Overview

In today’s retail media era, Amazon agencies face a new imperative: harness first-party data and AI to hit the bullseye with ad targeting. Imagine running campaigns that reach exactly the right shopper – not just by keywords, but by deep behavioural insight – across Amazon and beyond. In this Marketplace Masters webinar episode, host Paul Sonneveld (Co-Founder & CEO of MerchantSpring) sat down with Rupert Staines (CEO of Vector Retail Media) to demystify advanced audience targeting on Amazon.

The takeaway was clear: Amazon’s first-party retail data combined with the power of Amazon DSP (Demand-Side Platform) unlocks unprecedented precision in reaching consumers, driving higher engagement and ROI. This article synthesises those insights into actionable strategies for Amazon agency professionals – going beyond a recap to explore how data-driven advertising can elevate your campaigns in a cookie-less future. Let’s dive into how you can leverage Amazon audience targeting and cross-channel DSP campaigns to stay ahead of the curve and deliver winning results for your clients.

The Power of Retail Data-Driven Advertising on Amazon

At the heart of Amazon’s advertising edge is its massive pool of first-party retail data – the browsing and buying behaviour of hundreds of millions of shoppers. Unlike third-party cookie data, Amazon’s data captures real purchase intent: what shoppers search, view, add to cart, purchase, and even what they watch or listen to on Prime. According to Staines,

“retail data gives you real shopper behaviour in terms of what people are viewing and buying, and all the purchase intent and buying signals around that.”

In early deployments, campaigns informed by this shopper data have delivered “far superior performance based on people’s actual buying behaviour”, he notes, with Amazon’s sheer scale of first-party insights poised to have “a massive impact on digital advertising targeting as a whole.”

From a privacy standpoint, Amazon’s first-party data is a goldmine that’s ethically safer to use. Because Amazon users are logged in and have consented to Amazon’s terms, the data is already anonymised and aggregated for advertising uses. This means agencies can tap into rich audience insights without relying on invasive third-party cookies. Especially as privacy regulations tighten and cookies disappear, leaning into privacy-first advertising via Amazon’s dataset is both savvy and essential. Amazon’s platform keeps personal info under lock and key, so advertisers get the benefit of precise targeting without breaching consumer trust. In Europe’s strict GDPR landscape, for example, using Amazon’s built-in audiences can help agencies thread the needle – achieving personalisation while staying compliant.

Vector’s VIP Audiences: First-Party Data Meets AI for Precise Targeting

One of the thought leadership highlights from the webinar was Staines’s own methodology: Vector Intelligence Powered (VIP) Audiences. This approach exemplifies how agencies can build and optimise campaigns using first-party retail data. The idea is to combine Amazon’s granular shopper insights with domain expertise and AI modelling to create high-propensity audience segments. How does this work in practice?

First, it starts with audience modelling. Amazon collects thousands of data points (from product category views to brand preferences to Prime Video habits). VIP Audiences crunch this data to form cohesive cohorts – for example, “value-driven fitness enthusiasts” might be a segment gleaned from patterns in supplement purchases and fitness video streams. Staines explained that his team drills into both Amazon’s retail analytics and advertising data:

“We have a huge amount of retail insight… we understand how consumers engage across Amazon. That lets us drill deeper into Amazon data and build cohorts which Amazon’s own stock audiences don’t surface.”

By combining retail and ad signal analysis, agencies can craft custom audiences highly likely to respond to a given brand’s message.

Equally important is matching those audiences to the right moment and context. “Not everyone on Amazon is buying right now – some are just researching,” Staines reminds us. The key is using data to predict purchase intent timing. A sophisticated model might target shoppers who viewed a product multiple times but didn’t buy (indicating they’re on the fence) with a compelling offer. Or it could distinguish between a customer browsing toddler car seats (early-stage research) and one who added a specific seat to the cart (late-stage, high intent). The goal of audience modelling is to place ads when the consumer is most receptive.

“It’s about showing an advert when the person is absolutely in the right mind and the right place to respond positively to it,”

Staines says. In other words, data-driven timing + relevancy equals better engagement.

Once audiences are defined, the VIP approach uses Amazon’s DSP to activate these segments across channels. Staines highlights that Amazon’s ad tech now rivals Google and Meta in sophistication: agencies can automate targeting, bidding, and creative delivery to those custom cohorts, fine-tuning as data rolls in. Furthermore, AI algorithms (including Amazon’s own and third-party tools) can assist by finding lookalikes or adjusting bids in real time to optimise performance. The result? More personalised ad campaigns that speak directly to the interests and needs of niche segments, rather than a one-size-fits-all blast. This drives higher click-through rates and conversions, as the content “feels” more relevant to the viewer. It’s personalised marketing at scale – powered by real shopping data.

Beyond Amazon.com: Embracing a Cross-Channel Amazon DSP Strategy

When many hear “Amazon advertising,” they think of sponsored product ads on Amazon’s website. But one of the biggest opportunities for agencies today is Amazon DSP’s cross-channel reach. Amazon’s demand-side platform can serve ads not only on Amazon.com and the Amazon app, but across a vast network of channels – all informed by Amazon’s audience data. Yet, as Staines points out, these channels are still undervalued and underutilised by many marketers.

What channels are we talking about? Here’s a rundown of where Amazon DSP can take your campaigns:

• On-Amazon Display: Of course, placements on Amazon’s own retail site and mobile app – from banner ads to video slots – reaching shoppers as they browse the marketplace.
  
  
• Amazon-Owned Media: Amazon’s portfolio extends into entertainment. Prime Video (including its free, ad-supported platform Freevee) now offers video ad inventory. Amazon Audio Ads allow targeting listeners on Amazon Music and Alexa devices. These mediums let brands run sight-and-sound campaigns, backed by Amazon data on viewer/listener interests.
  
  
• Third-Party Websites (Open Exchange): This might surprise some – Amazon DSP plugs into 30+ external ad exchanges, meaning you can serve ads on premium websites and news publishers across the web. Essentially, Amazon’s DSP can function like any programmatic platform, placing your display and video ads on sites beyond Amazon. The huge difference is you’re using Amazon’s superior targeting data to decide who sees those ads. For example, you could show an ad for high-end pet food on a general news site, but only to users that Amazon knows are pet owners who buy premium pet supplies.
  
  
• Connected TV (CTV) beyond Prime: In addition to Prime Video, Amazon’s data can inform buys on other streaming TV channels and Connected TV apps through its DSP. This opens access to cord-cutters who consume content on smart TVs or devices like Fire TV – again with Amazon’s audience intelligence guiding the buys.
  
  

Integrating these channels is critical for a robust omnichannel marketing strategy. Each touchpoint plays a role: a connected TV ad might build initial awareness with a broad yet data-targeted audience; an audio ad on Alexa might reinforce the message during a daily routine; a display ad on Amazon’s site can capture intent when the shopper is actively comparing products. By sequence and frequency capping across Amazon DSP, agencies can orchestrate these exposures so they complement each other. Staines emphasises that advertisers must think beyond the Amazon storefront: “There’s still a habit to think of Amazon as just a shop… But the same media opportunity exists [via DSP] as Google or Meta – with better data.”

One particularly untapped channel Staines highlighted is audio advertising. With millions using Alexa and Amazon Music, Amazon’s DSP audio ads let brands engage consumers in an environment with few visual distractions. “Audio ads… I think [are] a huge opportunity,” he noted, suggesting agencies explore this format while competition (and costs) are still relatively low. Another is Prime Video’s ad inventory, which only recently expanded in markets like Europe – an area poised to “seriously challenge the legacy TV players” as it grows. Agencies that get in early on these channels can deliver unique reach for their clients before the crowd arrives.

Lastly, don’t forget non-endemic targeting. Amazon’s data isn’t just for sellers on Amazon; it can help any brand reach relevant audiences. Staines gave the example of pet insurance – a service you can’t buy on Amazon, but one that can benefit from Amazon’s knowledge of who the pet owners are. Amazon’s DSP allows “non-endemic” advertisers (those not selling on Amazon) to target Amazon audiences off-platform. For agencies with clients in finance, travel, automotive, etc., this is a game-changer. You could target luxury car ads to Amazon users who shop for luxury auto accessories, for instance. The bottom line: Incorporate Amazon DSP into your media mix not just for retargeting Amazon shoppers, but as a full-funnel, cross-web tool to maximise reach and engagement using retail-intent data.

Amazon Marketing Cloud: Gaining 360° Audience Insights

Data-driven marketers know that effective campaigns require continuous refinement. Enter Amazon Marketing Cloud (AMC) – Amazon’s relatively new analytics clean-room. AMC is a powerful (if complex) tool that agencies can use to analyse performance across the entire customer journey in a privacy-safe way. Staines described AMC as “a data clean room where you can combine the advertiser’s own data with Amazon’s buying signals.” The result is granular insight into how audiences interact with marketing at each touchpoint, enabling smarter optimisations.

How can Amazon agencies put AMC to work? Think of these scenarios:

• Holistic Attribution: In AMC, you can see how different ad formats contribute to a conversion. For example, maybe a shopper first saw a Sponsored Product ad (PPC) which made them aware, then later was retargeted by a DSP display ad that led to a purchase. AMC can attribute portions of credit to each, revealing the true “path to conversion”. With multi-touch attribution, you avoid overvaluing just last-click and can allocate budget more effectively between upper-funnel and lower-funnel tactics.
  
  
• Audience Pathing and Lifetime Value: AMC lets you answer questions like: how long does it take for a newly targeted customer to make a purchase? What is the Lifetime Value (LTV) of customers acquired via DSP versus those acquired via sponsored ads? By matching ad impressions to purchase cohorts over time, you identify your most valuable audience segments and what campaigns brought them in. This guides where to invest for the best long-term ROI.
  
  
• Cross-Channel Performance: Because AMC can ingest data from Sponsored Ads, DSP, and even your own CRM or website (in a secure, anonymised way), it provides a cross-channel view. You might discover, for instance, that a certain audience responds well to video ads but hardly engages with static banners – prompting you to shift creative format for that group. Or AMC could show that customers who saw both a video ad on Prime and a sponsored ad on Amazon had higher conversion rates than those who saw only one – validating a multi-channel approach.
  
  
• Custom Audience Creation: A particularly exciting feature – AMC can output custom audience lists based on complex criteria (which can then be pushed to Amazon DSP for targeting). For example, you could build an audience of “cart abandoners” (shoppers who frequently add items to cart but don’t check out) and re-engage them with tailored ads. Or identify “detail page lurkers” (viewed a product page multiple times with no purchase) and serve a promo offer to spur action. These highly specific segments go well beyond Amazon’s standard in-market audiences, giving agencies an edge in personalisation.
  
  

Admittedly, AMC requires some data science skills and was initially only open to larger advertisers. But as of 2024, Amazon has expanded access, and third-party partners offer tools to tap into AMC’s capabilities without heavy coding. The effort pays off: agencies that master AMC can continuously refine campaign strategies, adjusting targeting, frequency, and messaging based on what the funnel analysis shows. It’s about moving from gut-based decisions to evidence-based optimisations. (Stay tuned – as Paul and Rupert hinted, topics like AMC best practices could warrant a whole other deep-dive session!)

Thriving in a Cookie-Less World with First-Party Data

The advertising world is fast approaching a major inflection point: the depreciation of third-party cookies. Google’s Chrome is slated to phase out cookies, following Safari and Firefox’s lead, which means traditional behavioural targeting and attribution using third-party data will drastically change. How can Amazon agencies future-proof their strategies? The webinar conversation underscored that first-party data – like Amazon’s retail data – is the way forward in this “cookie-less future.”

Here’s why Amazon is uniquely positioned to weather the storm and how agencies can capitalise on it:

• Stable Identity & Login Data: Amazon has over 300 million active user accounts globally, most of whom stay logged in across devices. That persistent login acts like a first-party cookie that never gets deleted. It enables consistent tracking of user behaviour (in a privacy-compliant manner) as third-party tracking falls apart. Agencies can rely on Amazon’s audiences to keep targeting effective when open-web cookies go dark.
  
  
• Contextual Targeting with AI: Even without cookies, Amazon’s contextual intelligence and AI can match ads to relevant content. For instance, Amazon DSP now offers contextual keyword targeting on webpages (advertising.amazon.com), letting you display ads on pages related to specific keywords (e.g., an article about “summer camping gear”) – a modern twist on contextual advertising powered by Amazon’s AI. This approach doesn’t need individual tracking at all, and it’s a smart complement to audience-based buys.
  
  
• Building Your Own First-Party Data: Agencies should also advise brands to invest in their own data collection. Encourage clients to create loyalty programs, email sign-ups, or app engagements to gather first-party insights. These can then be onboarded into Amazon (via Amazon Marketing Cloud or direct DSP integrations) to enhance targeting. For example, a brand’s CRM list of past high-value customers could be used to create a lookalike audience within Amazon DSP, finding new prospects who resemble your best buyers(aicommerce.com). Such tactics will be crucial when third-party lookalikes are no longer viable.
  
  
• Measurement and Incrementality: In a cookie-less landscape, measuring ad performance will rely more on aggregated data and modelled insights. Tools like Amazon Marketing Cloud become indispensable for gauging incrementality (did my DSP ad genuinely drive a sale, or would that user have bought anyway?). By leaning on these privacy-safe measurement methods, agencies can continue demonstrating ROI and refining campaigns without user-level tracking.
  
  

Staines summed it up well: brands and agencies must embrace first-party data for targeting, personalisation, and measurement as the old shortcuts fade away. Those who adapt will not only survive the transition but can actually improve their advertising relevance. After all, if you can reach shoppers with the richness of Amazon’s data – which includes real purchase intent signals – you’re arguably in a better position than when you were chasing fragmented third-party cookies across the web. The task for agencies is to educate clients and get proactive: start shifting budgets to cookie-less solutions (like Amazon DSP, contextual targeting, and first-party audience building) now, rather than later.

Case Study Insights: DSP in Action vs. Amazon PPC

Numbers speak volumes, and the webinar delivered some eye-opening metrics from real campaigns using Vector’s VIP audience approach. Agencies considering Amazon DSP might naturally wonder: how does it stack up against the tried-and-true Amazon PPC (Sponsored Products, etc.)? According to Staines, the results have been remarkably positive – even to his own surprise.

“We’re actually finding that the DSP with our VIP audiences is providing a better ROAS than the PPC ads. I must confess, I never expected that,”

he shared. In several endemic brand campaigns (brands selling on Amazon), programmatic ads targeted by VIP segments outperformed the brand’s native Amazon search ads in terms of return on ad spend.

Think about that for a moment. Sponsored Product ads typically convert well because they catch shoppers actively searching for related items. The fact that DSP display ads – historically considered higher-funnel – delivered equal or higher ROI suggests that precise audience targeting can trump intent-context alone. By showing tailored creatives to users who have exhibited strong purchase signals (even off Amazon), these brands saw more efficient conversions. Staines reported seeing anywhere from +80% to +200% improvements in key metrics when using their data-driven audiences, including higher click-through rates, more new-to-brand shoppers acquired, lower cost per acquisition, and higher detail page view rates. In essence, relevant reach = better efficiency.

One reason for this success is the creative flexibility of DSP. Unlike Sponsored Products, which are auto-generated listings, DSP ads allow custom images, videos, and copy. Brands can craft compelling messages or lifestyle visuals that resonate with the target audience’s interests or pain points. Staines noted that this creative messaging advantage likely contributed to higher engagement: with DSP personalised ad creatives, you can hook the consumer emotionally or highlight a unique value prop in a way a plain product ad cannot. For example, a home fitness brand could run a DSP video showing a busy parent using their product in a daily routine – served specifically to Amazon users who browsed fitness gear and have young kids at home (data you might deduce from Amazon’s audience insights). That relevancy and storytelling can prompt action far better than a generic product image in search results.

Another factor is cost dynamics. As many agencies know, Amazon PPC auction prices have climbed substantially with the influx of sellers and brands investing in sponsored ads. In some categories, cost-per-click has soared, squeezing ROAS. Amazon DSP, on the other hand, is still relatively underutilised in certain markets, meaning CPMs and CPCs (when translated) can be more favourable. By carefully managing frequency caps and bidding, agencies can achieve efficient reach on DSP without the fierce keyword bidding wars of search ads. Staines cautioned that you must watch for cannibalisation – ensure that your DSP efforts are truly incremental and not simply poaching sales from your own sponsored ads or organic traffic. But when executed well, the combined strategy can be synergistic: PPC captures in-market buyers, while DSP audiences expand the funnel and even re-engage those who didn’t convert via search.

For non-endemic campaigns (brands not selling on Amazon), success is measured in different terms (like CPA or brand lift). Here too, Staines sees strong results. Brands using Amazon data to power awareness campaigns – for instance, a CPG brand running online video ads via Amazon DSP – have achieved lower cost per acquisition and higher engagement versus broad demographic targeting. The rich retail data allows them to hit niche audiences (e.g. “pet parents who buy organic food” for a premium pet insurance ad) with minimal waste. As these case studies become more public, expect more advertisers to allocate budget to Amazon DSP for upper-funnel outreach, not just retargeting.

Best Practices for Agencies: Skills, Tools, and Avoiding Pitfalls

How can Amazon agencies put all this into practice? Evolving from a pure PPC shop to a multichannel, data-driven agency requires intentional steps. Here are some practical tips and best practices, distilled from the webinar discussion and industry experience:

• Invest in the Right Talent: Successfully running programmatic advertising on Amazon DSP demands a different skill set than manual PPC bid tweaking. Staines recommends hiring or training practitioners experienced in programmatic and data analysis. Look for team members who understand audience segmentation, real-time bidding, and cross-channel strategy. Having someone who can navigate the DSP console, AMC queries, and interpret data will elevate your service offering.
  
  
• Leverage Advanced Tools: Don’t shy away from technology. Use Amazon’s tools (DSP platform, AMC, Amazon Attribution) and third-party software that can simplify data crunching or campaign management. There are tools that help auto-generate AMC reports or visualise customer journey insights, for example. Also, make sure to utilise Amazon’s advertising API or bulk features for efficiency. Automation can handle repetitive tasks, freeing your team to focus on strategy. (Note: If you need a unified view, MerchantSpring’s analytics platform even links Amazon DSP data alongside marketplace sales, helping agencies connect ad spend to outcomes – a direct way to impress clients.)
  
  
• Educate and Align Clients: One “banana skin” Staines mentioned is the organisational silo on the client side. Often, brand marketers are used to Google/Facebook metrics and don’t yet grasp retail media’s value. It’s on the agency to coach clients on the new paradigm – explain how Amazon’s first-party data can unlock targeting precision not possible elsewhere, or how DSP can drive mid-funnel consideration, not just awareness. Set expectations clearly: for example, clarify that DSP may show higher funnel metrics like detail page views, but with proper attribution, those lead to incremental sales. When clients understand the retail media approach, they’re more likely to support and invest in it.
  
  
• Pilot and Scale: Start with test budgets for DSP if you or your client are new to it. Identify one or two client accounts and run a small-scale pilot campaign using a couple of custom audiences. Monitor metrics closely (CTR, conversion rate, ROAS, new-to-brand percentage, etc.) and compare against a control or historical PPC performance. Use these initial wins and learnings to craft case studies. This data will be invaluable to convince other clients (and internal stakeholders) to scale up Amazon DSP efforts. It also helps fine-tune your tactics – you might discover, for example, that one type of audience segment greatly outperforms another, guiding your strategy going forward.
  
  
• Holistic Campaign Management: When you add DSP to your arsenal, manage it alongside PPC in a coordinated way. Consider budget allocation across sponsored ads and DSP as a whole, rather than siloed budgets. Use AMC or Amazon’s reports to ensure you’re not double-serving too much or cannibalising sales. For instance, if someone clicked a Sponsored Product ad, you might suppress them from a DSP retargeting ad for a few days to avoid overlap. Conversely, use DSP to re-engage those PPC missed (like advertising a complementary product via DSP to someone who bought another item of your brand). Create cross-channel reporting to show clients the full impact of Amazon advertising – MerchantSpring’s dashboards (or your own spreadsheets) can combine sales from PPC and DSP, providing a unified view of ROI that clients will appreciate.
  
  
• Differentiate Creative and Messaging: Exploit the creative freedom of DSP. Don’t just reuse your Amazon product images; design banner ads or video ads that tell a story or highlight benefits, addressing the target audience’s interests. Also, tailor the message per audience. For example, an ad targeting repeat customers could say “We miss you – upgrade to our newest version for 20% off!”, while a prospecting ad for a new audience stresses your brand’s core value proposition. Dynamic creative optimisation (either manual or via tools) can test multiple creatives to see what resonates best with each segment. Remember, the data can get you in front of the right people – but it’s the creativity that will compel them to click and convert.
  
  

By adopting these practices, agencies can avoid common pitfalls (like mis-targeted spend or client scepticism) and truly implement sophisticated Amazon advertising strategies that drive results.

Conclusion: Elevate Your Agency with Data-Driven Amazon Advertising

In the evolving world of Amazon marketing, agencies that leverage data-driven audience targeting will lead the pack. The conversation with Rupert Staines illuminated a path forward: blending Amazon’s unrivalled first-party retail data with advanced tools like Amazon DSP and AMC to deliver personalised, impactful campaigns across every channel – from Amazon’s site to streaming TV and beyond. The payoff is higher customer engagement, more efficient ad spend, and ultimately better ROI for brands. Crucially, this approach positions agencies and their clients to thrive even as cookies crumble and privacy standards rise, by leaning on privacy-safe, first-party intelligence.

As an Amazon agency professional, now is the time to transform how you plan and execute campaigns. Embrace Amazon’s DSP to expand your reach and creativity. Dive into audience modelling and start harnessing that rich shopper data to refine your targeting. Educate your team and your clients about the power of retail media – it’s not just the latest buzzword, but a fundamental shift in digital advertising. Those who adapt early will secure a competitive advantage and become true marketplace masters for their clients.

Ready to elevate your strategy? Watch the webinar replay on demand to hear the full discussion straight from the experts’ mouths and see real examples of these tactics in action. If you’re eager to apply these insights to your own agency services, consider exploring tools like MerchantSpring’s analytics platform to connect the dots between advertising and sales performance – we’d be happy to book a demo and show you how it works. And finally, don’t miss out on future Amazon insights – subscribe to our newsletter for the latest strategies and success stories. It’s time to put first-party data at the centre of your Amazon advertising and watch your ROI soar.