for new-to-brand customers that are highly likely to or that are kind of really in your audience profile essentially which you can do in sponsored and DSP. 17 Um there's all these overlays that you can do and create those high-quality audiences out of AMC. 17 So it can really let you get more uh more money more bang for your buck in terms of how you're spending to make sure you're going after more engaged shoppers or more shoppers that are more likely to buy from you. 17, 18 Um whereas previously you would just have to build, you would build more general custom audiences out of the DSP uh that weren't as tied to your data if that makes sense. 18

Serena, do you have anything there? 18 No I think that nothing more to add. 18 I think that it's your data. 18 The only part I would add is when you're creating audiences you can construct a pool of audiences that already got exposed to your brand but for whatever reason the criteria you're going after results in a small cohort. 18 You could do lookalikes on them which gives you a much much bigger set of cohorts where Amazon is matching attributes of the cohort you've chosen. 18 So lookalikes is another um aspect of AMC that could be pretty interesting. 18 But uh yeah that's yeah, sometimes when you get to a really small audience pool because your criteria is very specific uh you know you'll have to rely on lookalikes. 18

And I just see there were uh some questions in the chat. 18, 19 Sorry. 19 Um so trying to uh see, oh any example of how AMC helps you measure uh analyze DTC? 19 So you can actually upload hashed uh customer data from your DTC site um to do a few different things. 19 One, look at audience overlap. 19 Two, to build audiences. 19 So one great use actually Serena just touched on essentially which is you can upload your DTC data uh exclude those customers and then build lookalike audiences off of them that you can try to target on Amazon. 19 And there's many many more uses of the data depending on your advertising strategy I would say. 19 Is it more skewed to Amazon, do you have scale on DTC, are you running online video ads? 19 So there's a whole host of uh different use cases and how you can use that DTC data because if you're doing more on DTC you, and you have scale on Amazon too, you want to make sure that they're not uh you know that the frequency doesn't become too high that there isn't you know as much overlap. 19 Um right. 19 So you can measure the effectiveness, you're not wasting ad dollars etc. 19, 20 Um so it's a great question uh Sean. 20 Yeah. 20

And then oh sorry go ahead. 20 There's part two to the question so I just want to you should just we should just address that too. 20 So do you do that via web pixel or uh there's a couple of options there right. 20 One is like Jason mentioned, upload your first party data. 20 One additional um opportunity you have when you upload your first party data is you can add on each record any number of custom attributes. 20 So for example when did they last purchase, what product did they last buy, you can add as many as you want because then you can use that in either your analysis or creating audiences within AMC. 20 Now the other way is to put a pixel on the site um on your site and that data comes through as well. 20 Uh at that point you're also getting um not just conversion data but also traffic data. 20 It just depends on what your first party data set is. 20 If you have in-store sales the web pixel is not going to help you right, so some combination of the two uh is probably where you will end up if you are a business that has stores and uh DTC sites and things like that. 20, 21 Just depends on the complexity of all your off-Amazon business. 21

Yeah. 21 And if you're running a lot of video it probably is helpful to install Amazon ad tags on your website or if you're just getting a lot of traffic on your site and Amazon that can be really helpful. 21 Could especially if you're running a lot of ads through the DSP in terms of spend and scale um because then you have a tighter feedback loop. 21 Um you know again you can build audiences off those events automatically um depending on your advertising strategy. 21 If you're more agnostic in terms of where you're getting those sales like on Amazon versus your website right, if you're just you want to let the customer buy wherever they shop, then integrating ad tags on your website will allow you to scale uh your Amazon you know DSP a lot more uh seamlessly I guess. 21

Um and then Valentina had a question about how do you create um how do you create AMC audiences that are going to target customers who wouldn't, that don't only uh target customers who would have purchased anyway right uh since DSP and sponsored products uh typically leads to a higher purchase rate. 21, 22 I think that's a depends whether you're a consumable business versus non-consumable business. 22 Um because you have subscription customers right and you don't want to, you want to minimize, it's a balancing act. 22 You want to minimize your showing ads to customers that are on a subscription and uh you know are past the typical point where they lapsed for example. 22 But I think it's um one using some exclusions in the different audiences that you're building. 22 Um so that you're not uh you're opening up the pool. 22 So essentially you're not just you know targeting someone who has added to cart in the past 3 days right because they're still in that high consideration phase most likely. 22 Um so you know again opening it up to longer windows and then excluding the recent past so that you're waiting, giving those people an opportunity to buy who are kind of in that recent consideration phase. 22, 23 Most Amazon ads reps will give you uh some pretty instructive data about your typical purchase windows like whether customers are purchasing same day, two day, week uh you know more than a week, it can help give you an idea which direction you need to go with some of those exclusions um if you're just getting started with that. 23 But I would say is playing with some of the exclusions the way that you're layering the audiences and not only going targeting people that are at the bottom of the funnel with the audiences. 23 Um because then you're really high risk of cannibalizing people who would have purchased anyway. 23

And maybe one additional idea uh there would be it's not really retargeting or it's kind of retargeting which is if you look at your click-through rates on sponsored ads even the highest intent keywords at best it'll be 2%. 23, 24 Best case scenario right, usually less than that, which also means that like 98% of people searching your high intent keyword haven't even engaged with your ad. 24 So that's a cohort or a segment that you can um start with as well. 24 When you think about DSP it's not again it's not really retargeting. 24 They haven't yet engaged with your PDP or clicked on your ad but they have a very high purchase intent for whatever it is that you're selling. 24 So that's another um cohort that you can layer into your retargeting strategy. 24

Um we're getting a lot of good questions here but I also want to make sure we get through the SQP data. 24 So what we'll do is we'll come back to some of these if we have time. 24 Um yeah so um search query performance, what is it? 24 Um so search query performance lives in brand analytics. 24 So I'm sure uh a lot of you seem very advanced here. 24 That's great. 24 Um you're familiar that brand analytics gives you the top two million terms, the click share uh top three click share and conversion share uh in terms of ASINs for each term. 24, 25 But search query performance is more of a uh brand view of how those ASINs are performing on all the relevant keywords, your brand's impression share, purchase share, the total search volume. 25 Uh and there's a host more of metrics both organic and paid. 25 Um so in essence it really helps you to understand uh the demand that exists, how much of it you're capturing and essentially where you're under penetrated. 25 There's a ton of different ways to use this. 25 Um you know one way that I love is measuring the incrementality of your branded spend. 25 And we'll get into that in a little in the next slide. 25 Um obviously identifying high revenue search terms and seeing if there's more room to push. 25 Right? 25 So if you have a low percentage of the conversion share, you're spending a low amount of money on ads on that term, there's potentially room for you to take more conversion share right, um also looking at search volume and impression share right. 25, 26 If there's high search volume and you have low impression share but you're very relevant for that keyword, maybe you need to get in front of more shoppers. 26 Um and then looking down the funnel comparing your impression share versus your purchase share but you need to improve your creative if you are getting a lot of eyeballs but the conversion is low. 26 Um obviously looking at trends. 26 Um you know prioritize low-hanging fruit. 26 Um sometimes we get caught up on trying to drive improvements for search terms that aren't actually going to you know if you got 100% it's not going to move the needle for you. 26 But if you got you know 2% more conversion share on your top keyword in terms of those basis points, maybe that is you know more than the five keywords you were targeting you know times two. 26 Um and then tracking how your ad spend influences really a lot of metrics. 26 So share of voice, purchase share and so much more. 26 I believe that this search query performance is the number one uh most powerful tool set that Amazon gives you that most brands don't effectively use. 26, 27 Um there is a way for vendors to get this data currently. 27 Um uh and I think if we lean into this heavily and quickly typically in the first 30 to 60 days we're managing advertising can leverage this to make a lot of changes that drive highly incremental results um because there's this wealth of data. 27 It can be hard to process. 27 So granted that is one of the challenges is how do you process and trend this data um but uh yeah it's the number one underutilized thing. 27

So what you're looking at here is it's search query performance data on our platform IDrive that we trend and correlate. 27 Um so you can see here that the metrics are purchase share, click share, impression share, ad spend, search query volume uh best rank. 27 Um and so you can look at two of these at the same time. 27 Um so essentially you can look, I think one of the easiest ones to conceptualize is trending your ad spend against purchase share at a keyword level. 27, 28 So you can look as I'm spending more money is it increasing my conversion share, as I spend less money does my conversion share change? 28 Right, so if you spend less money on a keyword and your conversion share doesn't change then you were wasting money. 28 Um so when people talk about oh there's branded search there's no way to measure it. 28 That's wrong. 28 Search query performance provides you the exact way uh to measure the effectiveness of your branded search and how much you should spend. 28 Granted it can ebb and flow. 28 Um but what you're seeing down here is this data charted. 28 So we're looking at purchase share. 28 If you could imagine you know we took a screenshot of general generic terms not branded terms. 28 Um but this is still the purchase at the, for the brand. 28 Um because search query is first party data from Amazon for your ASIN. 28 But you if you were to show branded terms for your brand on this table you would see your branded purchase share. 28 Um and so you can then experiment with spending less money on those terms and seeing if your branded purchase share moves. 28, 29 Now typically for branded purchase share we see it's 90 95%. 29 Um so what you want to do is find that inflection point. 29 What is the least amount of money you can spend at your optimal branded purchase share. 29 Um we make this easier because we're programmatically pulling this data. 29 It refreshes every day in our IDrive platform. 29 But you can also just pull the data and do it in Excel. 29 Um it's there. 29 It's available. 29 But to me that's one of the easiest ways that brands can uh clean up their advertising um and get more incrementality is testing their ad spend against their conversion share on branded terms. 29

Um just in the interest of time um another thing that you can do uh using brand analytics is uh looking at the search term and how much you're spending and what your conversion share is. 29 So again we pull this in automatically in our platform for every single ASIN. 29 But you can see here for example this brand uh for this ASIN up here um is you know has some higher conversion shares but some low ad spend. 29, 30 So this one um they've been in the top 50, top three uh for conversion share um two times but they were spending zero dollars. 30 So what would happen uh if they spent more money they would probably appear in the top three more than two times in the past. 30 I think this was pulled for 52 weeks. 30 Um so uh yeah this is a great way to find incremental revenue opportunities overlaying your ad spend against uh the brand analytics data. 30 Uh we trend this data uh it used to only be scrapable where you'd have to download it and essentially upload it. 30 Um now they released the API maybe a month or two ago. 30 Um so uh this data here is from brand analytics and we overlay ad spend. 30 Um so and we can do this with a brand's own ASINs as well as competitor ASINs. 30 Um so this is not SQP data. 30 Um so this is a great way again to find incremental revenue opportunities. 30 You can do this on your own using downloading reports out of brand analytics and your uh ad spend, your advertising reports, looking at your ad spend at the keyword level and aggregating them. 30, 31 Obviously that would take some time. 31 Um but you know these are tactics that we're using every day um to find incremental revenue opportunities. 31 That doesn't mean that if we spend more money on one of these keywords that it'll work right, we don't have a crystal ball but a lot of it is trying to find the best keywords and ASINs to spend more money on. 31 And you can validate this by looking at your competitors. 31 How do you compare from a price point perspective, how are your competitors, what is their conversion share and count uh of being in the top 52 in brand analytics either click share or conversion share uh and you can formulate some really good hypotheses that you can then go out and test. 31 Um whereas a lot of advertisers are just looking at the ROAS at the campaign or the keyword level. 31 It's very um it's kind of uh it's kind of like operating in the stone age. 31, 32 Um when you have all this data available that you can use to uh go out there and optimize your campaigns and strategy. 32 Our platform does allow for self-service. 32

Uh I think there was a question for David. 32 Um sorry I'm popping back and forth between the questions and the chat. 32 Uh because we're seeing both. 32 Um and uh we have a couple more slides I think. 32 How much more time do we have Ser, let's get through the slides and then we'll go through the questions. 32 Um something that we do is we have a P&L tracker. 32 There's lots of software out there that gives you a P&L tracker. 32 Um so I'm not necessarily pushing this as much as I am pushing IDrive as I am advocating for understanding your P&L. 32 We have it for 1P and 3P. 32 Um when we're connected to account we can pull out all the chargebacks, shortages, the terms from a 1P account. 32 And our software allows brands to upload their landed cost um so they can get to a true contribution margin and then be able to filter it by product uh child ASIN, parent ASIN, custom group, category, whatever. 32, 33 Um so being able to understand how your advertising is impacting your bottom line is really really important. 33 Um so that you can tailor your advertising strategy accordingly. 33 Uh and this is where I think Amazon often gets really complicated is you might advertise the lowest price product because it has the highest click-through rate but then you need to look at the PDP as a whole and see how it's performing. 33 Maybe that low product is a loss leader but you should be allocating the advertising at the parent level um or the category level because you're just using that one product as a loss leader essentially. 33 Um so I think it's really important for brands to understand their contribution margin on some automated and regular basis as opposed to doing a monthly roll-up of the numbers in your Amazon business because doing that monthly rollup doesn't allow you to really inform your advertising strategy. 33, 34 Often what we see is brands should be investing a lot more money on certain SKUs or variations and deprioritizing others. 34 But if you're doing just a macrolevel profitability analysis um you know then you wouldn't get to those insights and it's really really important right, we talk a lot about advertising and scale and revenue but you know revenue only does so much uh depending on how profitable that revenue is for your business. 34 Um so you really need the left hand to be talking to the right and vice versa or working with. 34

Um so we talked a lot about LTV analysis. 34 Um you know now that this data is available through AMC it's really important if you're a consumable brand uh to lean into that and being able to look at the month-on-month retention trends, where's the drop off uh but also what is the value of a customer, we have that as well in a different table. 34 Um so that you can start to back into okay what do we spend to acquire a customer, when should we be retargeting people with ads to make sure that they you know get over that hump, maybe month three is where customers typically start to drop off. 34, 35 But you need to know where that is to tailor your advertising strategy accordingly. 35 Um because Amazon is not as uh you know they own the customer. 35 So you can't communicate with them in the way that you would on DTC like sending an email. 35 Are you enjoying the product or make sure you're doing XYZ to get this out of it right, so you have to be a little more creative or crafty when it comes to Amazon but you've already spent all this money to acquire them. 35 You want to make sure that you you keep these uh customers. 35 And so understanding where that is um where those drop offs are, what a customer is worth to you is really really important in my opinion especially now that data is attainable. 35

All right I sped through it Ser. 35 I don't know how much more time we have for questions. 35 I think we can take at least a couple of questions I think. 35, 36 Uh Rolando is that is that good? 36 Yeah absolutely. 36 You're quite the hit the engagement was uh was definitely off the charts here. 36 Um but just let me make everyone aware if we don't get to your question live uh we'll definitely uh follow up via email. 36 So there's a question from Candace here which is what is the minimum DTC audience size recommended to build a lookalike audience? 36 I don't know that there's a recommendation Candace as much as um I mean for example on the lookalike side there's about five degrees of specificity you can choose and the most specific which gives you the smallest size of audience can get you half a million people. 36 So um and from Jason if you have a point of view feel free to share but it's, sorry go ahead, technical I'm sure there's a minimum size that you're like there has to be a minimum number of entries on the list right to create a lookalike? 36 I actually I require I remember for example like Facebook was 50 or 100 so I imagine uh back in the day when uh so I imagine there's some technical requirement that your list has to be of a minimum size but um yeah beyond that no. 36, 37

Yeah um so there's that uh David, hey David how are you? 37 David's question uh Jason is how do you tell the organic position of the keyword for the brand I think he's probably talking about from brand analytics data and stuff is that yeah um I... 37 So my understanding Jason correct me if I'm, there's no organic position information in uh the brand analytics data or search query performance data. 37 We're tracking that separately uh by actually you know grabbing search result data at a keyword level on a regular basis. 37 That's how, yes so scraping is the way that you have to do that which is an approximation essentially. 37 Um yeah and then also looking at bestseller rank is another way to do that. 37 So that Amazon doesn't provide that data saying that you know you're in organic position one or two. 37

Uh let's see maybe one more question. 37 Uh I do we don't know when the search query performance report will be rolling out in VC accounts. 38 Um Amazon didn't really announce the beta. 38 They just started adding it to certain accounts. 38 Um because it's already available and has been for years in seller accounts I don't see this being you know one of those betas that they open up and then close down. 38 It would be very very odd. 38 They do typically take longer to roll out features that are available in seller central to vendor central. 38 But I have not been given any information on that. 38 Um yeah timeline just one last let's take one last question Jason. 38 There's an interesting question from Daniel Frame, I'll I'll just read it to you uh and the audience. 38 Is there a threshold of spend and sales that should be reached before utilizing AMC audiences and is there best practices for attaching top-of-funnel, mid-funnel and bottom-funnel audiences to certain specific campaigns? 38 I think the first question is kind of like the last one which is you need some level of spend otherwise you won't have enough money to you know get in front of those audiences. 38, 39 Um what that number is is kind of hard to say. 39 Um but I would say that if you're, it depends on the number of products you have and how much you're spending against those products. 39 But you know I would say if you're spending 10,000 or more dollars a month on Amazon advertising you know which is like at least $300 a day you there's probably a, you're probably going to be able to get something meaningful out of doing that. 39

Serena do you agree? 39 I think I think um maybe there's a couple of proxies for spend levels right so if you're doing DSP this is a no-brainer. 39 Yeah. 39 Right. 39 So the assumption is you are at some scale in sponsored ads and you're trying the DSP. 39 So that's step, that's one way to address this. 39 The other thing is within sponsored ads um you can still create custom audiences. 39 I mean if you look at the evolution of sponsored ads it started off with auto campaigns a long time ago. 39 Then we got keywords then we got product targets. 39, 40 Now the leverage really is in audiences right so even at small scale you could create audiences and then start to target them in sponsored product, sponsored brand, sponsored display. 40 But uh you know I'll make up a number. 40 Let's just say you're, you can get about 5% more efficiency on your uh conversion rates. 40 Is that material relative to your ad spend is the question right uh yeah it's hard to give an answer on the low end. 40 Um. 40 Yeah. 40 But I I mean I I I guess that's my answer was the best one I had for the low end. 40 Yeah Yeah. 40

Uh and then I don't think there's a best practice per se and how you attach those audiences. 40 I think it depends. 40 I would say more about the um ad type I mean the where those ads are being placed um than they they are like you know the the product attribute targeting. 40 So for example like if you're building audiences around people that have already engaged with your PDPs using sponsored display or DSP is probably going to work better um because it'll transcend search um versus trying to reach people that are in aisle but you maybe they looked at a competitor page but didn't purchase for example you know going or or just a you know customers of a certain type that are in aisle uh you you you want to be more present in in search as well so using sponsored products um so yeah I think it's a lot more nuanced and trying to understand what the audience is and and you know how they've interacted you whether or not they've interacted with you um that dictates it is is how I'd probably frame that. 40, 41

Awesome Awesome. 41 Um I do have one last question for you Jason and put you on the spot. 41 But uh if you had to distill today's session into one, if you remember nothing else, a takeaway, what would it be? 41 Don't be afraid of all the data. 41 Uh and don't and and embrace it. 41 And don't just do things the same way because it's comfortable and familiar because the way that things have been done is not the way to get the best results moving forward because retail media and Amazon advertising especially have dramatically evolved their capabilities in the past couple years. 41, 42 And so you have to figure out how to evolve with those you know new capabilities if you want to stay ahead grow succeed be profitable. 42 Um so I would say push yourself to get out of your comfort zone. 42 Embrace all these you know all this data all these features understand how to apply them to your business or work with people companies consultants that do um so that you can continue evolving you know what you're doing and grow. 42

Awesome. 42 Thank you so much Jason. 42 And thanks for having me. 42 Thank you. 42 Uh and before we wrap uh a quick a quick heads up. 42 Uh we do have our next webinar lined up for next Tuesday. 42 Um probably see it on your screen. 42 There's a a link there uh so that you can go ahead and register. 42 So it'll be next Wednesday uh same time same place. 42 Uh we hope to to see you there. 42 And uh the topic is going to be an interesting topic uh uh including Lvanta um and we're going to touch into Amazon affiliate marketing. 42, 43 So definitely you'll want to be a part of that and u thank you Jason so much for joining us today uh as you're as we could see the uh the audience loved you and Serena thank you so much as well and we'll see you all uh next week. 43 Take care everybody. 43

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