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.
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.
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.
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:
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.
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:
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!)
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:
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.
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.
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:
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.
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.