4KMILES helps Flexispot enhance channel strategy with Amazon Marketing Cloud

Established in 1998, Flexispot’s mission is to create a work environment that prioritizes efficiency, productivity, and well-being. Offering a wide range of ergonomic products for the home, office, and remote work, Flexispot engineers their products using quality materials to enhance customer’s health and performance.

Flexispot used a combination of Amazon DSP ads and Sponsored Products campaigns to promote their products and drive conversions in Amazon’s store. The brand wanted to better understand the effectiveness of their Amazon DSP investment, and quantify whether their upper-funnel tactics helped deliver incremental reach and higher purchase rate compared to using Sponsored Products alone. Moreover, they hoped to identify the ideal frequency setup and day-parting strategy that would lead to the optimal conversion outcomes.

To gain further insights into these questions, Flexispot’s agency 4KMILES registered the brand for Amazon Marketing Cloud (AMC) (https://advertising.amazon.com/solutions/products/amazon-marketing-cloud?ref_=a20m_us_lbr_cs_flxspt_p_amc), the holistic measurement and analytics solution from Amazon Ads. Utilizing the secure, privacy-safe, and dedicated cloud-based clean room environment, 4KMILES conducted a series of analysis spanning across 23 Amazon DSP and 37 Sponsored Products campaigns over a one-month period for the brand.

4KMILES’ data science team discovered through AMC that an 18% increase in dollar allocation to Amazon DSP display ads led to a 23% lift in impression volume and a 91% uplift in unique reach.1 Moreover, conversion path analysis in AMC showed that the purchase rate of audiences exposed to multiple touchpoints across the shopping funnel was 18.9x higher than those who only saw Sponsored Products ads.2 These results indicated display ads’ effectiveness in bringing more customers and the incremental value to driving conversion. In addition, the agency also found that higher frequency levels generally yielded better purchase rates. Looking at day-parting, the budget in the afternoon was low while the conversions seemed to be high after 2PM, which indicated that there was opportunity to drive more purchase in the afternoon.3

"AMC provides a more transparent way for us to understand the interaction between Amazon DSP and Sponsored Products. The analysis shows the downstream impact of upper-funnel ads on conversion campaigns, which increases our confidence in the investment of brand-focused ads. The conversion path analysis also gives us a new way to view customer shopping behaviors. We are excited to utilize insights from AMC to inform our marketing and business decisions, and we look forward to seeing more signals and analytic dimensions being added to AMC."

— Emma Li, Manager, Flexispot

4KMILES then helped apply these learnings to Flexispot’s advertising strategy and further fine-tuned the brand’s Amazon DSP tactics to optimize audience reach and business results. For example, 4KMILES helped the brand apply a frequency cap (https://advertising.amazon.com/library/guides/frequency-capping) of 12 and implemented time-based advertising in the afternoon and at night to drive additional conversion opportunities when the winning bid price was low while purchase rates were high.

“AMC is a powerful tool that helps further demonstrate the positive influence of a multi-channel strategy to our advertiser’s business. We are excited to onboard more advertisers to AMC and share these insights with them.

— Steven Chen, Founder and CEO, 4KMILES

1-3 Advertiser-provided data, 2021