Case Study
Amazon Ads bid modifiers API helps Profitero lift Coty’s return on advertising spend by 28%
Goals
- Expand market footprint of leading beauty brand
- Identify and reduce advertising spending inefficiencies
- Gather retail intelligence from multiple sources to optimize advertising approach
Approach
- Integrate Profitero’s Shelf Intelligent Media solution with Amazon Ads bid modifiers API, available for Amazon DSP through the Amazon Ads API
- Build a custom algorithm for leading beauty brand Coty to offer combined intelligence
Results
- 28% increase in overall return on advertising spend (ROAS)
- 36% increase in new-to-brand (NTB) ROAS
- 8% increase in overall NTB sales
- 45% higher total digital purchase view rate (DPVR)
There’s beauty in insights.
Profitero, part of Publicis Media, is the industry-leading digital shelf provider for brands worldwide; their end-to-end systems connect insights and action to help accelerate commerce growth. Their Shelf Intelligent Media solution helps improve retail media return on investment (ROI) by turning digital shelf analytics into automated optimizations. Profitero partnered with Zenith, an ROI-based agency within Publicis Media, supporting Coty, a leading beauty brand with over 50 iconic cosmetic, skincare, and fragrance brands.
Seeking technological support to stand out in a saturated market
Coty wanted to use Amazon Ads, specifically campaigns on Amazon DSP, to help expand their brands’ market footprint, while at the same time increasing advertising spend efficiency. Coty operates in the challenging and saturated beauty market. To help overcome these challenges, Coty required consistent access to a variety of metrics, like competitive pricing and inventory status to help optimize their campaigns. To devise a custom technological solution and drive implementation, Coty leaned on Profitero and Zenith.
A custom solution to drive bid optimization
To solve these unique challenges, the teams began building a custom algorithm for Coty that combined Profitero’s digital shelf signals with intelligence from Amazon DSP, an improvement to relying on information gathered from separate and siloed informational sources. The technology was built using the Amazon DSP bid modifiers API, available from the Amazon Ads API. Profitero and Amazon Ads partnered to connect the bid modifiers API into Profitero’s Shelf Intelligent Media solution, including a proprietary bidding algorithm. The custom algorithm leverages Profitero’s digital shelf signals (including Coty’s inventory status and price, and competitors’ status and price), alongside Amazon-specific signals. With this technology, automatic bid adjustments can be made down to the zip code, thousands of times daily.
Strengthened impact, in a matter of weeks
Three weeks after implementing Amazon DSP bid modifiers, Coty saw an 8% increase in their overall NTB sales and a 36% increase in their NTB return on advertising spend (ROAS). Overall, ROAS increased by 28%, providing Coty their desired incremental sales growth. Additionally, Coty recognized a 45% increase in total DPVR which indicates higher engagement and interest in the products advertised, leading to an increase of 15% in total digital purchase views.1
Shelf Intelligent Media gives us an exciting opportunity to leverage in-market signals to optimize retail media. Activations have ranged from the simplicity of pausing media when our brand products are out of stock, to complex bidding strategies based on competitor product information at the ASIN level. With the recent addition of DSP, this allows for an added layer of sophistication and efficiency.
- Peter Vasilakos, Vice President, Commerce, Zenith
1 Zenith, US, Control period 4/6/2024 – 4/28/2024, Test period 4/29/2024 – 5/20/2024