Welcome to Cherry Picked. A monthly newsletter from the minds of the Gigi team covering the Streaming TV and commerce media insights you just gotta know.

EXTRA EXTRA ๐Ÿšจย AWS Cleans Rooms are the latest, greatest data collaboration tool! So great, in fact, that the Gigi team has officially deprecated AMC uploader for all data collaboration ๐Ÿ˜ฑ

But why is it so great, you ask? In this issue of Cherry Picked, weโ€™re breaking down the top 4 ways AWS Clean Rooms enhance data collaboration, our potentially controversial take on Path to Purchase reports, and a sneak peek at the inner workings of how AWS Clean Rooms actually work.

Weโ€™re not telling you to keep your room clean, but we think you should.

Letโ€™s dive in ๐Ÿ‘‡

News Flash ๐Ÿ“ฐ

4 ways AWS Clean Rooms enhances data collaboration capabilities

Data collaboration is foundational to the future of our business. That goes for us here at Gigi and across broader ad tech. When building products to enable data collaboration for our customers, we seek to address three central tenets: 1) maximizing privacy and security, 2) minimizing technical and operational friction, and 3) capturing as many rich signals as possible to enable more effective targeting and measurement.

Our first iteration of the Gigi 1P platform sought to do this for brands by allowing them to authenticate their DTC storefront and collaborate all their transactional data with Amazon ads via the AMC Uploader. This went well. Over the past 6 months, weโ€™ve helped dozens of brands build AMC lookalike audiences using 1P and Amazon signals to deterministically measure outcomes after being exposed to an STV ad across both Amazon and 1P sources. This week, we launched a new set of tools for data collaboration built on AWS Clean Rooms. By doing so, weโ€™re betting our core data collaboration infrastructure on AWS Clean Rooms. Here are the top reasons why we made this choice and why brands should care:

  1. AWS Clean Rooms is the most private and secure way to collaborate data with Amazon

    There are now four ways to collaborate first-party data with Amazon ads, all with varying degrees of complexity and security: a) the Amazon Ad Tag, b) Conversions API (CAPI), c) AMC Uploader, and d) AWS Clean Rooms. With the first three options, brands must bring their data โ€œinโ€ to Amazon. This is either done directly via the Amazon DSP or AMC. Bringing data โ€œinโ€ means data needs to move from a brandโ€™s internal data environment into Amazonโ€™s. With AWS Clean Rooms, brands do not need to bring data โ€œinโ€ to AMC; rather, a set of queries can be built to collaborate with Amazon Ads without moving data outside of oneโ€™s own data environment. This is also known as data isolation, the most private and secure way to collaborate data with Amazon Ads. This isnโ€™t to say the other means of data collaboration are not secure or fraught with risk. Weโ€™re just saying that using AWS Clean Rooms is the most secure way (compared to all other options) to collaborate data with Amazon ads. And weโ€™re thrilled to announce that - as of this week - AWS Clean Rooms is the only way Gigi customers collaborate their data with Amazon Ads.

  2. AWS Clean Rooms bring an interoperable infrastructure for brands to collaborate with other publishers and ad platforms

    As data collaboration becomes increasingly central to marketers, keeping up with each ad platformโ€™s unique tools and mechanisms will be challenging. There will always be another Conversions API or ad tag. Marketers need to invest in an infrastructure that will be interoperable with the various places they allocate their advertising budgets and attention. Building bespoke connections for each ad platform wonโ€™t make sense and creates duplicative work. Thatโ€™s why weโ€™re so bullish on AWS Clean Rooms: it provides marketers with an interoperable infrastructure to collaborate data with other publishers and ad platforms. It is not limited solely to Amazon Ads. Since its inception, AWS Clean Rooms has done a magnificent job of building supply partnerships. Both TikTok and Meta are promoted publicly as partners, and behind the scenes, we know that most TV publishers already enable collaboration with AWS Clean Rooms. We are excited to work with our customers to help them expand their data collaboration strategy beyond Amazon Ads.

  3. AWS Clean Rooms allows brands to improve match rates for ad targeting and measurement

    Match rates are the primary metric to measure the fidelity of a data collaboration. They measure how well your audience list connects with the advertising platformโ€™s customer list. A higher match rate means your ads can reach more people you intended, and the greater the insights one can extract from bringing the two data sets together. Since our launch, weโ€™ve seen an average match rate of 49.2%. Across broader ad tech, this would be considered quite good. However, match rates can be improved by using AWS Entity Resolution when using AWS Clean Rooms for data collaboration. With AWS Entity Resolution, brands can enrich and deduplicate their own first-party data using AWSโ€™s built-in machine learning models. Additionally, brands who are customers of 3rd party ID partners like LiveRamp, Transunion, and UID2 can use the signals from these ID partners to enrich their 1P datasets prior to the collaboration with Amazon Ads. Through some initial tests, we are already seeing improved match rates across our customer base and are excited to roll this out across all of our customers.

  4. AWS Clean Rooms will allow brands to build custom lookalike models within AMC
    A little over a year ago, Amazon Ads introduced the ability to build lookalike audiences with Amazon Marketing Cloud for their Amazon DSP campaigns. Brands could create a pool of their highest spending customers over the past year and ask Amazon to find 5-10 million people who look like them. But how Amazon finds those 5-10 million people has been a black box. None of us have known what signals they use to build their lookalike models. With AWS Clean Rooms, brands can soon build custom lookalike models using any signal available within Amazon Marketing Cloud. This not only improves the transparency of how lookalike models are built but also allows brands to optimize their audiences in-flight based on signals theyโ€™re receiving from their advertising campaigns. Weโ€™ll follow the evolution of this future product release and prioritize working on this in the coming months.

We are confident that building our core data collaboration infrastructure for AWS Clean Rooms will improve our customers' advertising outcomes. Please contact us if youโ€™d like to begin using AWS Clean Rooms to collaborate data with Amazon Ads.

Hey You ๐Ÿ‘‹

The infamous Path to Purchase reportโ€ฆ

In theory, Path to Purchase reports offer exactly what marketers are looking for. A way to see all of the Amazon ad units users were exposed to, and purchased from taking a specific path. Whenever anyone mentions STV ads and AMC, path to purchase reports are immediately mentioned. This can be via the instructional query library or through most AMC tool providers. Guess what? We donโ€™t like them.

Path to purchase reports are not actionable, and they donโ€™t provide an accurate picture of total conversions due to AMCโ€™s aggregation thresholds.

Data overload

Firstly, when you get a Path to Purchase report youโ€™re inundated with thousands upon thousands of rows of different paths users take to purchase. Brands that run both Sponsored and Amazon DSP ads have so many placements throughout a buyerโ€™s journey, that users could see up to 200 different ads before buying. So you can see that a user that viewed an STV ad, 2 Amazon DSP display ads, 1 Sponsored Brand ad, and 2 Sponsored Product ads has the highest likelihood to purchase. What are you supposed to do with that insight? Spend more on Amazon ads? You canโ€™t control which ads get shown to users when, and how to change a userโ€™s paths in the midst of their buying journey. Path to Purchase reports are essentially a proverbial pat on the back for participation: congrats on spending money on Amazon ads that lead to purchases.

Insight Inaccuracies

Weโ€™ve also observed data discrepancies in Path to Purchase reports. Over the past several years, weโ€™ve seen inconsistencies between summed conversions not adding up to the number of conversions seen in the Amazon Ads campaign manager. We think this is because the Path to Purchase report must have 2 or more users take the exact same path to show up in the report. To which we have to ask, with that many ad placements and possible purchase paths, what is the likelihood that 2 or more users are seeing the exact same ads along the same path within the same time period? Unless the path is simple, the odds are not in our favour. Hence, the discrepancies.

Visualizing purchase path insights

At Gigi, we intentionally omitted Path to Purchase reports in our measurement suite. However, we do believe it is important for our customers to understand how their STV campaign, ADSP Display campaigns, and Sponsored Ads campaign work in harmony amongst each other to drive purchasers. So, how have we addressed this?

Weโ€™ve created a Paths tab dedicated to surfacing visualizations that actually help action a path to purchase. For example, weโ€™ve created a Venn diagram that breaks down how many users saw different types of ads (Sponsored, STV, and/or other Amazon DSP) separately or together and if they purchased or not. This data is the same type of data received in the standard Path to Purchase reports, but queried at a higher level. This enables us to show all of the conversions in a digestible way that can be used to make quick actions like extending budget if you see users that view STV, Sponsored and other Amazon DSP ads have a 3x higher likely purchase rate versus only seeing Sponsored and other Amazon DSP ads.

While the detailed Path to Purchase reports can be filled with insights data, its ultimately overwhelming for brands to action and is too granular for AMC to extract insights given aggregation thresholds. Instead, Path to Purchase insights should give you easily actionable insights. You donโ€™t need to know that a single user saw 3 STV ads, 4 Amazon DSP, and 2 Sponsored ads before purchasing. But you should know if multiple users seeing those three ad types incrementally drive higher purchase rates so you can adjust your strategy accordingly.

Talk Nerdy to Me ๐Ÿค–

Why collaboration with AMC on AWS Clean Rooms is more secure

To collaborate your first-party data in as secure a way as possible, limiting the movement of your data is crucial. While it can be a powerful tool for measuring deterministic outcomes across first-party channels and Amazon ads, data collaboration requires rigorous data-handling practices to protect sensitive information. This is ultimately why we chose to use AMC on AWS Clean Rooms as our preferred means of collaboration over AMC Uploader.

AMC Uploader streamlines the data preparation and upload process into AMC, automating tasks like normalization and hashing to meet AMC's data requirements. However, AMC on AWS Clean Rooms brings data security and privacy to higher level as it acts as a bridge between data sources, providing a collaborative environment where brands can securely combine their first-party data with Amazon Ads' signals within their AWS account, enabling deeper analysis and audience insights without moving data outside their AWS environment.

Letโ€™s dive into how AMC on AWS Clean Rooms enables a more secure means of collaboration:

Auto-anonymization of PII

Data hashing or encryption is critical to ensuring Personally Identifiable Information (PII) is anonymized. With AMC Uploader, hashing occurs before uploading data into AMC and it is the brandโ€™s responsibility to ensure data is properly prepared and secure before being transferred.

With AMC on AWS Clean Rooms, hashing occurs automatically within AWS Clean Room as part of the collaboration process, ensuring that no PII data leaves its origin environment. Additionally, there are standardized hashing processes in place to ensure data can be matched across anonymized records without revealing the PII.

Stronger Aggregation Controls

Brands using AMC on AWS Clean Rooms for data collaboration not only have to adhere to AMCโ€™s aggregation thresholds, where 2 or more (anonymous) users have to do the SAME action, but can also layer on their own data usage and aggregation rules as to what can be queried.

For example, a brand could say that you can only see aggregated results where 5 or more (anonymous) users have done the SAME action. This enables brands who may have more stringent compliance requirements to determine how their first-party data is collaborated with.

Multi-party Collaboration and Maximum Interoperability via the Gigi Data Model

During the AMC on AWS Clean Rooms setup process, we build the Gigi data model within the AWS S3 bucket using Apache Iceberg table format. This allows us to structure data across multiple sources in a standardized manner and ensure insights are extracted without discrepancies or inconsistencies.

Additionally, this allows brands to collaborate their first-party data with other cloud environments or multi-party sources that also use AWS and Apache Iceberg table formatting. And provides cross-channel insights across a vast set of data sources without any raw data exchange needed.

What You Missed ๐Ÿ‘€

Thanks for reading Cherry Picked, and weโ€™ll see you next month!

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