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Tips for Measuring Marketing Effectiveness Across the Funnel with Amazon Advertising

Kathryn Murphy
3 Minutes

Tips for Measuring Marketing Effectiveness Across the Funnel with Amazon Advertising

You cannot deny that Amazon Advertising can be a powerful tool if you are looking to grow your Amazon business. A full-funnel strategy makes sense in the context of today’s omnichannel journey. In addition to achieving better results across the marketing funnel, advertisers who take a full-funnel approach also see better results in brand awareness, consideration, and conversion.

Amazon Advertising's full-funnel solutions reach customers throughout their lives with products that deliver unparalleled reach and relevance. It is used to offer the understanding and insight you need to continually refine and optimize your campaigns.

The following are five tips for optimizing your full-funnel strategy to improve your budget efficiency and customer satisfaction.

Evaluate the performance of your non-Amazon ad campaigns

However, we must admit that Amazon advertising isn't the only way for shoppers to discover your brand and interact with it. Full-funnel strategies often include non-Amazon channels like search, social, email, and possibly even a retail website. Because of this, products like Amazon Attribution help you grow your business on Amazon by optimizing experiences off Amazon.

The Amazon Attribution tool is designed to help you achieve your business goals by allowing you to measure, optimize, and plan. As a first step, Amazon Attribution lets you measure how marketing and media activities outside of Amazon contribute toward sales performance on Amazon. As a second benefit, you can leverage these insights to optimize your cross-channel advertising. As an example, you can tweak your strategy if you notice that certain ads performed better than others from one search engine to another. Furthermore, by utilizing Amazon Attribution to measure your marketing, you will become familiar with trends and benchmarks that will help you plan future campaigns to maximize returns. As an example, you might notice that email is the most useful channel for launching a new product. By using this information, you can plan future launches more effectively.

Amazon Attribution insights have led to significant improvements in full-funnel marketing performance for advertisers who use them.

Get to know your audiences throughout the funnel

As you diversify your marketing strategy, you gain greater insights into your target audience so you can tailor your media. You can refine your brand's creativity and audience strategies by knowing which shoppers respond best to performance advertising. This highlights your product's functional benefits and price, and which shoppers respond best to imagery and branding.

As an extra tip, you can measure how Amazon Advertising affects homepage visits, orders, or other touchpoints along the customer journey by adding a pixel to your website.

Analyze how your advertising spend compares to others based on aggregated peer sets

Even though every advertiser's strategy is unique, sometimes it's helpful to compare it against an aggregate set of peers in the same product category. By comparing your Amazon Advertising spend to peers in your category, you can learn whether you're over-or under-indexing on sales, branded search, subscribe & save, and other metrics. These are called "peer sets."

Think outside of the ROAS box

In conclusion, a full-funnel approach is more than simply maximizing return on ad spend (ROAS). The activities at the top of the funnel may appear to generate less return on advertising spend than those in the lower funnel. Don’t panic—this is normal.

Our guide to full-funnel marketing illustrates how the funnel can be used to visualize audience engagement. A lower-funnel activity typically targets a small, highly engaged audience. As you progress up the funnel, you will likely reach larger audiences, but you might need to provide them with more information and attract engagement before they are ready to buy. Because of this, it may take time to see results from your upper-funnel advertising, as these campaigns are intended to engage audiences who are not already engaged with your brand instead of driving sales to audiences that have already become engaged. In this example, customers who see your brand through a TV ad may buy it through a sponsor ad or shop for your specific product by selecting it from results in a search. While this purchase wouldn't go towards your Fire TV ad, it's still an important tactic for funnel building.

Aside from helping to grow your advertised product on Amazon, advertising can help to grow your entire brand. Therefore, it's important to examine total sales to see exactly how effective your advertising has been.

We also compiled a set of valuable marketing metrics to monitor progress during each stage of the funnel, so that you can determine which parts of your funnel are stronger and which ones need to receive more attention.

  • Increased awareness: reach, click-through rate (the number of clicks relative to the number of impressions)
  • Growing consideration: branded searches (the number of searches with your brand name in the query), detail page views, store traffic, the average cost per detail page view
  • Taking ownership of your aisle: new-to-brand sales and add-to-cart
  • Conversions: ROAS, ACOS, orders, cost per purchase
  • The retail readiness checklist: presenting a unique offer, a high rating, and 20+ product reviews
  • Increasing loyalty: repeat purchase rate, Subscribe & Save rate, the time between purchases

Interested in seeing why a full-funnel strategy drives better results? Shoot us a message and we’d be glad to assist you!

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