Amazon has unveiled a new Optimal Frequency Analysis playbook for its Amazon Marketing Cloud (AMC) platform, aiming to help advertisers optimize their ad frequency and improve campaign performance.

The playbook offers a data-driven approach to determine the ideal number of times an ad should be shown to a user within a given period. By leveraging AMC's capabilities, advertisers can now identify the sweet spot between under-exposure and ad fatigue, potentially increasing their return on ad spend (ROAS). Key Objectives of the playbook include:

• Optimize Frequency Analysis: Measure and attribute conversions to ad frequency.
• Holistic Business Value: Assess the impact of increasing or decreasing ad frequency.
• Avoid Ad-Fatigue: Prevent overexposure and underexposure to optimize ad spend.

Playbook Summary

The comprehensive playbook guides users through several key steps:

1. Determining and Setting Frequency Caps:

   • Utilizes cumulative cost and return KPI relationships
   • Introduces metrics like cumulative cost percentage and cumulative return percentage
   • Helps identify the point where additional frequency becomes less effective

2. Identifying Under-Served Audiences:

   • Uses advanced statistical methods to find audiences that would benefit from increased ad exposure
   • Employs Python-based analysis to plot frequency curves and identify optimal points

3. Activating Under-Served Audiences:

   • Provides SQL queries to create targetable audience segments in Amazon DSP
   • Offers strategies to adjust bidding for these segments

4. Determining Optimal Frequency Point:

   • Uses derivative calculations to plot a "frequency bell curve"
   • Helps identify the ideal frequency for maximum impact and ROAS

5. Identifying Actions from Analysis:

   • Suggests creating audience segments based on current frequency exposure
   • Recommends strategies for bid adjustments and budget allocation

The playbook is designed to work with various KPIs, including clicks, add-to-cart events, purchases, and new-to-brand metrics. It also provides guidance on adapting the analysis for different time frames and campaign types.

Amazon recommends reassessing optimal frequency monthly and has introduced automation features through Amazon QuickSight dashboards for ongoing monitoring and adjustment. Check out the playbook below.