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Dynamic Pricing Articles

Find out everything you need to know about dynamic pricing and how it can help you increase sales.

AMC Cohorts
Amazon Fulfillment

Using AMC Cohorts to Calibrate Frequency Caps in Amazon DSP

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Frequently asked questions

Dynamic pricing is the practice of adjusting prices for products or services in real-time based on factors such as demand, competition, and market conditions.

Dynamic pricing maximizes revenue, maintains competitiveness, optimizes inventory, and enhances customer satisfaction by offering tailored pricing.

Implementing dynamic pricing involves collecting and analyzing data, developing a pricing strategy, leveraging technology for automation, and continuously monitoring and optimizing pricing strategies.

Dynamic Pricing can offer significant advantages in maximizing revenue and staying competitive on the Amazon marketplace, though it's essential for businesses to assess their specific market conditions and customer dynamics to determine the potential impact.

Businesses ensure fairness and transparency by clearly communicating pricing policies and factors influencing pricing decisions to customers, fostering trust and a positive shopping experience.

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AMC Cohorts

Using AMC Cohorts to Calibrate Frequency Caps in Amazon DSP

When you’re running Amazon DSP campaigns, getting your frequency cap right can make or break performance. Show your ads too few times, and you’ll miss conversions. Show them too often, and you’ll burn budget while turning off potential customers.

That’s where Amazon Marketing Cloud (AMC) comes in. By using AMC cohorts, advertisers can finally stop guessing...and start setting frequency caps based on real shopper behavior.

Want to see how brands are already putting these strategies into action?

Check out our Success Stories to learn how Trellis helps clients grow profitably with smarter automation and insight-driven advertising.

Read more: Momofuku Serves Up Smarter Growth with Audience Builder +

Key Insights

  • Find the balance between exposure and efficiency. Most conversions in Amazon DSP occur within the first 10–18 impressions, making frequency caps critical to protecting spend and avoiding ad fatigue.
  • AMC cohorts unlock actionable insights. By grouping shoppers by exposure level, behavior, or purchase stage, you can identify when and how frequency affects conversion performance.
  • Data + automation drives better results. Combining AMC analysis with Trellis’s AI-powered advertising automation helps brands continuously optimize their campaigns for higher ROAS and sustainable growth.

Why Do Frequency Caps Matter in Amazon DSP?

A frequency cap limits how many times a single shopper sees your ad over a set period. It’s one of the simplest tools in DSP (and one of the most powerful).

Without a proper cap, you risk:

  • Ad fatigue: The same person sees your ad too many times and tunes it out.
  • Wasted spend: Extra impressions drive cost but don’t move conversions.
  • Brand irritation: Overexposure can actually reduce purchase intent.

On the other hand, capping too low might mean you don’t build enough brand recall to convert. The key is to find the balance, the sweet spot where reach meets relevance.

Recent analyses from leading DSP agencies show that most conversions happen within the first 10–18 impressions. Beyond that, conversion rates often plateau or even drop. But the ideal number isn’t universal. It depends on your audience, your funnel stage, and your creative strategy, which is why AMC cohort data is so valuable.

What is the Role of AMC in Modern Amazon Advertising?

Amazon Marketing Cloud is a privacy-safe, analytics environment where advertisers can measure performance across their full funnel, from awareness to purchase.

With AMC, you can:

  • Connect data across DSP, Sponsored Products, Sponsored Brands, and more.
  • See event-level insights (like ad views, clicks, and purchases).
  • Build custom audiences using SQL-based queries.

Read more: Building Full-Funnel Amazon PPC with Sponsored Brands Video + DSP Overlays

In short: AMC gives advertisers visibility into the entire shopper journey, not just what happens after a click.

This data lets you answer questions like:

  • How many times did a shopper see an ad before they bought?
  • Which mix of ad types drove the most conversions?
  • Where does performance start to drop off?

When you use these insights to fine-tune frequency, you move from educated guessing to data-backed precision.

What Do AMC Cohorts Reveal About Shopper Behavior?

AMC cohorts group shoppers based on shared behaviors, like how many ads they’ve seen, how long ago they last purchased, or whether they’re new to your brand.

This segmentation helps advertisers understand how different audiences respond to varying levels of exposure.

For example:

  • A new-to-brand cohort might convert after 4–6 impressions.
  • A repeat purchaser cohort may only need one reminder to buy again.
  • A high-exposure cohort might show strong engagement at first, then fatigue.

Example Cohort Analysis

Let’s say you run a DSP campaign with three exposure groups:

  • Shoppers who saw your ad 1–5 times
  • Shoppers who saw it 6–10 times
  • Shoppers who saw it 11+ times

You notice that conversion rates spike at 5 impressions, flatten at 8, and decline after 10. That tells you your optimal cap is around 8 impressions per week, enough to stay top of mind without overspending.

Key Metrics to Monitor

  • CTR (Click-Through Rate): Indicates engagement per impression.
  • Conversion Rate: Measures how often engagement turns into purchase.
  • ACoS (Advertising Cost of Sale): Tracks efficiency across cohorts.
  • New-to-Brand Rate: Helps identify when higher frequency builds long-term loyalty.

Common Missteps

  • Relying only on surface metrics like CTR.
  • Ignoring recency (time since last ad view).
  • Applying one frequency cap to all audiences.

Ready to put data into action?

Try our PPC ACoS Calculator to instantly measure your advertising efficiency and identify where frequency optimization can improve your return.

How to Calibrate Frequency Caps Using AMC Cohort Data

Once you’ve built your cohorts, here’s how to turn those insights into smarter DSP settings:

Build Cohorts in AMC

Use behavioral filters such as exposure count, funnel stage, and purchase activity.

Example: Users who saw a Sponsored Display ad ≥5 times in the past 14 days.

Analyze Conversion Lift

Compare conversion rates across cohorts with different impression counts.
Identify the point where incremental conversions begin to slow.

Find the Fatigue Point

Plot conversion rate vs. impressions. When the curve flattens, you’ve hit the saturation point.

Set Frequency Caps in DSP

Translate your findings into caps (e.g., 8 per user per week).
Test different caps for different funnel stages: awareness vs. remarketing.

Monitor and Adjust Regularly

Consumer behavior changes seasonally. Re-run AMC analyses every 30–60 days to recalibrate.

Best Practices for Smarter Frequency Management

Here are a few tested tactics for keeping your campaigns efficient and effective:

  • Segment by funnel stage: Awareness campaigns can handle higher frequency; retargeting usually needs less.
  • Refresh creative often: Avoid banner blindness and keep engagement high.
  • Use smaller test windows: Start with 7–14 days before scaling to longer time frames.
  • Combine frequency analysis with creative testing: Sometimes fatigue stems from repetitive messaging, not impressions.
  • Keep learning: AMC insights evolve as you add new campaigns and data.

Read more: How To Create An Amazon Ads Dashboard (With Examples)
Read more: DSP Audiences for Retail: Views, Purchases, and In-Market
Read more: How to Create Seller SKU on Amazon?

How Trellis Can Help With Frequency Optimization in Amazon DSP

Trellis helps brands go beyond surface-level metrics to truly understand how ad frequency affects performance. By combining Amazon Marketing Cloud (AMC) data with Trellis’s AI-driven automation, advertisers can:

  • Identify saturation points and conversion plateaus using AMC cohort analysis.
  • Automatically adjust DSP frequency caps to align with real shopper behavior.
  • Visualize performance trends in easy-to-read dashboards for quick decisions.
  • Integrate data across Amazon and Walmart to maintain consistent, profitable ad delivery.

This blend of AI Precision + Human Intuition ensures your ads reach the right audience, the right number of times...without wasting spend.

Ready to turn insights into profit? Book a demo!

In Summary

Using AMC cohorts to calibrate frequency caps transforms Amazon DSP from guesswork into a precision tool for growth. By analyzing how shoppers respond to different ad exposures, brands can find their ideal frequency, prevent fatigue, and maximize return on every impression.

With Trellis, you can take this one step further: automating frequency adjustments, visualizing performance trends, and scaling campaigns with AI-powered efficiency. When your ads reach the right audience at the right frequency, profitability naturally follows.

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