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Overview

Onboarding
Optimal frequency analysis
Get started
Within Amazon Marketing Cloud, advertisers have a unique opportunity to measure and attribute conversio
Account management
to the frequency of impressions served to individual users over the course of a historical time window. This
Reporting playbook will dive deeper into the concept of frequency to gain clear optimization insights and direct actio
within Amazon Ads to optimize frequency analysis.
Ads data manager
To do so, we will be assessing the holistic business value with increasing or decreasing the desired frequenc
Exports with an advertising activation. This will include identifying:
Retail Ad Service identifying the budget spend on over-exposure and reinvesting to reach new audiences.

kcabdeef
Global determining where conversions are lost when audiences aren’t being properly retargeted.
identifying the point where the diminishing returns of increased frequency takes effect to according
Sponsored Products
plan marketing efforts.
Sponsored Brands
Without optimizing frequency, an advertiser is subject to overexposing their audience and creating “ad-
Sponsored Display fatigue” and in turn wasted ad spend that could have been reinvested to reaching new audience members.
underexposed audience is one where the audience has seen too few ads over the course of a time period, a
Sponsored TV
is likely to forget about the brand / product when final making the purchase decision.
Amazon DSP

Amazon Marketing Cloud

Overview

How AMC works

AMC consent management

Get started

AMC administration

AMC reporting

Audiences

Advertiser data upload

AMC sandbox

AMC on AWS Clean Rooms

AMC data sources

AMC SQL reference

AMC data aggregation

threshold

AMC Playbooks Benefits

Overview Through the guidance in this playbook, you will get answers to the following questions:

Custom attribution How to measure frequency within a user-base based on your use case?
model
How to find the optimal frequency point algorithmically?
Customer journey How to find the under-served frequency algorithmically?
analytics
How find the over-exposure point with frequency algorithmically?
Customer long-term
value

Audience programmatic Prerequisites

framework
To derive results based on the guidance in this playbook, we assume that you fulfill the following criteria:
Off-Amazon conversions
Access to AMC instance
Optimal frequency
analysis At least 7 days of backfilled data

AMC lookalike audiences

Minimum 4 active campaigns
for promotional events
To effectively use this playbook, we recommend you understand the following concepts:
Media performance
optimization

Enhanced scoring for

overlapping AMC AMC concepts: Specifically concepts such as data aggregation thresholds, privacy limitations, and
 audiences other restrictions listed in the AMC documentation.
Advanced tools center Knowledge of AMC SQL: The process outlined here relies on altering SQL code to match your
purposes.
Basic Python: This playbook is built using Python, and may require some scripting to adapt it to yo
use case.
Overview Amazon QuickSight: You will need to know how to ingest data in Amazon QuickSight to output th
required visualizations.
Onboarding
Data-driven decision-making: A penchant for turning insights into action with media activations fr
Get started AMC performance measures.

Account management

Reporting
Assumptions
While the queries in this playbook are broken out by campaign ID, they can be broken out by any
Ads data manager tactical dimensions available within AMC such as advertiser, audience segment, or entity.
Exports The queries listed here look into measuring the frequency cap on a daily basis. The attributed
conversions towards these daily impressions follow the same attribution logic of the
Retail Ad Service amazon_attributed_events_* table.

Global The queries used in this playbook would be measured over the span of the most recent 90 days and
will use aggregates to get the daily measure used for the insights.
Sponsored Products

Sponsored Brands
Playbook steps
Sponsored Display The playbook is structured to perform the following steps:
Sponsored TV 1. Determine and set frequency caps
Amazon DSP 2. Identify under-served audiences
Activate under-served audiences
Amazon Marketing Cloud
3. Determine optimal frequency point
Overview
4. Identify actions from analysis
How AMC works

AMC consent management  Note

Get started The concepts presented in this playbook will go into the technical depth of the mathematical
concepts and code required to measure the frequency insights utilized in the playbook.
AMC administration

AMC reporting

Audiences Concepts and definitions

Advertiser data upload To help you understand this playbook better, the following section describes key concepts and defines
relevant terminology:
AMC sandbox
Advertising frequency refers to the number of times a particular advertisement is exposed to a target
AMC on AWS Clean Rooms
audience within a given period, typically within a campaign duration. Through this metric, you must aim to
AMC data sources strike a balance between creating brand awareness and avoiding audience fatigue.

AMC SQL reference An Optimal frequency ensures that the ad or message is seen or heard enough times to make an impact
without becoming intrusive or irritating to the audience and being wasteful to the advertising budget. The
AMC data aggregation
threshold
optimal frequency finding can be utilized in media flights by audience creation, bid optimization, and
frequency capping.
AMC Playbooks
Frequency capping allows you (the advertiser) to specify a maximum number of impressions/views a user
Overview can see an ad or a cluster of ads over a specific time period. For example, if an advertiser specifies a freque
Custom attribution cap of 3 over the course of the day, the ad publisher will measure the number of impressions served to a u
model over the course of the day in real time, and once they’ve been served an impression thrice, they will then b
Customer journey excluded from any further advertising for the rest of the day. Finding a cap where the increased frequency
analytics causing diminishing returns in brand value (or an ad fatigue) will help reduce media spend waste.
Customer long-term Frequency buckets, in the context of this playbook, is a accumulation of spend and return value.
value

Audience programmatic
framework
Frequency by ad format
Off-Amazon conversions
The frequency approach demonstrated in this playbook will aim to factor in each ad format available in AM
Optimal frequency
analysis to generate a holistic analysis across all advertising touch points that a user can experience within a
campaign. This will include anything available within Amazon demand-side platform (Amazon DSP) and
AMC lookalike audiences
for promotional events Sponsored ads tables within AMC.

Media performance The following is a baseline query that measures some aggregate metrics across all the ad types. We will th
optimization build upon this frequency measure to collect some of the advanced insights that will address our major use
Enhanced scoring for
cases.
overlapping AMC
 audiences
SQL
Advanced tools center
Click to see: Query to measure an aggregate metric

Sample output
Overview
And the output is below is up to a frequency bucket of 15:
Onboarding

Get started frequency_bucket clicks purchases units_sold product_sales add_to_cart deta

Account management
0 1884 1500 1802 24312.07 1428 2928
Reporting

Ads data manager 1 30699 957 1116 13245.27 2031 6940

Exports
2 28280 1499 1756 19177.65 2418 5754
Retail Ad Service

Global
3 24714 1781 1974 22980.08 2046 5035
Sponsored Products

Sponsored Brands 4 27232 2080 2318 27568.68 2235 4980

Sponsored Display
5 24084 2349 2589 30960.55 2334 4528
Sponsored TV

Amazon DSP 6 23967 2674 2927 35280.42 2514 4392

Amazon Marketing Cloud

7 22393 3131 3399 40744.29 2634 4278
Overview

How AMC works

8 22432 3201 3481 43197.35 2625 4297
AMC consent management

Get started 9 21794 3363 3663 45258.55 2775 4171

AMC administration
10 21745 3677 3980 48629.88 2814 4387
AMC reporting

Audiences
11 21218 3943 4241 52537.46 3129 4328
Advertiser data upload

AMC sandbox 12 21437 4080 4359 53821.38 3168 4410

AMC on AWS Clean Rooms

13 21171 4180 4503 56641.58 3132 4349
AMC data sources

AMC SQL reference 14 21293 4330 4666 58319.51 3237 4485

AMC data aggregation
threshold
15 20705 4355 4666 58367.99 3207 4449
AMC Playbooks

Overview The query will group users by the number of impressions they were served during the time window (in this
Custom attribution case 90 days), and measure the total number of clicks, purchases, units_sold, attributed to those impressio
model

Customer journey Frequency analysis for first-party datasets

analytics
Depending on the first-party (1P) data uploaded, it's possible to incorporate frequency analysis queries int
Customer long-term
value 1P data structures. The data uploaded must include revenue data with time stamps of conversions attache
to a user_id that can match to the AMC data, it's possible to tie advertising frequency to non-endemic
Audience programmatic
framework attribution. To do so, you would just need to UNION the off-Amazon conversion tables with the on-Amazo
conversions in the Common Table Expression (CTE) to implement in the model.
Off-Amazon conversions
Additionally, this playbook use case can be applied for advertisers who wish to upload log files from anoth
Optimal frequency
analysis ad server to create additional off-Amazon impressions. This will ensure that your entire advertising ecosyst
is accounted for to measure the optimal frequency for action. To do so, you would want to ensure your
AMC lookalike audiences
for promotional events uploaded impressions can be matched to the ad placement level to that which can be found in AMC.

Media performance
optimization

Enhanced scoring for

overlapping AMC Solution methodology
 audiences
Advanced tools center The section below outlines a general approach to defining the inputs to calculate:

Minimal frequency
Optimal frequency
Maximum frequency bucket caps across campaigns
Overview

Onboarding The goal of this section is to provide a potential use case and a walk through on how to use a frequency
measurement approach to solve for it.
Get started

Account management Set frequency caps

Reporting This approach will measure if the accumulated investment after a certain point (cut-off) is outweighing the
accumulating returns at an additional frequency bucket. To do so, measure cumulative cost and cumulative
Ads data manager
return KPI relationship across the frequency buckets and measure each bucket compared to the bucket prio
Exports

Retail Ad Service

Global

Sponsored Products

Sponsored Brands

Sponsored Display

Sponsored TV

Amazon DSP

Amazon Marketing Cloud

Overview
To derive frequency buckets, we introduce a measure called the cumulative sum for both cost and return
How AMC works (such as total sales and purchases). These will allow us to measure the relative change in spend and return
AMC consent management value with the increased frequency in the market. Before you get to calculating frequency caps, familiarize
yourself with the following definitions and equations:
Get started
Cumulative cost: The total cost of each frequency bucket along with all the frequency buckets befo
AMC administration
it.
AMC reporting Cumulative cost = Cost (at N frequency Bucket) + Cost (at N-1 Frequen
Bucket)
Audiences
Cumulative return KPI: The total return KPI of each frequency bucket along with all the frequency
Advertiser data upload
buckets before it.
AMC sandbox Cumulative Return KPI (Purchases) = Total Purchases (at N frequency
bucket) + Total Purchases (at N-1 frequency bucket)
AMC on AWS Clean Rooms
Cumulative cost percentage: The percentage value of the cumulative cost at each frequency bucke
AMC data sources
the total cumulative cost of all the frequency buckets.
AMC SQL reference Cumulative Cost Percentage = Cost (at N frequency bucket) / Total Cos
of all Frequency Buckets
AMC data aggregation
threshold
Cumulative return percentage: The percentage value of the cumulative return kpi at each frequenc
AMC Playbooks bucket / the total cumulative return KPI of all the frequency buckets.
Cumulative Return Percentage (Purchases) = Purchases (at N frequency
Overview
bucket) / Total Purchases of all Frequency Buckets
Custom attribution
model Percent difference: The difference (subtract) of the cumulative cost percentage from the cumulativ
Customer journey return percentage to measure the differences in cumulative investment and return from a cost and
analytics return standpoint.
Customer long-term
Percent Difference = Cumulative Conversion Percentage - Cumulative Co
value Percentage

Audience programmatic Percent change: Using the percent difference column, you will subtract the percent difference of ea
framework
row from the previous frequency bucket to measure the relative change in the ratio of cumulative c
Off-Amazon conversions and return at each frequency bucket. This metric will be used to identify the recommended frequen
Optimal frequency
cap.
analysis Percent Change = Percent Difference (at N Frequency Bucket) - Percent
Difference (at N - 1 Frequency Bucket)
AMC lookalike audiences
for promotional events

Media performance First, calculate cumulative percentages and then use the percent change to determine the frequency cap.
optimization

Enhanced scoring for

overlapping AMC
To do so, we take the cumulative cost and cumulative KPI volume at each frequency bucket and then meas
 audiences the cumulative percentage of each based on their overall volume of conversions. This is because frequency
Advanced tools center buckets don't exist in a vacuum and that a total investment has to increase to increase the frequency bucke
Hence the need to consider the cost of all the users prior who had a frequency at a given bucket and below

To calculate the cumulative return percentage, see the example (below), if the conversions at frequency
bucket 1 are 9,203 and the conversions at frequency bucket 2 are 6,532, then the cumulative frequency at
Overview bucket 2 is 15,735 (9,203+5,532). If the total cumulative conversions (for all frequency buckets) is 48,795,
then the cumulative conversion percentage at frequency bucket 2 is 15,735 / 48,795 = 32%.
Onboarding
Repeat this step with the cost column at each of the frequency buckets to get both the cumulative
Get started
conversions percentage and the cumulative cost percentage. With these two columns, you will then subtra
Account management the cumulative cost percentage from the cumulative conversions percentage to get the values for the Perce
difference column.
Reporting
And finally, subtract the percent difference at each row and the percent difference from the previous row t
Ads data manager
get the percentage change column. For example, if your percent difference in row two is 14.18% and your
Exports percent difference in row one is 9.90%, then the percentage change in row 2 is 4.28%.

Retail Ad Service The percentage change column approaches zero as the frequency bucket increases. At the point where the
percent change passes the zero threshold, the growth rate of the additional cost exceeds the growth rate o
Global the additional return value. It is at this point when the percentage change passes zero (in our example, it
passes zero at frequency bucket = 4) that you should set for your frequency cap.
Sponsored Products
An example of how this could look is depicted below:
Sponsored Brands

Sponsored Display
Cumulative Cumulative
Frequency Cumulative Cumulative
Sponsored TV Conversions Cost conversions cost
bucket conversions cost
% percentage
Amazon DSP

Amazon Marketing Cloud 1 9,203 9,203 7,801 $7,801.20 19% 9%

Overview
2 6,532 15,735 7,933 $15,733.90 32% 18%
How AMC works

AMC consent management

3 5,024 20,759 7,492 $23,225.80 43% 27%
Get started

AMC administration 4 4,157 24,916 7,060 $30,286.20 51% 35%

AMC reporting
5 3,569 28,485 6,621 $36,907.20 58% 42%
Audiences

Advertiser data upload

6 3,213 31,698 6,217 $43,123.70 65% 50%
AMC sandbox

AMC on AWS Clean Rooms 7 2,564 34,262 5,884 $49,007.40 70% 56%

AMC data sources

8 2,554 36,816 5,598 $54,605.70 75% 63%
AMC SQL reference

AMC data aggregation 9 2,276 39,092 5,324 $59,930 80% 69%

threshold

AMC Playbooks
10 1,985 41,077 5,036 $64,965.80 84% 75%
Overview

Custom attribution 11 1,773 42,850 4,811 $69,776.50 88% 80%

model

Customer journey
analytics 12 1,794 44,644 4,609 $74,385 91% 85%

Customer long-term
value 13 1,485 46,129 4,376 $78,760.60 95% 90%
Audience programmatic
framework
14 1,376 47,505 4,217 $82,977.40 97% 95%
Off-Amazon conversions

Optimal frequency 15 1,290 48,795 4,093 $87,070 100% 100%

analysis

AMC lookalike audiences

for promotional events This query accounts for multiple days of performance and averages the frequency buckets and performanc
Media performance by date to account for any variance that may take place over a long period of time. The method for analyzi
optimization is by applying an average aggregate on the date flag that will be used to normalize the total cost and total
Enhanced scoring for
conversions. Using this approach, we are looking for the point in which the percentage change column goe
overlapping AMC
 audiences below zero, and the recommended frequency cap would be the last percentage change value above zero. I
Advanced tools center this case, we would set our daily frequency cap to 4.

This query can be used to measure the frequency cap of any of the KPIs tracked within AMC using the
cumulative cost and return methodology above. In the query below, we will demonstrate this use case acro
the following KPIs:
Overview
clicks
Onboarding Use when focused on building your frequency around maximizing upper funnel engagement
and site traffic. Could also use Views.
Get started
add_to_cart / detail_page_view
Account management
Use when focused on building your frequency around mid funnel engagement, and want to
Reporting reinvest towards a rules based audience to re-target cart abandoners.

Ads data manager purchases / units_sold / product_sales

Use when optimizing your frequency around maximizing lower funnel attribution, as well as
Exports
when to reinvest towards reaching new audiences
Retail Ad Service
new_to_brand_product_sales
Global Use when optimizing your frequency around acquiring net new customers.

Sponsored Products
All aggregated on a daily basis. This query can be adjusted to account for any time frame in which you are
Sponsored Brands interested in measuring frequency, as well as any conversion metric you want to build frequency caps arou
Sponsored Display SQL
Sponsored TV Click to see: Query to check optimal frequency
Amazon DSP
Sample output
Amazon Marketing Cloud

Overview frequency_bucket clicks_percent_change purchases_percent_change unts_sold_percent_c

How AMC works

0 -0.02239 0.09392 0.10236
AMC consent management

Get started
1 -0.00982 0.04336 0.04356
AMC administration

AMC reporting 2 -0.00654 0.03660 0.03629

Audiences
3 0.00587 0.02391 0.02320
Advertiser data upload

AMC sandbox 4 -0.00412 0.02170 0.02053

AMC on AWS Clean Rooms
5 -0.00516 0.01206 0.01235
AMC data sources

AMC SQL reference

6 -0.00412 0.00476 0.00532
AMC data aggregation
threshold
7 -0.00360 0.00052 -0.00011
AMC Playbooks

Overview
8 -0.00294 0.00071 -0.00041
Custom attribution
model
9 -0.00201 -0.00153 -0.00087
Customer journey
analytics

Customer long-term 10 -0.00084 -0.00162 -0.00190

value

Audience programmatic 11 0.00037 -0.00206 -0.00159

framework

Off-Amazon conversions
12 0.00055 -0.00293 -0.00286
Optimal frequency
analysis
13 0.00113 -0.00192 -0.00201
AMC lookalike audiences
for promotional events

Media performance 14 0.00058 -0.00194 -0.00231

optimization

Enhanced scoring for

overlapping AMC frequency bucket clicks percent change purchases percent change unts sold percent c
 audiences
Advanced tools center
15 0.00051 -0.00209 -0.00216

Using the methodology above, we can plot the change in percent difference over time to get an aggregate
Overview report of the frequency capping point.

Onboarding Example query output visualization

Get started The visualization is for multiple conversion metrics

Account management

Reporting

Ads data manager

Exports

Retail Ad Service

Global

Sponsored Products

Sponsored Brands

Sponsored Display

Sponsored TV

Amazon DSP

Amazon Marketing Cloud

Overview

How AMC works

AMC consent management

Get started
Here, we can see that the percent change hovers at around zero until around the frequency bucket of 8 to
AMC administration
which it then drops down to 9 and stays significantly below. Using this guidance, we can use 8 as our
AMC reporting frequency cap and invest any additional budgets to reach new audiences.

Audiences In looking at the daily frequency rate we can see that the percent change dips below 0 at the frequency
bucket of around 8. So If we were to use this as a guide for setting a frequency cap at the daily level we cou
Advertiser data upload
go with 8 for the down funnel conversions (purchases, sales, add to cart, detailed page views).
AMC sandbox
For the upper funnel engagement metrics (clicks), we can see that the profitability in driving engagement
AMC on AWS Clean Rooms increase towards the frequency bucket of 3, and then starts to approach zero at the frequency bucket of 5
crosses at 6. So, if we were to be focused on driving reach and clicks, we would want to try to set our
AMC data sources
frequency minimum at 2 and our maximum at 5.
AMC SQL reference
Let's take another example with metrics illustrated below. If we were to optimize frequency towards total
AMC data aggregation sales over the span of a month across a single line_item, our model would recommend we set the frequenc
threshold cap at 5.
AMC Playbooks

Overview
frequency_bucket cost cumulativecost product_sales cumulativeproduct_sales
Custom attribution
model
0 0.000 0.000 6100.140 6100.140
Customer journey
analytics

Customer long-term 1 8875.213 8875.213 15399.200 21499.340

value

Audience programmatic
framework
2 7230.394 16105.608 6643.590 28142.930

Off-Amazon conversions
3 4811.318 20916.926 3185.340 31328.270
Optimal frequency
analysis

AMC lookalike audiences 4 6313.664 27230.589 3392.810 34721.080

for promotional events

Media performance 5 3595.224 30825.813 1538.020 36259.100

optimization

Enhanced scoring for

overlapping AMC
 audiences frequency_bucket cost cumulativecost product_sales cumulativeproduct_sales
Advanced tools center

6 3108.070 33933.883 1285.560 37544.660

7 2559.675 36493.557 875.980 38420.640

Overview

Onboarding
8 2884.820 39378.377 933.110 39353.750
Get started

Account management 9 2420.816 41799.193 620.630 39974.380

Reporting
10 2208.339 44007.532 504.590 40478.970
Ads data manager

Exports
In doing so, you would leave with a cumulative ROAS (cumulatve sales / cumulative costs) of $1.17. If you
Retail Ad Service were to choose a more conservative frequency cap of, say 9 over a span of a month, your cumulative ROAS
would drop 20% to $0.95, which would mean your overall spend was greater than your overall sales. So,
Global optimizing your frequency has a significant impact on campaign performance.
Sponsored Products

Sponsored Brands

Sponsored Display

Sponsored TV

Amazon DSP

Amazon Marketing Cloud

Overview

How AMC works

AMC consent management

Get started

AMC administration

AMC reporting

Audiences

Advertiser data upload

AMC sandbox

AMC on AWS Clean Rooms

AMC data sources

AMC SQL reference Identify under-served audiences

AMC data aggregation This approach finds the point in which the advertising return KPI compared to costs will start to increase to
threshold
positive with an increased advertising investment towards a higher frequency. This approach here can help
AMC Playbooks users define the right value threshold for identifying audiences that are considered under-served from a
frequency standpoint.
Overview
In cases like the above example with clicks, you get a pretty clear direction on what should serve as the
Custom attribution
model frequency minimum and frequency cap, but with some of the lower funnel metrics, there are ways to
determine the point in which the cumulative cost and KPI relationship is more lucrative by increasing the
Customer journey
analytics frequency. To do this, we can utilize python to measure the derivatives of the cumulative percentage to fin
point in which the values increase above zero.
Customer long-term
value To demonstrate, we will look at measuring the cumulative ROAS (cumulative sales / cumulative costs) at ea
Audience programmatic frequency bucket and see if we can plot a curve that helps to identify the frequency minimums.
framework
An example starting point will use some dummy data below:
Off-Amazon conversions

Optimal frequency
analysis frequency_bucket purchases product_sales cost roas cumulative_sales c

AMC lookalike audiences

for promotional events 1 895 11754.29 1468.15 8.0062 11754.29 1
Media performance
optimization

Enhanced scoring for

overlapping AMC frequency bucket purchases product sales cost roas cumulative sales c
 audiences
Advanced tools center
2 408 5818.44 818.37 7.1098 17572.73 2

3 237 3188.28 563.93 5.6537 20761.01 2

Overview

Onboarding 4 151 2023.61 415.52 4.8701 22784.62 3

Get started
5 121 1692.25 331.79 5.1003 24476.87 3
Account management

Reporting 6 85 1479.59 280.26 5.2794 25956.46 3

Ads data manager

7 68 1082.16 234.24 4.62 27038.62 4
Exports

Retail Ad Service 8 70 1129.79 203.06 5.5639 28168.41 4

Global
9 47 626.7 183.31 3.4188 28795.11 4
Sponsored Products

Sponsored Brands
10 65 1030.47 472.08 2.1828 29825.58 4
Sponsored Display

Sponsored TV 11 53 1020.28 276.46 3.6906 30845.86 5

Amazon DSP
12 49 696.6 183.34 3.7995 31542.46 5
Amazon Marketing Cloud

Overview 13 27 453.66 146.5 3.0966 31996.12 5

How AMC works

AMC consent management Plotting the frequency cap curve using percent change in Python, we get the following:
Get started plt.plot(performance_t["frequency_bucket"], performance_t['percentage_change'],
AMC administration
'r-', label='percent_change') plt.legend() plt.rcParams["figure.figsize"] = (18,
5) plt.show()
AMC reporting

Audiences

Advertiser data upload

AMC sandbox

AMC on AWS Clean Rooms

AMC data sources

AMC SQL reference

AMC data aggregation

threshold

AMC Playbooks Here, we can see that the percent change hovers at around zero until around the frequency bucket of 8 to
Overview which it then drops down to 9 and stays significantly below. Using this guidance, we can use 8 as our
frequency cap and invest any additional budgets to reach new audiences.
Custom attribution
model Plotting ROAS, we can use the same Python function below using ROAS in place of percent change.


Customer journey
analytics
plt.plot(performance_t["frequency_bucket"], performance_t['roas'], 'r-', labe
Customer long-term
value plt.legend()
plt.rcParams["figure.figsize"] = (18, 5)
Audience programmatic plt.show()
framework

Off-Amazon conversions

Optimal frequency
analysis

AMC lookalike audiences

for promotional events

Media performance
optimization

Enhanced scoring for

overlapping AMC
 audiences
Advanced tools center

Overview

Onboarding

Get started

Account management
In order to make a recommendation of minimum frequency using diminishing returns, we would need to lo
Reporting
into using derivatives to smoothen the line and be able to build a bell curve of optimal frequency.
Ads data manager
To do so, we will be fitting a non-linear model on a set of data using python. We will use the curve_fit
Exports function within scipy.optimize  in which will take into account the uncertainties on the response that is Y

Retail Ad Service The function code will utilize the model below:

Global

Sponsored Products

Sponsored Brands

Sponsored Display

Sponsored TV

Amazon DSP
Where X is the frequency bucket, the Y represents the cumulative sales / cumulative cost at each frequency
Amazon Marketing Cloud
bucket, and A and C will represent the uncertainty principle at each frequency bucket.
Overview

How AMC works

def f_model(x, a, c):

AMC consent management return pd.np.log((a + x)**2 / (x - c)**2)

Get started

AMC administration Now, we will perform the fit with the curvefit algorithm using the fmodel() function we created and give an
initial guess for the parameters (3,2). The curve fit model will follow a least-square approach to minimize t
AMC reporting function below:
Audiences

Advertiser data upload

AMC sandbox

AMC on AWS Clean Rooms

AMC data sources

AMC SQL reference

AMC data aggregation For the ydata, you will be measuring cumulative ROAS by way of taking the cumulative sales / cumulative
threshold costs.


AMC Playbooks

Overview popt, pcov = curve_fit(

f=f_model, # model function
Custom attribution
model
xdata=performance_t["frequency_bucket"], # x data
ydata=performance_t["percent_diff"], # y data
Customer journey p0=(3, -2) # initial value of the parameters
analytics #sigma=df["Dy"] # uncertainties on y
)
Customer long-term
value

Audience programmatic
Once you collect the a_opt uncertainties, you will then take the first derivative of Y and X and using the
framework
np.gradient() function and then the second derivative of that using the same gradient function to get a be
Off-Amazon conversions curve shaped curve for the frequency distribution.


Optimal frequency
analysis

AMC lookalike audiences

for promotional events a_opt, c_opt = popt
x = np.linspace(0,25,25)
Media performance dx = x[1]-x[0]
optimization y = pd.np.log((a_opt + x)**2 / (x - c_opt)**2)
Enhanced scoring for # Take the Derivative of Y and X
overlapping AMC
 audiences
Advanced tools center # Take the second derivative of Y and X
dydx = np.gradient(dydx, x)

Taking the derivative, you can then plot the values across the frequency buck

Overview x = np.linspace(0,25,25)
lines = [-dydx]
Onboarding colors = ['g']
labels = ['Derivative of Percent Diff']
Get started
# fig1 = plt.figure()
Account management for i,c,l in zip(lines,colors,labels):
plt.plot(x,i,c,label='l')
Reporting plt.legend(labels)
plt.show()
Ads data manager

Exports

Retail Ad Service And the output is below:

Global

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Amazon DSP

Amazon Marketing Cloud

Overview

How AMC works

Activate underserved audiences
AMC consent management
Using this function, we would look at the first point that the second derivative of percent diff crosses the 0
Get started
line as the minimum frequency. In this case, we would want to look at using a minimum frequency of 6, alo
AMC administration with using the other analysis that would show a maximum frequency of 8.

AMC reporting As an action coming out of this minimum frequency value, we can create audiences who have less than a
frequency of 6 and target them more aggressively with advertising. The AMC query below shows you how
Audiences create these audiences to activate against.
Advertiser data upload

AMC sandbox
 Note
Run the following SQL script in the audience query editor
AMC on AWS Clean Rooms

AMC data sources

SQL
AMC SQL reference
Click to see: Audience creation on frequency bucket
AMC data aggregation
threshold From here, you can adjust your bids strategy in Amazon DSP for these audience members to reach them to
get them above the minimum.
AMC Playbooks

Overview
Determine optimal frequency point
Custom attribution
model Now that we have the framework for minimum frequency and maximum frequency that we can action upo
the next option would be to see if we can fully plot the frequency bell curve across each bucket to identify
Customer journey
analytics optimal frequency point.

Customer long-term Using a similar approach as before, we will be using derivatives on the “percent diff” column to create a cu
value that will help us identify the optimal frequency with respect to the cumulative sales and costs at each buck
Audience programmatic
framework
For this case, we will follow the guide below:

Off-Amazon conversions

Optimal frequency
analysis def f_model(x, a, c):
return pd.np.log((a + x)**2 / (x - c)**2)
AMC lookalike audiences
for promotional events

Media performance popt, pcov = curve_fit(

optimization f=f_model, # model function
xdata=performance_t["frequency_bucket"], # x data
Enhanced scoring for ydata=performance_t["percent_diff"], # y data
overlapping AMC
 p0 (3, 2) # initial value of the parameters
audiences
#sigma=df["Dy"] # uncertainties on y
Advanced tools center )

a_opt, c_opt = popt

x = np.linspace(0,25,25)
Overview dx = x[1]-x[0]
y = pd.np.log((a_opt + x)**2 / (x - c_opt)**2)
Onboarding #take the derivative of Y and X
dydx = np.gradient(y, x)
Get started #take the second derivative of Y and X
dydx = np.gradient(dydx, x)
Account management

Reporting
And then plot the results using the following code:
Ads data manager

Exports
x = np.linspace(0,25,25)

lines = [-dydx]
Retail Ad Service
colors = ['g']
Global
labels = ['GREEN']

Sponsored Products # fig1 = plt.figure()

for i,c,l in zip(lines,colors,labels):
Sponsored Brands plt.plot(x,i,c,label='l')
plt.legend(labels)
Sponsored Display plt.show()

Sponsored TV

Amazon DSP

Amazon Marketing Cloud

Overview

How AMC works

AMC consent management

Get started

AMC administration

AMC reporting

Audiences Here, we can see that the optimal frequency level crosses the zero threshold at around the 6 bucket to 8
Advertiser data upload
bucket with the apex being at around 7. This would be the point in which the cumulative sales are peaking
against the cumulative costs.
AMC sandbox
The action from this result would be to aim to adjust bidding so that you are trying to get as many people
AMC on AWS Clean Rooms possible to a frequency of 7, reinvesting budget to reach new audiences instead of serving these users
AMC data sources additional messaging.

AMC SQL reference SQL

AMC data aggregation Click to see: Audience creation on frequency bucket

threshold
The query above will create audiences within Amazon DSP within that time window that can be activated
AMC Playbooks upon to maintain an optimal frequency of 7 for the campaign.
Overview

Custom attribution
model
Automation architecture
Customer journey The automation component of the playbook will live as an Amazon Quicksight dashboard showing the
analytics
cumulative totals, percentages, percent differences, and percent changes that can further filtered by
Customer long-term campaign and measured over a specified time period.
value

Audience programmatic
framework
 Note
We recommend remeasuring the optimal frequency monthly to utilize the latest findings and
Off-Amazon conversions accordingly minimize your ad budget.
Optimal frequency
analysis
To get started, you will need to define a workflow that can be utilized to visualize the frequency caps to ap
AMC lookalike audiences
for promotional events to your specific campaign.

Media performance To do so, you would need to:

optimization

Enhanced scoring for

overlapping AMC Establish a workflow call from AMC on a regular cadence that measures the ongoing percent differe
 audiences to pull into a BI tool of your choice to see how the optimal frequency cap changes update with time
Advanced tools center Establish a scheduled cadence for re-measuring the frequency cap based on what is feasible for
refreshing and reactivating audiences to support.
Use the mid-campaign audience optimization approach in the Programmatic Audience Framework
playbook to maintain this strategy.
Overview

Onboarding
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Retail Ad Service

Global

Sponsored Products

Sponsored Brands

Sponsored Display

Sponsored TV

Amazon DSP

Amazon Marketing Cloud

Overview

How AMC works

AMC consent management

Get started

AMC administration

AMC reporting

Audiences

Advertiser data upload

AMC sandbox

AMC on AWS Clean Rooms

AMC data sources

AMC SQL reference

AMC data aggregation

threshold

AMC Playbooks

Overview

Custom attribution
model

Customer journey
analytics

Customer long-term
value

Audience programmatic
framework

Off-Amazon conversions

Optimal frequency
analysis

AMC lookalike audiences

for promotional events

Media performance
optimization

Enhanced scoring for

overlapping AMC