As much as we’d all like to hope for record-breaking conversion rates, the average conversion rate for an Amazon listing is much lower than sellers expect for any given product, at just 13%. So how can you make sure you surpass that average entirely? The key is DSP advertising.
What Is DSP Advertising?
Demand-side platform (DSP) advertising is what allows companies to make the most of Amazon’s extensive consumer data. The system allows you to advertise to customers based on browsing and purchasing habits, and facilitates nearly every type of digital ad: display, search, video, audio, and mobile ads.
What’s more, DSP advertising allows for retargeting ads, which consumers encounter outside the platform. It’s the best way to maximize your reach, while targeting a very narrow market segment.
How Can DSP Advertising Maximize Your Conversions?
DSP advertising makes increasing conversions easier on two fronts: programmatic advertising and lead retargeting.
With DSP, you’ll never miss out on a bid you could have won. Programmatic advertising uses algorithms to actively bid on ad space in real-time. This lets your marketing team input your target audience and budget while your DSP software takes care of buying and placing the ads.
DSP advertising remembers who viewed your e-commerce page or product listing, allowing it to retarget those leads with your ads. This is a proven practice—one study found consumers are 70% more likely to convert if you use retargeting ads.
Amazon DSP is the optimal tool for improving conversions on your Amazon store.
Amazon DSP works how other demand-side platforms work, and it has the added benefit of Amazon’s user data. With this information, Amazon DSP can extract a lead’s shopper history and behavior to target and retarget potential customers with relevant ads for new and related products.
4 Ways to Use Amazon DSP to Maximize Your Conversions
How can you improve your conversion rates with DSP advertising? Here are four things you can do today to improve your strategy.
- Promote Your Best Products
While it can seem like promoting under-performing products could boost conversion rates, a lack of exposure might not be the reason those products aren’t selling.
Focus your Amazon DSP strategies on products that perform well. Make sure those listings have high-quality images and well-written descriptions before promoting them, too—this helps ensure your product still performs well after a lead clicks on the ad.
- Target Amazon Prime Members
While non-Prime customers have an average conversion rate of 13%, Prime customers convert 74% of the time. To better target Amazon Prime customers, your products need to be eligible for Prime. You can do this by using Fulfillment by Amazon, Seller Fulfilled Prime, or Vendor Central.
- Use A/B Testing
A/B testing is a foolproof way to see how slight tweaks to your ads can improve your conversions. With rigorous testing, you can curate display ads that are optimized for better click-through rates, thus improving your chance of conversions.
- Keep Targeting New Customers
A recent study found that repeat customers are nine times more likely to convert than a new lead. Even after you’ve successfully converted a new lead, retarget them with your other products. If they have a great experience with their first and subsequent purchases, you could create some serious customer loyalty.
Better Manage Your Conversion Rates with Buy Box Experts
Managing and controlling your conversion rates is a hard task for anyone, even if you know what to look for. Having a partner like Buy Box Experts can help alleviate some of that responsibility in your marketing efforts. By leaning on us, you can focus on more important tasks like managing your inventory or planning new product launches.