Few advertisers noticed or understood its potential when Amazon quietly launched its Marketing Cloud (AMC) in late 2019. Today, this powerful analytics platform has emerged as a crucial tool for understanding customer behavior, pulling in advertiser-provided 1st party data, creating custom audiences, and optimizing advertising strategies on Amazon. With extensive first-party consumer data, Amazon has created a secure environment where advertisers can gain unprecedented insights into what is going on with their advertising efforts.
Understanding AMC: The Privacy-First Analytics Platform
At its core, AMC is a secure, cloud-based environment that Amazon calls a “data clean room.” This platform allows advertisers to analyze customer behavior across multiple touchpoints without accessing personally identifiable information. The system uses pseudonymization, a sophisticated technique that replaces identifying information while still allowing detailed analysis at an individual level. This strikes a balance between insight and privacy, which has made AMC increasingly valuable to advertisers seeking a deeper understanding of their customers’ journeys. It is not possible to write certain kinds of data queries in AMC, as these privacy safeguards are in place.
Tracking the Customer Journey: A New Level of Insight
Consider a typical customer journey on Amazon: A shopper might first encounter your product through a display ad while reading news online, then see a video ad a few days later, and finally make a purchase after clicking on a sponsored product ad. Before AMC, advertisers could only see the final click that led to the sale. Now, they can track the entire journey and understand how each advertising touchpoint contributed to the conversion. This multitouch attribution capability has revolutionized how brands understand their advertising impact on Amazon, and subsequently where and how they might allocate ad spend
Advanced Audience Targeting: Reaching the Unreachable
One of AMC’s most powerful features is its ability to create highly targeted audiences. Advertisers can now build audiences based on keyword searches, even if shoppers haven’t clicked on their ads. Advertisers can also create a custom audience of individuals who added items to their shopping cart but did not complete the purchase. This allows brands to retarget these potential customers with tailored ads, possibly offering incentives like discounts or reminders about the items left in their cart, thereby encouraging them to finalize their purchase. This means you can reach potential customers who have shown interest in products like yours, but haven’t yet engaged with your brand. With click-through rates typically hovering around 2-3% at best on Amazon, this capability to target the other 97-98% of searchers represents a massive opportunity for advertisers.
Who Benefits Most from AMC?
While initially limited to Amazon DSP users, AMC is now becoming available to more advertisers, particularly private label brands and sellers using multiple advertising channels on Amazon. Access can be gained through an Amazon Advertising account executive or various third-party service providers who can help navigate the platform’s SQL-based interface.
Data Collection and Analysis: A Comprehensive View
What sets AMC apart is its extensive data collection and analysis capabilities. Advertisers can examine 13 months of historical data, helping them understand patterns like which products customers typically buy first from their brand, or how different advertising touchpoints work together to drive conversions. The platform also allows advertisers to upload their first-party data, creating a rich environment for comprehensive analysis.
Technical Challenges of Using AMC
AMC presents several technical challenges that can put roadblocks in the way you use it effectively. Here are the key challenges
- SQL Proficiency Requirement
Effective use of AMC necessitates a strong understanding of SQL. Non-technical users may find it difficult to navigate the syntax and perform necessary queries, limiting their ability to use AMC to its full potential. This means you either need someone on your team who is SQL savvy, or work with an agency or tool provider who can help in this area.
- Data Gaps and Attribution Issues
There are inherent data gaps, particularly when querying recent data. For instance, there can be a 24 to 48-hour delay in data availability, which complicates real-time decision-making. Additionally, discrepancies in user ID tracking due to null values can lead to inaccurate reporting and attribution challenges.
- Aggregation Thresholds
AMC enforces aggregation thresholds to protect user privacy, requiring a minimum of 100 unique users for data outputs. This limitation can restrict the granularity of insights available to advertisers and complicate analysis efforts.
The Future of Digital Advertising
Looking toward the future, AMC’s importance will likely grow as the digital advertising world moves toward a cookieless environment. Amazon’s vast first-party data and AMC’s analytical capabilities offer a robust solution for advertisers concerned about tracking and attribution in this new landscape. The platform continues to evolve, with new features being added regularly. For instance, Amazon recently announced the ability to link AWS instances with AMC, opening up even more possibilities for data analysis.
Understanding the Limitations
However, it’s important to understand AMC’s limitations. The platform isn’t real-time, and some features have restrictions – like when you push audiences to Sponsored Ads the bid adjustments can only increase, not decrease. While AMC provides powerful insights, it requires either SQL knowledge or partnership with someone with the technical expertise to fully utilize its capabilities. The data provided is always aggregated to protect consumer privacy, and you can’t see individual customer information or competitor data.
Conclusion: The Future of Amazon Advertising
For sellers serious about scaling their Amazon presence, AMC represents more than just another analytics tool – it’s becoming an essential part of the e-commerce toolkit. Whether you’re looking to understand your customer journey better or create more targeted advertising campaigns, AMC offers insights that were previously impossible to obtain. As we move into 2025 and beyond, understanding and utilizing AMC could be the key to maintaining a competitive edge in the increasingly sophisticated world of Amazon advertising.
AMZ Pathfinder is a solutions provider for e-commerce businesses selling on Amazon. They help businesses achieve Amazon success and offer top-notch services to make your catalog stand out in the crowded marketplace including:
- Sponsored Products Advertising
- Amazon DSP
- Full Account Management
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- Google Ads or TikTok advertising to channel qualified paid traffic to Amazon
Interested in Receiving Expert Advice? Book a call with a member of AMZ Pathfinder’s expert team: Contact Us – AMZ Pathfinder.
