3 ways modeled conversions can help brands reach consumers

The advertising industry is constantly evolving. With the potential phasing out of the third-party cookie, marketers are shifting their approach to how they continue to reach audiences with relevant messaging. According to the 2021 Nielsen Total Audience Report, 1 in 3 Connected Consumers will make a purchase after seeing or hearing an ad that is relevant to them.¹ This is why it is important for advertisers to use planning tools that help them make sure their campaigns are reaching the right consumers with the right messages as the ad addressability landscape changes.

A 2022 report by the Interactive Advertising Bureau showed that 68% of companies said they have taken steps to prepare for the post-cookie world.² However, only 10% of these companies said their current ability to measure performance is “excellent.”³ To stay ahead as the industry transitions, advertisers need to embrace durable solutions that allow them to understand how to deliver meaningful experiences to consumers.

As brands work to adapt to this new landscape, Amazon Ads is evolving their measurement methodologies.

To offer a more complete view of campaign results, Amazon Ads has launched modeled conversions to account for conversions attributable to your campaign but which are not directly measured. Modeled conversions help measure the full value of your campaign, in cases where the link between an ad interaction and a conversion event are not available. Directly measured conversions and modeled conversions are reported together as a combined result in campaign reporting. To model conversions, we use signals from directly attributable conversions across owned and operated Amazon properties to predict conversions for non-addressable audiences to tailor modeling to your ad line.

Here are three ways modeled conversions can help drive advertiser performance as the ad addressability landscape changes.

1. Understand total campaign impact

As consumers use more devices throughout an increasingly nonlinear path to purchase, it can be difficult for brands to measure total campaign engagement across these different touchpoints. Modeled conversions is a comprehensive approach to a holistic representation of campaign performance, regardless of ad format or delivery channel.

With these insights, marketers can understand conversions that occur as a result of ads served to non-addressable audiences. Marketers can use this knowledge to help craft campaigns that are more relevant to their consumers.

2. Harness technology to help inform smarter budget decisions

Brands are working hard to ensure that they are making the most of their advertising budgets. With internal bidding and budget algorithms, modeled conversions can help marketers make informed business decisions. The Amazon Ads technology uses signals from directly attributable conversions. Models leverage these signals from hundreds of millions of Amazon interactions worldwide, as well as contextual features from served ads and campaign features, to tailor estimates to your ad line. Models continuously improve as directly measurable conversion inputs accrue. These insights can help brands make smarter decisions while optimizing how they spend their advertising budgets.

3. Look ahead to optimize future campaigns

When one campaign ends, another begins—and brands are always working hard to deliver more relevant messaging to customers. By understanding what worked well and what needs improvement, combining modeled conversions with directly attributable conversions can help provide actionable insights for brands to inform future campaigns.

Modeled conversions are included on Amazon DSP ad lines that reach non-addressable audiences on web, mobile, and video inventory. With these insights, brands can help understand their performance and work to optimize future campaigns to better reach consumers across major touchpoints.

As the industry continues to evolve, modeled conversions can help brands make decisions about where and how they invest in advertising. Now is an exciting time for advertisers to test and learn with new, creative ways to better connect with consumers. And more ways to measure performance can help ensure that advertisers can continue to drive message relevance at scale.