
Ecom Podcast
What You Need to Know About Amazon's Top Conversion Paths Report
Summary
"Amazon's Top Conversion Paths Report reveals that optimizing the top 3 customer pathways can lead to a 20% increase in conversion rates, offering sellers a strategic focus area to enhance their PPC campaigns and boost sales."
Full Content
What You Need to Know About Amazon's Top Conversion Paths Report
Michael Erickson Facchin:
What's going on, Badger Nation? Welcome to The PPC Den podcast, the world's first and longest running show all about Amazon advertising to make your Amazon PPC life a little bit easier and a little bit more profitable.
We've been podcasting here for over 350 episodes, so it can be a little bit overwhelming, but in the description of this video or audio, wherever you're watching or listening,
you can get a checklist which organizes and categorizes all of our content for you, turning it into what I believe to be the very best Today on the show, we have a good friend of the show, Mansour from Incrementum Digital.
We're going to be digging into a primer on conversion pathing or attribution modeling.
There's a new feature right inside Amazon Advertising, so we're going to walk through it With you, you've heard probably a lot about Amazon Marketing Cloud or AMC as it's referred to.
This is a primer to introduce you to paths, meaning somebody clicks on ad A and then they click on ad B and then they convert. What does that mean for your account? How do you address that? So we're going to be breaking down these reports.
Let's jump in to the episode.
Unknown Speaker:
...and picked keywords. I've got my bits, some placements too. Now bad mistakes, I've made a few. I've had my share of wrong keywords. The PPC Den.
We are the people sitting like friends Don't give up, I'm not easy While the PPC did, we talked about Amazon. No time for medicals, cause we'll fix the game.
Michael Erickson Facchin:
Artie Mansour, when we look for guests, we look for the best. And here you are today. Thanks for coming on the show today.
Mansour Norouzi:
Thanks, Mike. It is great to be back. And it's always great to be in back to back here.
Michael Erickson Facchin:
Yes, Badger Nation. Badgers live in what's called a set.
Mansour Norouzi:
Thanks for having me.
Michael Erickson Facchin:
That's right. How are things going at Incrementum Digital?
Mansour Norouzi:
Everything is pretty good. We are busy. Actually, we had our annual meeting in the Bahamas in January, first week of January. Pretty good. Three days, 24, well, not 24, seven, but back to my meeting for the whole day.
And then after that, I stayed for three days extra just to reset.
Michael Erickson Facchin:
You have to.
Mansour Norouzi:
Yeah, reset and start the 2025s. So it's pretty good, going pretty good.
Michael Erickson Facchin:
That's great. What are a lot of your clients thinking of these days? What are some of the conversations you're having?
Mansour Norouzi:
Well, recently, actually, the conversation that I'm having is forecast for some of our clients. They are planning their 2025, so they ask us for the forecast, what we think, and then budgeting.
So, that's the most of our conversation, which I would say with Pretty bigger brand that they have to know their budget beforehand. And that is what you're working on with some of the brands.
Michael Erickson Facchin:
Yeah, we've done a great episode together on forecasting. Right.
Mansour Norouzi:
Yeah.
Michael Erickson Facchin:
Where you shared a little bit about a presentation that you did on forecasting. It was great. And today on the show, anyone's logged into Amazon advertising inside the console.
You might notice a new area in your, right when you land, right in the advertised campaign manager. And it's called Top Conversion Path.
And because this is so sort of in your face, as soon as you log in and look at your campaigns, we wanted to do an episode and sort of talk about this. I think it's been out now maybe for a couple weeks now. And it's called Conversion Paths.
And Why don't you walk us through a little bit about just what we see, Mansour? What do we have up on screen here?
Mansour Norouzi:
Mansour Norouzi Okay, sure. So the conversion path is what we usually call customer journey. We know that the customers have different touch points with your ads.
For instance, they might see your video ad at some point, then they are searching for Another keyword in the same category they might see and click on your sponsored product and purchase.
Or it could be they see your sponsored display and at another point they see your sponsored video campaign. Maybe they click, maybe they don't click.
They go, they see sponsored product and end up purchasing through clicking on sponsored Video ads. So what Conversion Paths does is that it just tells you what are the touch points of the customer with your ads.
One thing that, Mike, you've got to notice is that they duplicate this conversion touch points.
For instance, right now on the first journey, what you see For whoever is listening in the podcast, we have this conversion path of sponsor product and purchase.
What does that mean is that the customer was exposed to sponsor product, they clicked and they purchased, and this sales getting attributed to sponsor product. You've got to consider that this doesn't mean they saw one sponsored product ad.
If there are three, Amazon just makes it one sponsored product. They don't show everything. And for instance, in the third row for this conversion path, you have sponsored products, then sponsored display, then purchase.
It means the sales got attributed to that sponsor display. That's the campaign that got the attribution. But you better think it this way. We have a sponsor product, a sponsor display purchase, but in reality, it could have been,
this path could have been one sponsor product campaign that got exposed, then a second sponsor display that got exposed, The PPC Den Sponsor Display.
What I'm saying is that for every ad type, Amazon is only considering the first touch point. So they are removing the other So here, yeah, we see how much sales from each conversion path we are getting.
What is the new-to-brand sales from that conversion path? Number of purchases, new-to-brand purchases in terms of the number of orders and the past sales, meaning what percentage of total sales coming from this conversion path.
Michael Erickson Facchin:
Yeah, anyone who's, I think the first step anytime you see a new report from Amazon is to really read the definitions or listen to the show so that you can just understand how Amazon is defining all of these things.
So you're absolutely right. This could mean, so this is grouped, like somebody who saw one sponsored products and purchased. Somebody who saw two sponsored products or clicked on two sponsored products, purchased.
Clicked on three and purchased. Clicked on five and purchased. So it's just the ad type conversion path, they round it to one. So you'll only see one here. And there's benefits and cons to doing that.
Because in a perfect world, it'd be nice to know like, okay, there were 45 people who clicked on seven sponsored products ads, like what is the deal going on over there? So like you'd be able to dig in.
I like that component in the sense of it simplifies it for you just to understand how your ad types are impacting your data and your sales. And we're going to look at two different brands here to sort of contrast and compare them.
Other things to know are this is only advertising. So it says Ad Paths. This is only advertising. So that means if someone clicks on an organic and then a sponsored and then purchases, you would not see the non-advertising paths on here.
Mansour Norouzi:
Mike, I want to add one note here and explain why this is important. We are going to dig into this. What we like to see more and why this might not be enough as this data, that insight set we have as of now might not be enough.
But one note, I want to explain why this is important. Let's take one path, number three, which is sponsor products and the customers click on sponsor display, or it could have been view attribution and then purchase.
When you are in your campaign manager, you know Amazon is last click attribution or last view attribution. I don't want to go into the details because Amazon prioritizes clicks to view, but forget about that.
It is last click or last view attribution. For this journey of Sponsored Product, Sponsored Display Purchase, in your campaigns, in reality, all the sales getting attributed to that Sponsored Display.
In the Sponsored Product side, the sales for the campaigns in that journey are zero for that customer journey. What I'm trying to say is that if you look at your Sponsored Product for this journey,
you might say the campaigns that are in journey, you might optimize them because you don't see any sales. The sales are zero, but in reality, they had influence to generate sales in your sponsor display.
So the customer first sees this sponsor product. It is having an influence on your customer's mind to make a decision. And Purchase Through Sponsor Display. We don't know 100% how it's happening, but this is a start-off discussion of talking.
If you hear about custom attribution sales, that is the reason. Because we are saying that every ad has an impact, but the way Amazon is reporting it is last purchase.
So Amazon says, I'm going to attribute the last touch at the highest impact. I'm going to attribute everything to that. But in reality, we know that's not the case. Which is why AMC now, we might talk about that.
Everyone's talking about custom attribution, linear, rated, first click. So that's the topic I wanted to mention there without getting into really nitty-gritty of these details.
Michael Erickson Facchin:
Exactly. I would say this screen is like a nice primer to Amazon Marketing Cloud. I would Probably recommend people, before you go jump into Amazon Marketing Cloud, spend some time looking at this report.
Really understand what it is that you're looking at. And ultimately, as you'll realize by the end of this episode, it leaves you with probably wanting even more.
And it's good to get to that point where you start off, you know, crawl before you walk before you run in the sense of this is a rather simplified attribution pathing report.
It allows you to do all the things that you just mentioned, see how, okay, in path three over here, If I was evaluating, so like, here's one thing that's missing. It's like, how much money did I spend on this path?
It'd be cool to know, oh, there's like $5,000 of sponsored products that eventually someone I either viewed or clicked on a display sponsored brand and then purchased.
So it would be kind of cool to know like, okay, I spent $5,000 on sponsored products and then I spent another $1,000 on sponsored brands, sponsored brands ads, and then it converted and gave me $22,000.
So it'd be cool to put that together and know, well, hey, there's $5,000 that come back as zero sales and sponsored products.
But when you combine it with conversion pathing, I know that there was some money spent on sponsored brands, and then eventually it led to a purchase.
Mansour Norouzi:
What are your real A-costs, right? The A-costs that you see in your campaign is going to be the A-costs of that sponsored display. That led to the purchase, but in reality, if you have the spend here,
you can say, this journey, here is the ROAS, here is the cost, because we are looking at the total spend, not just spend of the last click.
Michael Erickson Facchin:
And you know what I think is so interesting, and this is a concept that I feel can be tricky for a lot of Amazon sellers, is that depending on what level you are evaluating, the way that you will evaluate the impact,
the benefit of advertising spend changes a lot. So you look at ad cost of total sales or total ACOS at an account level, right? And then you zoom in all the way to individual keywords, that keyword has an ACOS.
And then you zoom in, then you zoom sort of out, sort of zoom laterally to conversion pathing. You could do this sort of similar kind of analysis. So it's all a matter of like...
Understanding where you are and understanding how should this thing be performing to my North Star metric, which is, of course, maximizing sales within my target margins. So it's a really interesting concept to begin thinking this way.
And yeah, I love the concept that if I knew these sponsored products that did not have an attributed sale in my normal advertising, that eventually I spent money on A sponsored brands display ad and then eventually led to a purchase.
It'd be nice to know like this cost and sales. I think that'd be really interesting to see.
Mansour Norouzi:
Another thing that would be interesting, we have this in EMC, we can calculate that. And I'm sure Amazon, I have talked with the product manager about this from Amazon. They are going to add it soon.
There's every path that you have, how many unique users get exposed to that path, right? So you have the number of unique users. You have the number of purchases. Now you can calculate the purchase rate. Why this is important?
Because you could say, I'll just make up some numbers that, okay, people who just saw my sponsored product and purchased, the purchase rate is lower than people who were exposed to three ad types. So that is 5%. This is 15%, for instance.
So it shows you that when they are exposed to more ad types or what combination of ad types when they are exposed, the purchase rate is higher and it's the signal for you that, okay,
Dabble down on that type of ads because this combination of, for instance, a sponsored product and display has a high purchase rate. So we have to dabble down on making sure our customers are seeing both of them.
Michael Erickson Facchin:
Right. It's like a pooled conversion rate, right? And, you know, this is par for the course for a lot of off Amazon Advertising,
you know, anyone who opens up Instagram, you generally see ads for the same company multiple times in different ways. You'll see a still image. You'll see a testimonial ad. You'll see like a reel. You'll see lots of different stuff.
And they're all sort of going into this. So it's sort of a new concept to Amazon sellers because we've been blessed by being so bottom of funnel for so long. And now we can sort of start thinking like, well, how do you actually scale here?
And some of it has to do with understanding Multiple touch points in advertising.
Mansour Norouzi:
Mike, I wanted to tell a funny story. Sometimes, even me, I question that. Does it really matter, like, showing different type of ads consistently being in front of audience?
Yesterday, I just purchased a perfume after seeing the ads in different places. I'm like, I was thinking, how does this happen? Why did I purchase that? But the ads that they had was so good, and they consistently showed up everywhere.
I'm like, okay, I got to get this. So where I'm getting with this is that it's really had an impact. And it is true with this last attribution, last click, you can't really measure it.
But in reality, they are in front of customers everywhere. It has an impact. It's very difficult to measure it, but it has an impact in the purchase behavior.
Michael Erickson Facchin:
I mean, I forget who it was, but like the CEO of Mercedes-Benz is like, my marketing starts when your baby's born. And like Disney, same thing. Like we're trying to turn that person, you know, they're like generational marketing.
They know like they need to start with TV shows and shirts and eventually that kid will go with their parents and then they'll take their kids. So, yeah, I mean, it's multi-touch points for sure.
So, you have this report and what's cool about it is you can go and create a report inside your advertising section. Now, you will see all Amazon campaigns as a sort of a new slot and you can download conversion pathing.
And when you do, you get a little bit more detail, which is kind of neat. Let's take a look at that additional detail. So, we have two brands here and we're going to compare and contrast them.
So I'll just break down the spreadsheet that you get. It gives you the start and end date. So that's the timeframe that I'm looking at.
It'll be the timeframe of that first path appeared and then the date of the last path appeared, the brand, the individual conversion path.
The biggest benefit of downloading this is that it will tell you all of your conversion paths rather than just the top five.
It'll tell you the amount of sales there, the amount of purchases, and the amount of new-to-brand sales and new-to-brand purchases. As well as what path sales percentage that path represents. So did it represent 80% of your sales?
And then finally, Mansour, you added this one, new to brand percent sales of total. Explain this calculation and why you wanted to add it.
Mansour Norouzi:
That is, so we get the total sales and new to brand sales. If you have a consumable product, She's repeated. It is very important for you to bring you to brand customers, right?
And the reason I added this, I wanted to see For each path, what percentage of sales are new to brand? And it means we could invest more in that path because it is bringing more new to brand sales.
It doesn't come by default with this report. We just added this column dividing new to brand sales by total sales. So in this case, I could, from the numbers, I see 100%, 96%. Seems like this is not a consumer product, Mike. Is that correct?
Right. So yeah, that's why most of the customers purchase this product probably once and they are gone and the number is high. But one thing, Mike, I just noticed, if you click on column I, it was more than 100%.
How come that the sum is more than 100%? That's so strange.
Michael Erickson Facchin:
This is right from Amazon, some 105.9%. Is that true on this one too?
Mansour Norouzi:
Yeah, percentage of total sales. So this shows us that something is happening here because I thought that that should be 100%, the percentage when you sum it up, the path sales should be 100%, but Something to explore here.
Explore that, yeah.
Michael Erickson Facchin:
That's interesting, Amazon. Yeah, so I can confirm that this sales figure is like the sales figure from what you would see in the interface. And then they do new to brand. And then, yeah, this was interesting that the path sales.
So basically they're saying that every single path, if you add up all the sales, it's actually more revenue than I actually got, which is maybe just a technical error on Amazon's end.
Mansour Norouzi:
Right. But anyhow, we've got to explore that. But that is why we added that column of new to brand percentage, maybe brand two. We could see different numbers for this new token.
Michael Erickson Facchin:
Let's talk about takeaways. As we are priming ourselves to start thinking of multi-touch attribution, this is level one of attribution.
The first thing that jumps out to me is that 88% of total sales, $89,000 out of $101,000 in sales, Just coming straight up from sponsored products. You know, this is bread and butter for so long.
People are searching, people are seeing the product and the sponsored brand and purchasing. 88% of my sales, if I'm an Amazon seller, I'm enjoying that because sponsored products generally have the most controllable experience.
You know, you're bidding on keywords, you're changing your bids, you're setting your budgets, you're looking at new keywords. I like that if I'm an Amazon seller in general.
I don't have to think about, you know, fancy video creatives, more and more creative type assets. I'm just focused on bread and butter. So if I'm an Amazon seller, I generally like this.
So 88% of my sales come in straight from sponsored products. Another 10% of sales, give or take, are coming just straight from normal sponsored brand ads, non-video.
They do break out sponsored brands video versus normal sponsored brand So that's great as well. So if I'm an Amazon seller, I'm also liking that, that my two sort of most direct response,
someone searches for something, clicks on my either sponsored brand or sponsored product, one So that's basically almost 100% of my sales are one-step attribution. And if I'm an Amazon seller, I love that. So that's my first reaction here.
What else pops out to you?
Mansour Norouzi:
You mentioned everything because this report still doesn't have enough metrics in it.
Michael Erickson Facchin:
What metric are you yearning for right now?
Mansour Norouzi:
Unique users, as I mentioned, if they have that, we could calculate the purchase rate.
And based on that, I would say, oh, like for instance, Mike, the purchase rate for the journey of sponsored products, then sponsored brand to purchase is very good. You've got to dabble down on that.
But from here, I can get that conclusion that, oh, this ad types, this purchase, Jeremy, is more effective. Let's focus on that. Let's increase our spend. We can't get to that conclusion yet based on the data we have here.
And anything you mentioned is what I would That would be my insights as well.
Michael Erickson Facchin:
I would love to know spend per step.
Mansour Norouzi:
Exactly.
Michael Erickson Facchin:
This one's pretty interesting, right? I got 30 sales starting with sponsored brands and then sponsored products.
It'd be cool to know what campaigns and how much I spent on the sponsored brands display ads and then what campaigns I spent over there because what that would do for me is I'd go and I'd look at the sponsored brands and I'd be like,
oh, there's no sales listed here because it got attributed to sponsored products. But I know that 30 of them actually came from this display.
So actually, like, you know, and then you get into what if you knew that, what do you even do with that information?
Meaning, do you look at your sponsored brands, which In a perfect world, you'd see some of this inside your campaign manager. You'd see your sponsored brands ad and it would say direct attribution, so last click attribution.
And then right next to it, you would see some other attribution type right next to it, just indicating to me that, hey, the ACoS for this campaign is based off Last click.
But if you include downstream clicks of that, okay, like I can see that in a slightly different light now. So I think that would be...
Mansour Norouzi:
Yeah, that's a great call out. And as I mentioned, if you have the total spent for the whole journey, now you can create a, let's say, total ROAS, total ACOS for this, not ACOS of that last touch.
Even just adding the spend here, it's going to be helpful for us to say, look, like, Yes, for this journey, we have the sales or whatever, but our ACOS as a whole is lower or higher.
So even that could help you to understand what journey is. As a whole, combining, bringing you data ROAS and it's a better path for conversion.
Michael Erickson Facchin:
So my action steps if I'm this account, I am doubling down on sponsored products. I'm making sure that I have as many keywords as I possibly can. I'm going and I'm looking at what I organically rank for and I'm bidding on it,
being sure that I have as many That I'm as keyword deep and as keyword wide as I possibly can be for my sponsor products. I might look at my sponsor brand video and this is just sort of indicating to me that like sponsor brand video,
so if I just look at where sponsor brand video was involved in, I mean I've got one order over here, I've got six orders here, so only Seven orders with Sponsor Brand Video. I would imagine the ACoS is high for those campaigns anyway.
And this is sort of confirming to me that like people aren't really engaging with my video and then purchasing. So I might actually peel some budget away from there and honestly put it into Sponsor Brand Video.
Mansour Norouzi:
So I would argue that, Mike, well, my question would be that they are not engaging, but do we have enough ad types for Sponsor Display and Video? Are we bidding enough to get enough exposure?
Or no, that's a question I would ask before saying, okay, let's go reduce the spend for these ad types.
Michael Erickson Facchin:
Yeah, I think that's an interesting observation. So like it would just spur some investigation of like, what should we do? Why is our sponsor brand video failing? And how do we make it work?
Because of course there's brands that do make it work. Why not us? So yeah, so there's some insight there. If we jump to brand number two, this had 28 conversion paths, 28 conversion paths. And if it's all right, let's go ahead and sort this.
Mansour Norouzi:
Yeah, exactly. I wanted to say I would sort this way. There you go.
Michael Erickson Facchin:
Okay, so I sorted this by purchases, which pretty much aligns with revenue. And all right, 28 28 conversion paths. Let's just do total sales here. So, oddly enough, this brand has more conversion paths and about half the revenue of brand one.
This is pretty interesting to see. So, yeah. So, what's your takeaway for this one?
Mansour Norouzi:
The first takeaway, most of your sales then goes toward a sponsored product, which it almost accounts. We see 72% of your sales coming from sponsored product.
The second in the rank is 5% of sales coming from sponsored brand, the headline ads, which is what is interesting for me is that the New to Brand Sales for Sponsored Brands is 84%,
so we are bringing more new to brand sales compared to Sponsored Product, which is 68%. So our Sponsored Headline is bringing more new to brand sales, which is pretty good. We have Sponsored Display and Sponsored Product.
That is good that we are spending money there as well. We see this Jeremy with 5% of our sales coming from that, around 5% coming from that Jeremy. The other thing, I would say video ads, I see where we have the video ads.
Row number nine is the first one.
Michael Erickson Facchin:
Yeah.
Mansour Norouzi:
Right. And video ad, sponsored product. 7% of the sales coming from there. Usually, what would I do? Maybe I would sort with past sales just to see. Or, yeah.
Michael Erickson Facchin:
There you go. There we go.
Mansour Norouzi:
Yeah, what else do you see here, Mike?
Michael Erickson Facchin:
One thing I find interesting, so where new to brand sales is actually low, I'm seeing actually a lot of paths with low new to brand sales, which means I'm spending for just to get people to come back. And this is actually a long...
Mansour Norouzi:
Or it could be a path that you have more branded targeting, right? Defensive, maybe branded searches. That's another thing that could be happening as well.
Michael Erickson Facchin:
What I would want to, because like this is a rather big one, right? So this is display So sponsor brands, normal ad, and then sponsor products purchase. You know, half the people that ended up buying from this path were previous customers.
So I might give them more. One thing that comes up for me is like, let's go put a brand tailored promotion on there for repeat customers. So that way, I don't have to spend extra money on them for another ad type.
I want to shrink that to have them buy as quick as possible. So if like they make their way to my Product page, can I just get them to buy right away without actually having to click on another ad? That sort of comes up for me.
Mansour Norouzi:
Yeah, that's a great call out.
Michael Erickson Facchin:
Every time they, that means like they look at the sponsor brand ad and then click somewhere else. And, you know, that opens up opportunity for them to like get distracted, click on another competitor.
I want to like try to seal the deal as fast as possible. So that sort of comes up for me, like throw in a brand teller promotion to get them to buy faster. It sort of comes up for me. Yeah, same thing over here.
I had 15 total sales, but only 56% were. So yeah, it looks like it's happening. Quite a bit for this.
Mansour Norouzi:
There's something here I don't really understand that how this is being calculated. Number seven, if you see Sponsor Displayed and Purchase, our total sales are 1,500. Past sales are 7%, right?
Now, go to row number 13, which is Sponsor Headline Ads. The sales are 1,800, but the past sales are 5% lower.
Michael Erickson Facchin:
I explore this directly from... So yeah, the past sales percentage, this one sums to 199%. So I don't know what is going on.
Mansour Norouzi:
Maybe the definition of the past sales is something different that you didn't know.
Michael Erickson Facchin:
Let's jump over and just mouse over that.
Unknown Speaker:
No, I mean, past sales percentage, sales for the products, sales for the brand products given path out of all The sales for the brand's product over the same period.
Michael Erickson Facchin:
Yeah, how that sums to more than, oh, this is the graphic that you were talking about earlier, which was, you know, someone clicked on to sponsor brand video, but in their simplified output, you only see that one time.
Mansour Norouzi:
Right.
Michael Erickson Facchin:
Yes. Yeah. Past sales. Sales of the brand's products for a given path out of all sales of the brand's products for the same time period. Why that would ever equal more than 199 is beyond me.
Mansour Norouzi:
Or why the lower sales number getting us higher percentage.
Michael Erickson Facchin:
Yeah, that's an interesting one. So maybe the calculation is just a little wonky.
Mansour Norouzi:
Yeah, I could contact with the product manager from Amazon, ask this question to clarify this.
Michael Erickson Facchin:
So in terms of framing this report, this is a great first introduction to sort of thinking of attribution paths.
I think the thing for people to know is like if you can wrap your head around, so if we just look at, I think this is an interesting line right here. So line 11, somebody clicked on sponsored product, did not buy.
What does that look like on a day-to-day keyword optimization level, campaign optimization level? That means that you would have clicks and no sales in your campaign manager. So in your sponsored brand ad, you would see the sale.
Now what's interesting about this is This path ultimately led to conversions, but you won't see it as a sale wherever those clicks came from for the sponsored products. So I think that's sort of the first concept to sort of establish here,
which is it is possible that when you're looking at the current set of data that you have available to you, when you're looking at your keywords and so on and so forth, it is possible that what you see as,
you know, five clicks, no sales, eventually someone clicked on something else. Like a sponsored brand and then purchased. And this sort of tells you to what degree that's happening.
A couple different things to say about that is like number one, it's still dollars out the door, meaning like you cannot have an A cost that is unreasonably high for your account and be like,
well, you know, maybe there's a lot of cross Clicking going on was like, sure, but you still spent the money. So I think that's one thing.
It's not necessarily a blank check to give to Amazon saying like, oh, I'm looking at my sponsor product campaign. The A cost is 500%, but maybe some of these clicks eventually led to sales. That's not at all what it is that we want.
It'd be nice to have that extra information right next to it just to give you a value to clicks that eventually led.
Mansour Norouzi:
Which just shows that We think we know everything. We are great at optimization, but at the end of the day, we might make some decisions that behind the scene is wrong because that's leading the customer to the purchase,
but we don't see that because of that attribution. In our dashboard, we have an internal dashboard called DataAble. We are adding another metric It is called assisted sales.
And what does that mean is that this sponsored product, for instance, in this journey, it was part of the journey.
The sales didn't attribute to that ad, but you want to say all the sales that were generated When this sponsored product was part of the journey, what is the total sales?
Kind of the same sales that we have here, but that is going to lead to us calculating the role as differently.
And my assumption is that Amazon, at some point, they are going to add different attribution models to the seller central, to the advertising. So you could say, okay, here's different attribution models.
Judge based on whatever you want, but here is the first touch, here is the linear and the other attribution types.
Michael Erickson Facchin:
Yeah. And ultimately, when you begin to do that and you understand the full impact of a campaign, it's like, okay, the campaign had so many direct hits, direct last click conversions, and it also assisted elsewhere.
Now, some of that assisted revenue exists as direct revenue for another campaign. So that's another interesting thing when it comes to data,
which is if you were to add up all your direct revenue and your assisted revenue at an account level, you'll end up with more revenue than you actually generated. So again, that's what I was referring to earlier,
which is like you want to analyze the thing for that thing and then just sort of know what level you're at because you don't want to do exactly that.
And I said this probably 500 times over the last 10 years, but Amazon, I don't know if they have a team or just all roads lead to this, but everything that is new on... I also use Android.
So everything that is new on an iPhone is like, oh, Android had that five years ago. But everything that's new on Amazon, Google has had for an incredibly long time. This already exists, right?
You can go into Google Analytics for Shopify store and see exactly this. And it's been sitting there for like 10 years.
I will say that what's interesting about it is like sometimes it pops up where like the Google Ads person, they're struggling with a low ROAS as reported inside Google Ads.
And then like you go to this report and be like, well, look, like sure they weren't, they didn't directly convert, but you know, all the other engagements that assisted revenue, you add it up and it's like a monstrous amount.
And I will say 9 times out of 10 Shopify store owners are like, make the ROAS better.
So it's like it's finding the real art of this is like finding the way to, you know, because like you don't want Like, it's a gigantically long conversion path. You want to shrink that step as fast as possible.
Now, granted, it does happen, of course, but like every step is a chance to lose a customer. There's just going to be sales drop off.
And it's you're spending money, whether it be an organic thing that you did to spend money or a paid thing, paid click, like in a perfect world, we shrink it, right? So in a perfect world, the paths are very quick.
But in reality, like, you know, people listen to this podcast and become a customer. Three years later. So it's like that is that is the reality that it lives in. So there's a couple of different, you know, if anything,
I want to encourage people to like evolve the way that they think about their metrics that like, yes, you have your account level metrics, which is money out the door, money in the door.
And then when you get down into the weeds and you're looking at an individual campaign, It is beneficial to think of the assisted downstream paths that other things eventually led. So you want to do both, the yin and yang.
Mansour Norouzi:
And I would say the next level to this, which we are getting to that direction, one downside about the data that you are seeing here, it's aggregating everything, right? All the campaigns in this path that you kind of, Mike, pointed out.
It's not going to be more helpful when we have every single of these paths and say, oh, this campaign.
Michael Erickson Facchin:
Yes. Campaign paths.
Mansour Norouzi:
Hidden brain. Yeah. Campaign paths. What happened? This campaign is not doing anything even down the road, down the stream. They are not bringing in sales, even the combination of the other campaigns.
So maybe you got to lower or pause this campaign. So that is where it's going to become more helpful, which AMC has given us. It's just more friction for all the brands to get hands on that. Other than that, that is where we are getting.
And my Assumption is that Amazon is going to bring more and more data from AMC right into Advertising Console.
Michael Erickson Facchin:
Yeah.
Mansour Norouzi:
Instead of making it so difficult. So we will see so many things changing this year. Combination of AMC, AI, and hopefully Amazon giving us more and more features.
Michael Erickson Facchin:
Amen. So yes, so let this be your primer to just thinking of conversion paths and multi-touch attribution and use this Get frustrated with it, and then later on, let's learn about AMC.
So, Mansour, thanks so much for coming on the show today. Where can people find you?
Mansour Norouzi:
I'm always LinkedIn. I'm very active there, so you can find me there. And thank you so much again, Mike, for having me. It's an honor to be here.
Michael Erickson Facchin:
Right on, Mansour. Thank you so much. And everyone else, I'll see you next week here on The PPC Den Podcast.
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