Case Study

From local insights to global strategies: GroupM scales Nestlé’s AMC reporting with custom solution

A women

Goals

  • Gain full visibility into advertising metrics
  • Maximize return on investment

Approach

  • Built a bespoke Amazon Marketing Cloud–based analytics solution to use across business units
  • Created custom dashboards to visualize insights
  • Analyzed ad spend across channels and funnel levels to optimize budget allocation
  • Created audiences in Amazon Marketing Cloud and activated them through Amazon DSP campaigns

Results

  • 100 monthly users across nine global business units
  • 10% lift in potential revenue measured

Originally founded in 1866, Nestlé has expanded far beyond its early days selling condensed milk and infant formula in Switzerland to become the largest food and beverage company in the world today. Despite such success, Nestlé continues to prioritize growth, using insights from tools like Amazon Marketing Cloud (AMC) to optimize their marketing strategies and connect with a broader audience. But the company’s global reach—with a variety of products spanning many categories and regions—makes it no easy task for Nestlé to gain full visibility into their advertising metrics.

Seeking solutions to this challenge, Nestlé turned to GroupM, a partner in the Amazon Ads Partner Network. GroupM built a globally scaled, cloud-powered analytics architecture that empowers Nestlé to discover new insights, unlock revenue opportunities, and maximize their return on investment (ROI).

Unifying global advertising strategies

With more than 2,000 brands ranging from snacks to pet care, Nestlé is the world’s largest food and beverage company. The brand caters to a wide range of shoppers through numerous business units located in regions all over the world, each one responsible for deploying, managing, and optimizing its own Amazon Ads campaigns.

This diverse landscape produced multiple AMC instances that were tailored to each region. As each business unit managed its own strategies and campaigns, Nestlé wound up with a disconnected, fragmented approach that proved effective at meeting local needs but prevented the company from maximizing AMC’s value to acquire deeper insights into customer behavior and media performance. Recognizing the potential of centralized insights, Nestlé embarked on a journey to scale their AMC architecture globally.

Innovating Nestlé’s AMC architecture

To support Nestlé’s efforts, GroupM began to build a bespoke AMC-based analytics solution that could be deployed across business units. First, they developed an Amazon Web Services (AWS) framework based on Nestlé’s AMC architecture. GroupM created development environments and conducted proofs of concept to identify and test AMC use cases across brands and regions. Once the framework was established, Nestlé’s information was migrated to a serverless data lake architecture on AWS. GroupM then deployed the use cases into production.

Next, GroupM rolled out AMC reporting capabilities to 20 AMC instances across Nestlé’s business units. They built custom dashboards, such as campaign performance analytics and sales funnel attribution analytics, to visualize insights from the AMC use cases. GroupM also created audiences within AMC and activated them through Amazon DSP campaigns. In one instance, they created a remarketing audience for users who had clicked on the brand’s Sponsored Products ads but did not make a purchase; early results show that this initiative has been driving a more efficient return on ad spend.

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Amazon Marketing Cloud is truly raising the bar by unlocking holistic consumer insights. Our approach to the data lake has also introduced new possibilities and transformed our ways of working with our brands and partners.

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- Nitesh Chovhan, director of IT for the global Amazon acceleration team, Nestlé

Harnessing insights for global optimization

Nestlé’s brand managers can now use the AMC architecture to focus on turning insights into actions. For example, the brand analyzed ad spend across channel and funnel levels based on a multitouch attribution model. Using this approach, GroupM helped Nestlé measure a 10% lift in potential revenue that could be achieved by shifting budget between tactics for one of its business units.1 They then attributed the sales results for each media strategy across individual business units and adjusted budgets for different Amazon Ads tactics.

Nestlé eventually saw the global AMC architecture draw 100 monthly users across nine business units,2 and made plans to scale the solution to 16 units across nine countries by the end of the year.3 As Nestlé continues to grow, GroupM will continue to support their AMC efforts, making sure the architecture remains agile, adaptable, and resilient.

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With the help of GroupM and Amazon Ads, we were able to harness the power of Amazon Marketing Cloud and build a global data lake for Nestlé. This has empowered us to access deeper insights and drive deeper connections, helping us make smarter decisions and drive higher ROI.

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- William Hart, global data, audiences, and analytics lead, Nestlé

1-3 Nestlé, global, 2023