The Latest Developments to Amazon DSP's New-to-Category Audiences
In early November, we shared our thoughts surrounding Amazon DSP’s new-to-category audiences. Since then, this offering has developed rapidly and there’s much to elaborate upon. Below we share some of the most notable takeaways from what has changed over the last few weeks. Continue reading for updates and to learn more about what’s possible when brands leverage Amazon DSP.
Additional New-to-Category Audiences are Available
When the new-to-category audiences first became available there were only 12 to choose from. But, as of this writing, there are 61 additional new-to-category audiences for a total of 73.
After analyzing these additional audiences, MPS strategists have noticed little overlap among them. However, in our last blog post, overlap was a common trend among the initial 12 audiences. It will be interesting if we can discern whether these audiences are consistent online shoppers or whether they’re classified only because they’re looking for deals during Q4.
Changes to How New-to-Category Audiences are Classified
In addition to the growing number of audiences, MPS strategists have noticed a change in how they’re classified. Previously, all the audiences were classified as people who have bought within a specific category during the last 30 days. Now there are 19 audiences classified as new-to-category browsers.
These audiences consist of people that have browsed a category within the last 30 days but haven’t made a purchase within the last five years. It’s worth mentioning, five years is the longest timeframe Amazon has allowed advertisers to leverage. Usually, if our team wants to exclude purchasers of a specific product or brand from our campaigns, one year is the furthest we can date back. New-to-brand metrics are also based on a one-year lookback window.
With the above in mind, 16 of 19 of the new-to-category browsers are consumer electronics categories. The remaining three are golf, grills and outdoor cooking, and exercise and fitness categories. Having this many consumer electronics new-to-category browsers makes sense. Especially when most shoppers won’t purchase the same product within the same year. Of course, there are exceptions to this, but these audiences and browsers could offer advertisers a more accurate measure of new-to-brand shoppers.
Grocery is the Category Showing the Most Growth and Potential
When taking an even closer look, the category that grew the most with these updates was grocery. We anticipated this and are happy to see it has become much more refined. It was originally only one audience (grocery product purchasers) and has become a list of 25 as seen below.
- Breads & Bakery
- Breakfast Foods
- Burritos & Wraps
- Candy & Chocolate
- Chicken Wings
- Dairy, Cheese and Eggs
- Deli & Prepared Foods
- Drink Mixes
- Energy Drinks
- Food & Beverage Gifts
- Fresh Meal Kits
- Frozen Food
- Frozen Pizza
- Home Brewing & Winemaking
- Meat & Seafood
- Meat Substitute Burgers
- Meat Substitutes
- Pantry Staples
- Salty Snacks
- Snack Foods
Most of the abovementioned categories are considered perishable. This leads us to believe the data for these audiences is sourced from purchases of products sold and delivered by Whole Foods via Amazon. If so, this breakdown is another representation of how Amazon is leveraging online versus in-store shopping data as we explained in our last post. In this case, these shoppers may already be loyal Whole Foods customers but didn’t buy from Whole Foods via Amazon until coronavirus.
However, it's not to say brands that don't sell on Whole Foods won't find these audiences valuable. On the search results pages for these perishable product categories, Whole Foods organic listings win the most prominent placements. There are very few sponsored ad placements available. Because of this, brands can use these audiences to drive shoppers to detail pages or Stores to sidestep the search results.
What’s New for the Clothing and Pet Categories
Besides the growing number of grocery audiences, the clothing and pet categories are now represented. Before, neither had a presence. The pet audiences include both cat and dog food, supplies, and cat litter. These will likely be most useful to challenger brands, category leaders, or a brand launching a new product.
For the clothing and fashion category, the following new-to-category audiences are now available.
- Men’s Contemporary Apparel
- Outdoor Apparel
- Outdoor Shoes
- Women's Athletic Apparel
As of now, the above categories are general, but we expect them to become more refined in time. Before leveraging these audiences, it's worth considering the importance of retail-readiness. We’ve shared how valuable customer reviews, content, and design are to shoppers buying clothing online. So, before using these audiences to refine targeting, it's worth revisiting listings and addressing any necessary updates and optimizations.
When we shared the first blog post about these new audiences, we anticipated they would continue to evolve in the near future. This has proven to be true and has added a layer of efficiency and granularity to our efforts that were previously not possible. We look forward to what’s next and will be sure to share our thoughts along the way.
If you could use the support of a strategic partner, schedule a free consultation. And, as always, we’re here to answer any questions about your brand’s advertising strategy on Amazon and other marketplaces.
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