Amazon DSP Ads Frequency Capping Explained with AMC Analysis

Hi guys and welcome to another video on my YouTube channel. I know it's been a while. I've been away busy for so many other things, but we're back and some of you asked me to record additional videos about DSP. So, I've chosen this frequency cap setting and I'm going to demonstrate why is it important for you and how to know how high to set it up in order to save money, but also to reach as many new users as possible. So once you log in in DSP on the right you're usually going to see this frequency cap. It's and it's kind of confusing where it says some gibberish like you saved this amount of money or that. When you click view on details it's even more confusing like uh we estimated you reinvested this amount of money and had this number of impressions. What it actually means is that by setting a frequency cap in your orders on DSP, you limit the number of times that the same user sees your ass. And that's super important because frequent without frequency cap, you can easily have a situation where somebody is seeing your ad too many times, especially if you decide to chase them all around the internet, not only on Amazon. So you will end up building a negative association about your brand that whenever they open something there's your there's your product your product your product. So uh believe it or not that doesn't make any sense that somebody somebody should see your product uh unlimited number of times. So there's a setting in order settings that you can set set at the order level frequency cap and then that's cascaded down to the line item level. But additionally you can set it also on the line item level if you want more granular rank. Now when you open up this uh like a mini report I've selected like the last 90 days and when you hover over like what does it actually means when you when they say budget saved and invested it kind of start to make sense. So this is the estimated amount of budget that without frequency capping would have otherwise been shown to the same users beyond the advertiser set frequency cap and then how to calculate it. So it's really important to know it. But now we're coming to the uh question how to know what's the good impression cap for your campaigns. So let's do that. Um, again we're back to Amazon Marketing Cloud on this because Amazon Marketing Cloud is the one and important one of the most important things that you need to have in your account. If you're not having that, I strongly suggest to do that. So when we go to the Amazon marketing cloud in the use cases, type here frequency. Okay, I already have it. When you type in frequency, you will find Amazon DSP impression frequency and conversions. When you click that and I suggest you put it as a as a star so it's easier next time to find find it you can I strongly suggest that you go ahead and read everything that's shown also see the you have the option to use that like across all the all campaigns you have your frequency across all campaigns or per per campaign so you can segment that out like uh with campaigns ID DSP campaigns okay here they call it DSP campaign but it on in the DSP cell they call it order as you know and then I like the most this part when they have example query results and you can see the preview how your report's going to look like and what it actually means down there in the metrics defined um so back to the actual report so I like whenever I pull some AMC report I like to use the default name of the report just so it's easier for me to to remember which exact report I ran and how I can easily find it later on. So, and I paste that and I put the date like today's June or 25th and I usually add also the the marketplace I'm doing this for date range. Let's select last 90 days. Click submit now because I already done this before uh recording. So when you hit submit down bottom right corner you will see it spinning around until it generates and when when you download you will get something like this. Tam. So it's kind of all around the place. So it's kind of confusing and you cannot draw any conclusion from it. Okay. You can sort it by frequency bucket. This is just the the started and end date and there's a frequency bucket bucket. So frequency bucket number 21 means that users who saw your ad 21 times believe it or not. And then how many purchases, units sold, product sales and all the other metrics like how many unique users, impressions, what's the purchase rate and reach percentage. And similar to the many other reports in audience in in MC, you get like insights uh how to interpret data. But thanks to our good friend Chad GPT, there's an easier way. Just go to your chat GPT. I think it's it can be done on the the free version, but I encourage you to go to the plus uh version. So, I would just go ahead grab the report, pull it, and then I will say that's my spelling. Yeah, I got it right. Then I hit enter, and then we're going to wait for it to crunch the data and give us some kind of a report. And there you have it. After a minute or two, this is what we get. So, purchases versus ad frequency, very, very visually attractive. And you can immediately see how things are going. So on the left you can see the purchases and how purchases are related to the frequency. So you can see easily that around third or fourth iteration of how how many people how much how many times people saw your ad. It's starting to be almost flat. Then purchase rate versus ad frequency almost the same. So somewhere around fifth fifth time should be a threshold I think. Then product sales similar things. So you see it would take ages for you to analyze an analyze manually the all the data depending on your level and skill of the pivot tables and pivot graphs. But here it's really easy win to get everything analyzed. Not only that, but you have also findings here uh for each of the charts shown. So purchases versus ad frequencies. So here purchases peak at a lower mid-frequency range as we saw like around five or six with diminishing returns at higher frequencies and that is followed all along with the each each graph. So the ex the key takeaways the more more most important things out of this data that we pulled from Amazon marketing cloud into chat and did our analysis it's that your perfect frequency cap is five to six exposures. So this is very important. So you see that you will grab most of the sales if you limit your frequency to five or six per user. All everything else beside it, you're just wasting money. So if you don't set it set the frequency cap at five, Amazon DSP is going to continue showing your ad over and over again wasting money because you're being charged in DSP by views, not by clicks. So this is a pure waste of money. So, this is a good way of saving money and showing your ad to more and more audiences. I hope this really helped you clear out the confusion about what's the the correct frequency and before AMC uh utilization, we couldn't even possibly know what would be the best uh frequency cap to set. So, do this for every major order you have in DSP.