Amazon DSP is a demand-side platform that enables endemic and non-endemic brands to programmatically buy ads to reach new and existing audiences at scale on and off Amazon. This case study details how Channel Key successfully leveraged the power of Amazon DSP for a consumer packaged goods brand. Our client was enjoying strong results with Amazon Ads, but wanted to take their sales to the next level with Amazon DSP. After testing campaigns with Amazon’s managed service for several months, our client asked Channel Key to take over Amazon DSP for more vertical control. The challenge was to develop and implement a more effective strategy that would position the company for long-term, profitable growth and justify the investment of Amazon DSP.
Drive New-to-Brand Customers
Create and launch targeted Amazon DSP campaigns off Amazon with the goal of increasing the pool of new-to-brand customers
Increase Branded Search Traffic
Improve visibility on and off Amazon with upper and middle funnel campaigns to reach shoppers at various points of the customer journey
Maximize Subscribe & Save Conversions
Retarget past customers with Amazon DSP campaigns that encourage Subscribe & Save sign-ups to drive repeat sales
- 67% year-over-year subscriber increase from Q1 2021 to 2022
- 22% new-to-brand customer increase after first full quarter of running Amazon DSP
- 50% increase in branded searches from Q1 2021 to 2022
According to Amazon data, 22% of our client’s repeat customers make 10+ purchases a year. Based on this insight, Channel Key recommended allocating ad spend to growing its loyalty base, which would provide a higher ROI since these customers purchase more often.
Channel Key implemented a two-pronged marketplace strategy: 1) leverage DSP to significantly increase brand awareness off Amazon with the goal of increasing the pool of new-to-brand customers, and 2) retarget these customers with the goal of converting them into Subscribe & Save members.
Overall, Channel Key’s Amazon DSP strategy grew Subscribe & Save customers by 67% YoY, increasing order rates by over 40% on top ASINs.