Method 1️⃣ - Refined Targeting with SP PAT and SD
Targeting high Average Order Value (AOV) products tends to generate better results when aiming for items within a similar price bracket. Through SP PAT campaigns, you have the ability to display your ads on PDPs or within search results next to ASINs priced similarly to your product. This precise targeting allows your advertisement to appear alongside products in a comparable price range, maximizing the chances of attracting customers interested in that price bracket.
Moreover, employing the SD Brand Defence segment offers a similar level of specificity. This method enables you to target particular ASINs directly, showcasing your ads on other Product Detail Pages that feature high AOV items. By strategically placing your ad on these pages, you can reach potential customers who are already interested in products within the same price range, potentially increasing the visibility and desirability of your product among this audience.
Method 2️⃣ - DSP (if it’s a well-recognized brand)
The data reveals that despite assumptions, the primary consumers of luxury goods aren't necessarily those with household incomes of $150K or more. In fact, 84% of luxury shoppers actually have incomes below $150K, and among them, over half are high-volume luxury buyers, purchasing at least five luxury fashion items annually. These consumers also tend to buy luxury gifts closer to holidays or events.
However, both income groups, <$150K and $150K+, share similarities in reasons for luxury purchases, such as self-reward or treating oneself. An interesting trend is that both groups heavily engage with streaming TV, with <$150K earners being more likely to discover new luxury brands through this medium.
Amazon DSP provides a robust avenue for advertising luxury goods due to its advanced targeting capabilities and access to diverse ad inventory across multiple channels. Here's how luxury brands can leverage DSPs for effective advertising:
Targeting Affluent Audiences: DSPs allow precise audience targeting based on various parameters like income, interests, demographics, and behaviours. Luxury brands can specifically target individuals with higher income brackets, ensuring their ads reach the right audience likely to afford their products.
Contextual and Behavioral Targeting: DSPs enable targeting based on user behaviour and interests. For luxury brands, this means identifying users who engage with high-end content, luxury publications, or premium lifestyle websites, ensuring ads are placed in relevant contexts.
Programmatic Buying for Efficiency: DSPs facilitate programmatic buying, enabling real-time bidding for ad placements. This allows luxury brands to optimize their campaigns by adjusting bids and targeting parameters based on performance data, ensuring efficient use of advertising budgets.
Multi-Channel Approach: DSPs provide access to various channels such as display, mobile, video, social media, and native advertising. Luxury brands can create cohesive, multi-channel campaigns to reach their audience across different platforms, reinforcing brand presence and messaging.
Measurement and Optimization: DSPs offer robust analytics and reporting tools to track campaign performance in real-time. Brands can analyze metrics like click-through rates, conversions, and engagement to optimize campaigns continuously for better results.
Retargeting Strategies: DSPs allow for effective retargeting efforts, reminding potential customers who have shown interest in luxury goods through previous interactions but haven't made a purchase yet.
Utilizing DSPs effectively requires a deep understanding of the target audience, creative strategies that resonate with affluent consumers, and continual optimization based on data insights. By leveraging the precision and flexibility offered by DSPs, luxury brands can craft compelling campaigns that effectively engage their affluent audience across various digital channels. Please reach out to your Programmatic Strategist for more information.
Article last updated December 2023. If you find this information to be out of date, please contact email@example.com.