Amazon DSP Full Funnel Marketing Strategy


Feeling trapped in the challenges of Amazon Sponsored Ads? Limited to engaging only with customers actively searching for your brand or product?

It’s time to find a way out and navigate the customer journey using Amazon DSP’s full funnel strategy!

This blog serves as your guide to creating a cohesive strategy that resonates with customers, fosters brand loyalty, and boosts conversions.

What is a Marketing funnel (Advertising Funnel)?

A marketing funnel, also known as an advertising funnel, is a conceptual model that represents the stages a potential customer goes through before making a purchase. It typically consists of several stages, including awareness, interest, consideration, intent, and finally, the purchase.

What is a Full Funnel Advertising Strategy?

A Full-Funnel Advertising Strategy covers all stages of the customer journey, from initial awareness to conversion. It includes top-of-funnel activities to build brand awareness across multiple channels, mid-funnel strategies to engage and educate potential customers through various marketing channels, and bottom-of-funnel tactics to convert leads into customers. This comprehensive approach ensures that marketing efforts address the specific needs and behaviors associated with each stage of the journey.

Stages of Full Funnel Advertising Strategy

Top of the Funnel: This stage focuses on creating awareness and attracting a broad audience to the brand.

Middle of the Funnel: In this stage, the goal is to engage and nurture potential customers who have shown initial interest.

Bottom of the Funnel: The final stage concentrates on converting leads into customers and retargeting people who have purchased your products.

Marketing funnel

Why is it important?

Implementing a Full-Funnel Advertising Strategy on Amazon is essential due to the non-linear nature of customer journeys. Crafting tailored creatives, aligning messaging, and employing suitable campaign types for each stage of the funnel become imperative.

This comprehensive approach guarantees optimal visibility, engagement, and conversion chances within Amazon’s dynamic ecosystem, resulting in improved return on investment (ROI) and sustained success over the long term on the platform.

Advantages of Full Funnel Advertising Strategy?

Comprehensive Coverage: Targets potential customers at all stages of the buying journey, from awareness to conversion.

Maximized Visibility: Ensures broad exposure through top-of-the-funnel strategies, capturing a wider audience.

Engagement and Trust Building: Middle-of-the-funnel tactics nurture leads, providing valuable content and building trust with the audience.

Conversion Optimization: Bottom-of-the-funnel efforts focus on converting leads into customers, maximizing the chances of successful conversions.

Improved ROI: Addressing the entire funnel, allows for efficient allocation of resources, optimizing advertising spending for better returns.

Long-Term Customer Loyalty: Builds a strong brand presence, fostering customer loyalty and encouraging repeat business.

Data-Driven Insights: Provides valuable data on customer behavior at different stages, facilitating informed decision-making for future campaigns.

How to create a winning Amazon Full Funnel Advertising Strategy with Amazon DSP?

Creating a successful Amazon Full Funnel Advertising Strategy with Amazon DSP involves a distinct approach compared to Sponsored Ads, which target keywords, products, and categories directly. With Amazon DSP, the emphasis is on reaching specific audiences across various channels based on their interests, demographics, and past actions.

To kickstart your Amazon DSP journey, the initial step is to develop an Ideal Customer Profile for your brand. This profile should encompass:

  • Demography: Consider gender, age, region, country, etc.
  • Behavioral Characteristics: Explore interests, lifestyle, life events, etc.
  • Online Behavior: Understand your audience’s current online activities, including websites and apps they frequently use.

For example, if your product is dog ball toys, create an ad featuring a lively dog enjoying the toy. Tailor your campaign by targeting dog owners, those interested in dog-related products, and individuals who recently acquired a new dog.

Utilize tools like Amazon Insights to uncover which product attributes influence purchasing decisions. This valuable information can be applied to enhance your product detail page and boost conversions.

Once you have a comprehensive understanding of your customer profile, delve into employing different DSP campaigns and targeting strategies tailored to different stages of the advertising funnel.

Awareness Stage - Top of the Funnel

It represents the awareness phase, where you should aim to capture the attention of a broad audience and introduce them to your brand or product. At this stage, potential customers may not be actively looking for a specific product or solution but are instead exploring and becoming aware of various options. With DSP you can use the following ad type to increase brand awareness about your products:

  1. Amazon DSP Demographic and Device Targeting – Target Audience based on the desired buyer persona that you have created like gender, age, region, country, and device.
  2. Amazon DSP Lifestyle Targeting – Target Audiences based on their lifestyle behaviors like targeting people who bought a new car if you are selling car wipes or car-related products.
  3. Amazon DSP Life Event Targeting – Target people who can be your potential audience based on their life events.
  4. Amazon DSP Behavourial Targeting – Reach individuals who explored a specific category within the desired period.
  5. Amazon DSP Third-Party Audiences (External Data) – You can utilize data from various big data providers such as Mastercard, Oracle, Comscore, etc.

Consideration Stage - Middle of the Funnel

This phase represents the consideration stage, where the objective is to grab the attention of potential customers who are actively comparing various products. The goal is to enhance the consideration of your product compared to competitors when they are making decisions. With DSP you can use the following ad type to create consideration about your products:

  1. Amazon DSP In-Market Audiences – Target people who have recently expressed an interest in similar products or services.
  2. Amazon DSP Contextual Targeting – Display your ads on websites, apps, and product pages that are contextually relevant to your advertised products or services.

Conversion, Remarketing, and Loyalty Stage - Bottom of the Funnel

The “bottom of the funnel” (BOFU) refers to the final stage of the marketing funnel, where potential customers are close to making a purchase decision. At this stage, individuals have progressed through the earlier stages of awareness and consideration and are now actively considering a purchase or conversion. In addition to that, brand loyalty plays a crucial role in this funnel. Utilizing purchase remarketing allows you to actively engage with both new and existing customers, encouraging them to make repeat purchases.

  1. Amazon DSP Retargeting – Amazon DSP offers various kinds of retargeting such as Pixel Based, Brand Halo, Views, Purchased ASIN, and similar product targeting. You can use them to retarget the people who have shown interest in your product.
  2. Amazon DSP Third Party Audience (Own Website data) – Utilize Amazon ads tag manager to collect the traffic from your website which you can later use to target using Amazon DSP ads.

Sponsored Display Ads, with their views and purchase remarketing, can complement well with DSP in your overall bottom-of-the-funnel advertising strategy.

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Final Thoughts

By incorporating Amazon DSP into your Amazon Advertising strategy, you can unlock an interesting opportunity to engage customers across every stage of their shopping journey. From igniting initial brand awareness to nurturing engaged leads and converting them into loyal customers, Amazon DSP empowers you to deliver targeted messaging and achieve maximum impact. Remember, the key lies in understanding your ideal customer profile and leveraging the diverse targeting options available.

Frequently Asked Questions

What is the difference between Marketing and Sales funnel?

The marketing funnel focuses on attracting and engaging potential customers at various stages of their journey, from awareness to consideration, to convert them into leads. On the other hand, the sales funnel comes into play after leads are generated, focusing specifically on the process of converting those leads into actual customers through direct sales efforts. While the marketing funnel is broader and encompasses the entire customer journey, the sales funnel focuses more on the conversion stage.

What are some best practices for using Amazon DSP for full-funnel marketing?

  • Set clear objectives: Define your goals for each stage of the funnel (e.g., brand awareness, website traffic, conversions) to guide your campaign strategies.
  • Develop a customer journey map: Identify the different touchpoints customers encounter and tailor your messaging and creatives accordingly.
  • Create compelling ad creatives: Develop engaging ad formats and messaging that resonate with your target audience at each stage of the funnel.
  • Optimize and iterate: Continuously monitor campaign performance, make adjustments based on data insights, and iterate your strategies for better results.
  • Measure success holistically: Track key metrics across the entire funnel to understand the overall impact of your Amazon DSP campaigns.

How can I measure the success of my full-funnel campaigns on Amazon DSP?

Amazon DSP provides robust reporting tools and metrics to track campaign performance. Depending on your objectives, you can measure impressions, clicks, video views, website visits, add-to-cart rates, and ultimately, conversions and return on ad spend (ROAS).

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