It may be hard to believe, but Amazon DSP advertising isn’t just for Amazon-owned channels. Think about the powerhouse that Amazon is in general, and then think about the data behind their channels. That audience data represents behaviors and desires across all channels—and you can use that to create targeted campaigns for any advertising channel. What makes Amazon DSP advertising so vital to your advertising strategy is that it helps you optimize your targeting strategies across the web. That’s a powerful tool. We’re going to share exactly how Amazon DSP works and how you can get started using Amazon’s rich data-resources today.
Amazon DSP is Amazon’s demand-side platform that lets you manage and programmatically buy ads both on and off of Amazon. This tool also gives you access to the audience targeting data that is exclusive to Amazon, helping you reach customers across many platforms.
Amazon offers an entire toolkit of advertising platforms so you can better connect with your audience. Amazon DSP ads fall into three different categories: display, video, and audio.
Display ads are banner ads you see on websites, social media, and other digital media. These ads encourage users to click and navigate to a landing or product page where they can learn more about your product.
Most often, customers will see these ads on the side margins of a web page or in their search engine. If the customer links their account across different devices, they can see your ads on all their devices.
Most Amazon video ads are short, branded videos that give customers a glimpse at what your product has to offer. These videos will play automatically as long as half of the video is in view on the screen.
Amazon video ads will be seen on all Amazon websites, both on desktop and mobile. This applies to both homepages and product detail pages.
Amazon Audio Ads
Amazon audio ads let you reach customers who listen to Amazon Music channels. This helps you maintain your connection with your audience even when they’re not on their screens. Audio ads are still in the beta version, so they are not as widely available.
Your audio ads will play on the free Amazon Music, as well as Alexa-enabled devices, like Amazon Echo and Fire TV.
The services Amazon DSP offers may sound similar to sponsored display ads, which is the Amazon advertising solution that distributes ads to customers both on and off of Amazon. The main similarity between the two tools is that they both help you advertise outside of Amazon and are self-service tools.
There are also plenty of key differences between Amazon DSP advertising and display ads. For example, sponsored display ads are PPC models. DSP is a Display or CPM model, meaning that you pay for the number of impressions your ad makes (or how many times it renders on a screen).
Amazon DSP also does more for your advertising than sponsored display. Think of it as an extension of what’s offered with sponsored display ads, since it also encompasses video and audio advertising.
Amazon DSP is not restricted by whether or not you sell on Amazon, but there are best practices to consider.
For example, if you choose to use Amazon DSP through an Amazon account executive, they require a $50,000 minimum investment. You’ll also be relatively limited in how you can spend that money.
But going through Amazon to access your DSP isn’t your only option. Specialized agencies, like Buy Box Experts, have garnered a lot of attention from both vendors and Amazon with how they approach DSP differently.
With Buy Box Experts on your side, this is what you can expect:
Amazon DSP is great for any company that wants to expand its reach and take advantage of Amazon’s audience. Of course, that encompasses the goals of a lot of companies—who wouldn’t want access to Amazon’s data?
To better illustrate the utility of Amazon DSP, consider the following examples:
When you first open your Amazon shop, you’re putting yourself up against fierce competition. And you need to find a way to outshine veteran vendors and name-brand products quickly if you want to stay in business. That’s where an aggressive advertising strategy with DSP can help.
After you’ve established a modest base of customers and have a few positive reviews in tow, you can use Amazon DSP to further raise brand awareness. Potential customers will start to notice you both on and off of Amazon with display ads and sponsored product placements. And as you raise awareness, you’ll see your sales increase too.
If you’d like to start using Amazon DSP you have two options:
Have Amazon manage your DSP with a $50k minimum budget with additional line item minimums.
So, if you want more control of your advertising dollars to target your audiences while spending less overall, Buy Box Experts is the clear path to victory.
Sign up for a free analysis to learn how you can maximize your Amazon advertising DSP opportunities.
Your ACoS could decrease when you utilize Amazon DSP. However, focusing too much on reducing your ACoS could be hurting the growth of your brand —oftentimes, it will cause more harm than good.
For more on ACoS, read our article,
For most brands, we recommend a $5K monthly budget for Sponsored Advertising (for products sold on Amazon). If you are an Amazon seller ready to expand into DSP (or are a non-endemic advertiser whose only option is DSP) we recommend $10K/month to properly leverage the platform.
No. Because Amazon is the number one marketplace in the U.S and attracts a wide variety of consumers, there are ways we can leverage their shopper data for almost any industry, whether or not you sell on Amazon.
There are a number of reports available that measure several KPIs useful for tracking progress toward advertising goals. Buy Box Experts uses advanced software to organize and visualize that data and watch trends over time, so you understand what it all means, and how to act on it.
Amazon has doubled down on its advertising business the past few years. Paid placements on the marketplace have increased exponentially and often all “above-the-fold” search results are paid placements. Your competitors are certainly advertising both in search results and on your product pages and, if you are not, your market share will erode over time. If your goals include growing your Amazon business, advertising is a must.
Done well, and when coupled with listing conversion rate optimization, effective advertising can dramatically increase traffic and conversions. Beyond that, a lot of performance metrics on the platform depend on advertising, and it’s difficult to succeed in, say, SEO for instance, without a complimentary ad campaign.
99% of brands are leaking money on Amazon.