Case Study #4


In general terms, retargeting is a form of programmatic advertising in which ads are shown to customers based on their past behavior, which on Amazon includes product searches, detail page views, and product purchases. Amazon categorizes these behaviors in retargeting audience segments, which then serve as the basis for campaign targeting. For instance, if a user searches for an item of your brand on Amazon, but does not purchase it directly, they will be reminded later: an ad for that product will be shown to them on both Amazon and third-party websites. The following scheme shows you how retargeting on Amazon works in practice.


Since retargeting is based on the customer’s existing interest and prior interaction, it is the most cost-effective option within programmatic marketing. Indeed, retargeting is the best tool for bringing external traffic back into the Amazon ecosystem and onto your product detail pages, while still maintaining high Return on Ad Spend (ROAS) and direct sales growth. As we’ll see, retargeting can increase ROAS dramatically. Coupled with Amazon’s authority on customer data analysis, no other advertising platform can deliver better, more precise targeting. Furthermore, Amazon automatically excludes customers who have seen the ad and subsequently bought the product from the retargeting segment, because those who have already converted are not likely to buy the product again. Customers do not like seeing repeat ads for a product they have purchased recently. This feature is key for saving the money spent and impressions shown on those with a low to non-existent probability of converting. On the other hand, certain types of products (fast-moving consumer goods, especially) are suitable for retargeting directly after purchase to promote the Subscribe & Save rate.


The following case study gives you a clear idea of what is possible with a strategically developed retargeting campaign. The goal of our client Wacom who manufactures graphic tablets was to sustainably increase sales across their entire product range. In addition to their classic target groups, professional graphic designers, additional new segments were addressed with a variety of offerings. With the help of Amazon’s first-party customer data, customer groups such as manga fans or creative mothers were targeted. First of all, we focused on placements on and off Amazon with the aim of attracting users to the products’ various detail pages. Video Ads with an average Detail Page View Rate (DPVR) of approx. 1.5% and a Click Through Rate (CTR) of 1.7% (FR) to 4.2% (UK) stood out across all countries. Cost-per-video completion was between 1.7 and 6.8 pence. By booking placements in the Amazon Christmas Store, customers who were looking for gifts for their loved ones were reached.


The results of this DSP setup can be seen above. Sales increased substantially across all countries. This case is an example of a judiciously coordinated and optimized campaign and is intended to demonstrate that the full potential of Amazon Advertising can only be exploited by combining the individual advertising formats and playing off their strengths.