Marketing
23 January 2023
Amazon Marketing Cloud adds Sponsored Brands signals
In Amazon's clean room, advertisers just got access to signals from an additional ad type.
Photo by Christian Wiediger on Unsplash
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Amazon Marketing Cloud is adding new signals from Sponsored Brands for advertisers seeking to gain insights that sharpen their media strategy on America’s largest ecommerce platform, and beyond.
Amazon Marketing Cloud, also known as AMC, is Amazon’s privacy-safe data clean room solution. This is a cloud-based space where advertisers can perform analytics across different signals, including those off Amazon, without having to share identifying data about customers or their business.
AMC announced that it will now feature Sponsored Brands signals, which provide data from Amazon’s customizable CPC ads that feature a brand logo and multiple products. Amazon will provide engagement and conversion signals for this ad type.
This addition will allow advertisers to more holistically measure impact of sponsored ad investments, perform cross-media attribution and gain a more thorough understanding of the customer journey over a year, Amazon said.
Amazon is also adding analytic dimensions like keywords, search terms and ad placements with this launch.
Examples of analyses that can be performed with this capability include audience reach analysis, keyword analysis, audience reach attribution and path to conversation.
What does it mean for advertisers?
First party data signals: With the privacy-oriented shifts taking place in digital marketing, first-party data obtained directly from purchases and loyalty programs is becoming a key building block of advertising. But the missing piece is often the ability to perform analysis on what worked with one audience that can help reach the next audience. Facebook rose to prominence in part because of its targeting technology, but it also had an unparalleled understanding of what converted and ability to segment potential buyers into very specific groups. With the rise of retail media, first party data collected directly from retailers at a purchase holds the promise of unlocking the same powerful capabilities, but the sharing of data across platforms that is a key attribute of such advantages carry competitive and privacy risks. Clean room solutions allow such analytics to be performed on data collected from multiple ad sources,
AMC growth: Amazon Marketing Cloud has grown quickly over the last two years, and is gaining importance in the ecosystem. It combines the clean room approach with the ability to access data from Amazon Ads, which is the largest retail media network. This release continues a wave of expansion of AMC’s capabilities. In October, Amazon added Sponsored Display and digital subscription signals. AMC also features signals from Sponsored Products, Amazon DSP and Sizmek Ad Suite. The ecosystem around Amazon Marketing Cloud is also growing quickly, as agencies, tool providers, system integrators and software companies seek to help advertisers use the capabilities of this solution to their fullest.
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Marketing
09 June 2023
'There's a lot of ways to frame value'
Campbell Soup Company CEO Mark Clouse offered thoughts on messaging amid inflationary shifts in consumer behavior.
Photo by Kelly Common on Unsplash
After months of elevated inflation and interest rate hikes that have the potential to cool demand, consumers are showing more signs of shifting behavior.
It’s showing up in retail sales data, but there’s also evidence in the observations of the brands responsible for grocery store staples.
The latest example came this week from Campbell Soup Company. CEO Mark Clouse told analysts that the consumer continues to be “resilient” despite continued price increases on food, but found that “consumers are beginning to feel that pressure” as time goes on.
This shows up in the categories they are buying. Overall, Clouse said Campbell sees a shift toward shelf-stable items, and away from more expensive prepared foods.
There is also change in when they make purchases. People are buying more at the beginning of the month. That’s because they are stretching paychecks as long as possible.
These shifts change how the company is communicating with consumers.
Clouse said the changes in behavior are an opportunity to “focus on value within our messaging without necessarily having to chase pricing all the way down.”
“No question that it's important that we protect affordability and that we make that relevant in the categories that we're in," Clouse said. "But I also think there's a lot of ways to frame value in different ways, right?”
A meal cooked with condensed soup may be cheaper than picking up a frozen item or ordering out. Consumers just need a reminder. Even within Campbell’s own portfolio, the company can elevate brands that have more value now, even if they may not always get the limelight.
The open question is whether the shift in behavior will begin to show up in the results of the companies that have raised prices. Campbell’s overall net sales grew 5% for the quarter ended April 30, while gross profit margins held steady around 30%. But the category-level results were more uneven. U.S. soup sales declined 11%, though the company said that was owed to comparisons with the quarter when supply chains reopened a year ago and expressed confidence that the category is seeing a longer-term resurgence as more people cook at home following the pandemic. Snacks, which includes Goldfish and Pepperidge Farm, were up 12% And while net sales increased overall, the amount of products people are buying is declining. Volumes were down 7%.
These are trends happening across the grocery store. Campbell is continuing to compete. It is leading with iconic brands, and a host of different ways to consume them. It is following that up with innovation that makes the products stand out. Then, it is driving home messaging that shows consumers how to fit the products into their lives, and even their tightening spending plans.
Campbell Soup is more than 150 years old, and has seen plenty of difficult economic environments. It is also a different business today, and will continue to evolve. At the end of the day, continued execution is what’s required.
“If it's good food, people are going to buy it, especially if it's a great value,” Clouse said.
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