Podcast Summary: The CPG Guys – "Multi-Touch Attribution Measurement with Amazon’s Paula Despins"

Release Date: November 6, 2024

Hosts: Peter V.S. Bond & Sri Rajagopalan
Guest: Paula Despense, VP for Amazon Ads Campaign Measurement Planning and Amazon Marketing Cloud (AMC)

1. Introduction to Multi-Touch Attribution

In this episode of The CPG Guys, co-host Sri Rajagopalan welcomes Paula Despense from Amazon Ads to discuss the intricacies of multi-touch attribution measurement. Recording from the Amazon Ad Partners Content Studio at the 2024 Unboxed event in Austin, Texas, the conversation delves into how Amazon leverages its extensive ecosystem to enhance ad performance measurement.

2. Measurement Strategy and Vision

Sri Rajagopalan initiates the discussion by addressing the challenges Amazon faces in measuring ad performance across its platform and ecosystem.

Paula Despense [03:23]: "I actually think of it as opportunities because being able to understand and utilize the signals from everything customers are experiencing... is a hugely exciting opportunity."

Paula emphasizes Amazon's ability to integrate diverse customer interactions—from streaming TV and podcasts to music—enabling brands to gain a comprehensive understanding of their ad effectiveness across various touchpoints.

3. Leveraging Artificial Intelligence and Machine Learning

The conversation transitions to the role of AI in improving attribution models.

Paula Despense [04:49]: "What we're going with multi-touch attribution is really exciting because... we have randomized control trials or AB tests operating behind the scenes."

Paula highlights how Amazon employs machine learning to analyze numerous signals, conducting hypothesis-driven experiments to determine the true impact of ads on consumer behavior. This approach allows for more accurate attribution by simulating "what if" scenarios at scale.

4. Advancements in Multi-Touch Attribution

Sri probes deeper into multi-touch attribution advancements.

Paula Despense [06:32]: "Today it's still really common in the industry that everyone uses Last Touch... but multi-touch can show how other ad touch points contribute."

Paula contrasts traditional last-touch attribution with multi-touch models, illustrating how the latter provides a more nuanced view of the customer's journey by recognizing the influence of multiple advertising interactions.

5. Enhancing Ad Performance and Insights

The hosts explore moving beyond basic metrics like click-through rates (CTR) and return on advertising spend (ROAS).

Paula Despense [09:50]: "We have released things like new to consideration and Long Term Sales Insights... that help advertisers connect the dot on how early funnel ads drive long-term sales."

Paula discusses Amazon's initiatives to offer deeper insights into how initial ad exposures influence long-term customer behavior and sales, enabling brands to make more informed investment decisions.

6. Content Strategies Across the Purchase Funnel

Sri and Paula discuss the importance of tailored content at different stages of the purchase funnel.

Sri Rajagopalan [11:58]: "Content used to drive discovery is fundamentally different than the content used for consideration and evaluation."

Paula agrees, noting that evocative, mood-driven content is effective for awareness, while detailed product information facilitates consideration and conversion. She underscores the necessity of a fully populated Product Detail Page (PDP) to support informed purchasing decisions.

7. Cross-Device Attribution in a Privacy-First World

Addressing privacy concerns, the discussion turns to handling cross-device attribution.

Paula Despense [14:24]: "We always want to respect the choices that customers are making... we are able to understand how all of those touch points connect together in a fairly direct way."

Paula explains Amazon's approach to cross-device attribution, balancing comprehensive tracking with stringent privacy measures, leveraging logged-in user data while maintaining anonymization and aggregation to protect individual privacy.

8. Measuring Long-Term Brand Impact

The conversation shifts to assessing the long-term effects of Amazon ads on brand performance.

Paula Despense [15:54]: "Long Term Sales Insights gives you the 12-month purchases associated with each of those stages."

Paula elaborates on how Amazon tracks early funnel touchpoints and their correlation with long-term sales, aiding brands in understanding sustained customer engagement and loyalty beyond immediate conversions.

9. Amazon Marketing Cloud (AMC) as a Clean Room

Sri introduces AMC, highlighting its role as a secure environment for data analysis.

Sri Rajagopalan [17:31]: "Amazon Marketing Cloud, amc. It is your clean room... all of those signals that you have from your side are accessible to brands in a privacy-safe environment."

Paula discusses the unique advantages of AMC, emphasizing its flexibility, scalability, and the ability to integrate first-party data without compromising privacy. This enables brands to perform sophisticated audience analyses and derive actionable insights.

10. Collaborations with Third-Party Measurement Partners

The importance of partnerships in enhancing measurement capabilities is addressed.

Paula Despense [26:39]: "Our omnichannel metrics for CPG uses a third-party measurement partner signals in order to measure that."

Paula underscores Amazon's commitment to supporting brands by integrating third-party measurement solutions, facilitating comprehensive cross-channel performance comparisons that help advertisers optimize their budgets effectively.

11. Future Innovations in Ad Measurement and Attribution

Looking ahead, Paula shares her vision for the evolution of ad measurement.

Paula Despense [28:25]: "At Amazon we have the opportunity to drive forward in a big way there because of the powerful signals that we have."

Paula anticipates advancements in understanding the customer journey through more detailed multi-touch attribution models, further enhancing the ability to connect ad exposures with long-term consumer actions and refining full-funnel marketing strategies.

12. Conclusion

The episode wraps up with Paula thanking the hosts and reiterating Amazon's dedication to evolving ad measurement tools to support brand growth and efficient media investment.

Paula Despense [29:36]: "Thanks so much for having us."

Sri Rajagopalan encourages listeners to engage with The CPG Guys on various podcast platforms and LinkedIn for more insightful content.

Notable Quotes:

• Paula Despense [03:23]: "Being able to understand and utilize the signals from everything customers are experiencing... is a hugely exciting opportunity."

• Paula Despense [04:49]: "We have randomized control trials or AB tests operating behind the scenes."

• Paula Despense [06:32]: "Last Touch is a really good shortcut... but multi-touch can show how other ad touch points contribute."

• Paula Despense [09:50]: "Long Term Sales Insights helps advertisers connect the dot on how early funnel ads drive long-term sales."

• Paula Despense [15:54]: "Long Term Sales Insights gives you the 12-month purchases associated with each of those stages."

• Paula Despense [28:25]: "At Amazon we have the opportunity to drive forward in a big way because of the powerful signals that we have."

This detailed summary captures the essence of the podcast episode, highlighting Amazon's innovative approaches to multi-touch attribution and ad measurement, the integration of AI and machine learning, the significance of Amazon Marketing Cloud, and the future directions in ad performance analysis. Listeners gain insightful perspectives into how Amazon empowers brands to optimize their advertising strategies in a complex, privacy-conscious digital landscape.