Case study
MMM and OCM studies validate that 64% of Amazon Ads impact happens off-Amazon
An apparel brand used Marketing Mix Modeling (MMM) and Omnichannel Metrics (OCM) to validate Amazon Ads impact. The result? 64% of attributed purchases occurred off-Amazon, with half driving brand-level sales beyond promoted categories.
Key learnings
64%
64% of ad-attributed purchases happen off-Amazon.
33%
33% of off-Amazon sales show brand halo effect
25%
25% of shoppers are loyal customers who buy across categories.
Goals
A leading apparel brand sought to understand the full impact of their Amazon Ads campaigns across multiple sales channels. Their primary objectives were threefold: first, they needed to understand their customer segments and their distinctive shopping behaviors across channels. Second, they wanted to validate how their Amazon Ads campaigns influenced off-Amazon conversions, especially the ones goaled to broaden customer reach. Third, they aimed to compare Omnichannel Metrics (OCM) findings with their Marketing Mix Modeling (MMM) analysis to create a comprehensive view of advertising effectiveness.
The brand also wanted more detailed feedback regarding MMM data granularity to understand which ad types were more or less conducive to driving cross-channel impact. This granular understanding would help them optimize their media investment and understand the true return on their advertising spend across different ad formats and channels. This multi-faceted approach would provide a more nuanced view of their advertising effectiveness and inform future campaign strategies.
- Director of Marketing, Leading Apparel BrandMMM showed Amazon Ads driving sales to our channels. OCM validation gave us confidence to optimize media spend.
Approach
The brand implemented a strategic measurement approach combining multiple methodologies in collaborations with Amazon Ads. First, Amazon Ads conducted a detailed customer segmentation analysis to identify several unique customer personas and their distinctive shopping patterns and behaviors. This analysis aimed to provide insights into the behavioral patterns between regular and loyal shoppers, with the latter likely to drive multi-channel sales growth and unlock this apparel brand’s future growth potential.
Next, Amazon Ads implemented OCM measurement for the brand’s Amazon DSP campaigns, specifically selecting campaign types focused on broadening customer reach. Through OCM, powered by Amazon Shopper Panel, the brand gained insights into how advertising on Amazon drives sales both on and off Amazon. The Amazon Shopper Panel, an opt-in program where participants share receipts from non-Amazon purchases and complete surveys, offers valuable insights about cross-channel consumer behavior. For off-Amazon sales channels, results showed direct-to-consumer channels as a key sales driver after on-Amazon ads exposure for the brand, consistent with client’s growth goals.
Finally, Amazon Ads and the brand together analyzed multiple quarters of MMM results to test two key hypotheses. First, whether OCM measurements can serve as leading indicators for future MMM results, and second, whether multiple MMM analyses can provide robust validation of Amazon DSP’s off-Amazon impact. This comprehensive measurement approach would allow us to validate findings across different methodologies and time periods.
Results
The measurement strategy revealed significant insights about cross-channel impact. The customer segmentation analysis identified that 25% of their customers were brand loyalists who shopped consistently throughout the year across multiple product categories.1 This finding highlighted the importance of deeper understanding of customer segments, identifying and reaching those who are more likely to contribute to multi-channel growth.
The OCM measurement delivered compelling evidence of cross-channel impact: 64% of purchases attributed to these campaigns occurred outside of Amazon.2 More importantly, 33% of these offline purchases demonstrated brand halo effects, driving sales beyond the specifically promoted categories.3 This validated the brand's hypothesis about Amazon Ads broader impact on their business.
The MMM analysis corroborated OCM findings, confirming Amazon DSP’s significant impact on driving traffic and sales to the brand’s direct-to-consumer channels. Multiple quarters of MMM results demonstrated that Amazon DSP’s off-Amazon effect was robust and not temporary. The brand’s analytics team is now testing ways to integrate OCM into MMM by breaking out previously aggregated ad types and aligning off-Amazon sales channels to have consistent breakouts across both measurement methodologies. This alignment between measurement approaches provided confidence in their measurement strategy and helped inform their media investment decisions, creating an even more robust measurement framework for future campaigns.
Sources
1–3 Amazon Internal, U.S., Q4 2024.