Are You Still Using DSP Like It’s 2023? With Pat Petriello of Acadia - Episode 403

Ecommerce Braintrust

🎙️Interview With Pat Petriello of Acadia

DESCRIPTION

Welcome to The Ecommerce Braintrust podcast, brought to you by Julie Spear, Head of Retail Marketplace Services, and Jordan Ripley, Director of Retail Operations.

Today, we’re excited to welcome back Pat Petriello, our Director of Retail Marketplace Strategy, for a deep dive into Amazon DSP.

We’ll explore how to know when it’s the right time to invest in DSP if it hasn’t yet been part of your core strategy, and what the journey looks like for brands already deep in the DSP ecosystem as they move toward greater maturity and impact.

“Long gone are the days when somebody shows up and does discovery, research, consideration, conversion, all in one session, all in one platform with really nice neat attribution for us marketers to be able to measure.”

Pat Petriello

KEY TAKEAWAYS

In this episode, Julie, Jordan, and Pat discuss:

• The 95/5 Rule Recap: Pat explains that at any given time, only 5% of shoppers are actively in-market for a product, while 95% are out-of-market. Most brands focus their budgets on that competitive 5%, risking long-term growth and getting stuck in "ROAS jail" instead of building lasting brand demand.

• Why DSP Matters Now: Three main dynamics are accelerating DSP’s importance:

  • A more competitive market forcing brands beyond search ads for growth.

  • Fragmented, non-linear shopper journeys requiring brands to reach consumers across various platforms and moments.

  • A rapid pace of development in DSP’s features and capabilities, now offering more robust audience targeting, premium inventory (like streaming TV), and richer campaign optimization tools.

• Rethinking DSP Budgets: Many brands default to moving funds from search to DSP, but the team argues that this is a false dichotomy. Instead, DSP should be evaluated against all upper- and mid-funnel brand-building activities, as it’s often more measurable and incremental than legacy brand media channels.

• How Brands Can Approach DSP: Pat outlines a practical progression:

  • “Foundational” DSP: Focuses on lower-funnel tactics like retargeting and cart abandonment.

  • “Intermediate” DSP: Moves into brand awareness and consideration, leveraging tools like AMC (Amazon Marketing Cloud).

  • “Advanced” DSP: Uses innovative functionalities like streaming TV, AMC lookalike audiences, and sophisticated audience targeting for incrementality and organic growth.

• Measurement and Justifying Investment: How success with DSP should be measured beyond immediate ROAS, stressing KPIs like new-to-brand customer acquisition, share of voice, branded search growth, and true incrementality.

• What’s Hot in DSP: Pat’s personal “hype meter” is highest for premium streaming TV inventory, OLV (online video) pulsing, AMC-powered lookalikes, advanced conversion path reporting, and detailed analysis of entry-point ASINs—showing brands can start simple and scale up to advanced tactics.

• Actionable Advice: Brands new to DSP are encouraged to begin even with basic tactics, while those already running foundational campaigns should explore more advanced features to capture future growth and brand loyalty.