New AI Model Measures and Predicts Halo Effects of Ad Campaigns On and Off the Amazon Platform
MIAMI, May 7, 2024 /PRNewswire/ — Omnichannel brands using Prescient AI to maximize revenue generated by paid media can now measure Amazon performance alongside the rest of their sales and marketing channels. Merchants can connect Amazon to the Prescient AI platform in minutes to reveal how advertising campaigns, both on and off the Amazon platform, contribute to sales in the Amazon marketplace.
Just 30 days after Catalina Crunch connected Prescient AI to Amazon, customer acquisition costs were down by 24%.Post this
Within 30 days of implementing Prescient AI and connecting to its Amazon store, Catalina Crunch validated that 15% of Amazon gross sales were driven by non-Amazon based paid media campaigns, known as “halo effects,” then made adjustments that decreased customer acquisition cost (CAC) by 24% across its Shopify DTC store and Amazon.
“There was never a good solution for marketing mix modeling (MMM) before Prescient. I built my own internal model based on multipliers, last-click conversion data, massive datasets from Amazon, and post-purchase surveys, but that was incredibly time-consuming,” said Nick Osborn, Head of Growth at Catalina Crunch. “Using Prescient, I can model out any spend. If I want more incremental ROAS for next month, the platform tells me where I should adjust my budget, spend, channels, campaigns — you name it. Prescient makes the whole process so easy.”
While adding Amazon is typically the first step growing direct-to-consumer (DTC) brands take as they expand into omnichannel sales, Amazon reporting is notoriously difficult to incorporate into a unified view of marketing performance. Marketers have to rely on what Amazon reports on its own performance and they’ve never been able to connect Amazon sales to media spend elsewhere – despite knowing that ad campaigns on other channels have an impact on Amazon revenue.
“Understanding how media campaigns contribute revenue to every sales channel, including online marketplaces like Amazon, is so critical for spend optimization that many people who aren’t facing the problem are surprised to learn that it still exists,” said Jimmy Marsanico, Vice President of Product at Prescient AI. “We consistently heard from customers and prospects that solving the Amazon disconnect would be a game changer for them, so we prioritized developing a new model to make that happen.”
Prescient AI accurately determines both the direct impact of ads that users engage with, as well as the halo effects of all the ads consumers see, but don’t click on. The Prescient AI platform is powered by proprietary marketing mix models that are specifically tailored for each individual brand to attribute all of the omnichannel revenue from across their media mix. Through rigorous backtesting techniques, the advanced machine learning models forecast the outcome of future spend, then the platform provides daily updates with campaign-level recommendations to optimize spend allocation.
By connecting their Amazon Seller Central and Amazon Ads accounts to the Prescient AI platform, brands can:
- Get unbiased performance measurement of Amazon Ad campaigns and how they contribute to overall sales.
- Optimize ad spend both on and off the Amazon platform, with a clear understanding of how paid media campaigns on other channels, such as Meta, Google, TikTok and CTV, impact Amazon revenue.
- Monitor Amazon performance alongside other channels and gain efficiency by centralizing all performance metrics in one place.
- Connect to the Prescient AI platform and dive immediately into past performance to assess paid media strategies – no pixel required.
“As we shopped for MMM solutions, we weighed cost and scalability. We’ve got a nimble team and need to be efficient. That’s why Prescient turned out to be the perfect fit,” said James Harbison, Incrementality Attribution Manager at Timbuk2. “It’s the gut check that lets us know if the sky is falling or if we can proceed as normal. The insights we get from Prescient AI allow us to feel confident about the decisions we are making.”
Learn more about Prescient AI or set up a free demo at www.prescient-ai.io
About Prescient AI
Prescient AI provides media measurement and budget optimization solutions that enable omnichannel ecommerce brands to predict profitability and maximize revenue generated by advertising campaigns. Powered by proprietary machine learning models, the Prescient platform accurately attributes revenue across the entire media mix and provides daily updates and campaign-level recommendations to improve return on ad spend (ROAS) and lower customer acquisition costs. Unlike media attribution and marketing mix modeling (MMM) of the past, Prescient AI measures media halo effects to determine how campaigns indirectly impact sales and its accuracy is not affected by data-privacy restrictions or changes in the business environment. Prescient AI can connect to channels in minutes, including Shopify, Amazon, Meta, Google, Snap, TikTok, CTV, and more. Within days, the platform delivers usable insights about how much revenue each channel and campaign contributes through direct-to-consumer owned sites and the Amazon marketplace. Brands like GOOD AMERICAN, HexClad, Cozy Earth and Nood using the Prescient platform have seen an average increase in ROAS of 20%. Visit www.prescient-ai.io for more information.
SOURCE Prescient AI