Unsure about your next major step in your Amazon business?
If you think you’ve maximized all opportunities in Amazon advertising, think again. There’s one side of Amazon Advertising not many sellers utilize or even know about. In this article, we’ll talk about everything you need to know about Amazon’s Demand-Side Platform!
What is Amazon’s Demand-Side Platform?
Amazon’s Demand-Side Platform or DSP enables advertisers to promote their ads outside of Amazon as an impression-based display marketing platform. With DSP, advertisers also get exclusive audiences across Amazon-owned sites, like IMDB and other leading publishers’ sites.
In essence, Amazon DSP is a platform that allows sellers to programmatically buy ads to connect with new and existing audiences on and off Amazon, allowing them to promote products, services, or brands essentially all over the internet.
What is the difference between Amazon Display Ads and DSP?
Since they are available for advertisers within and beyond Amazon, aren’t they just the same? Honestly, it’s hard to tell at first glance, but they certainly have significant differences. And that’s why understanding the functions of the different types of Amazon ads gives you an upper hand in improving your advertising strategies.
Aside from the difference in cost, targeting is another key distinction. While Sponsored Display Ads help promote brand awareness as ads may appear outside the Amazon marketplace, all traffic will still take audiences back to your Amazon listings.
Much like Sponsored Ads, DSP is a platform where advertisers can boost brand awareness in and outside of Amazon. However, with DSP, advertisers have more control over product targeting. If you have brands that you don’t sell on Amazon, you can use DSP to reach a larger audience. Unlike Sponsored ads, advertising on the Demand-Side Platform provides you the option of where you can send traffic to either your Amazon product listing or to out-of-Amazon websites. Moreover, Sponsored Display Ads have limited placements compared to Amazon DSP.
Why should I invest in Amazon DSP?
One of the best things about the Demand-Side Platform is that you don’t necessarily need to be an Amazon seller to use it. When properly utilized, Amazon DSP ads can be a powerful tool in scaling brands on or off Amazon.
Amazon DSP is for you if you want to:
a. Increase brand discoverability
Advertising is all about boosting discoverability and accelerating growth. With DSP’s in-depth customization for ads, you can reach new potential customers on and off Amazon who are actively browsing related products and have the intent to purchase. This platform gives you better control over where ads are shown with a more targeted approach through audience layering.
b. Connect with your target audience
Through relevant dynamic creative ads, you can hyper-target and categorize big potential customers based on factors such as purchase intent, recency, and consideration period. Since DSP allows you to reach buyers virtually anywhere, you can reach a more extensive and relevant audience, increasing your brand recognition and demonstrating a higher ROI.
c. Reach the right audiences
If your goal is to widen your market reach significantly, Amazon DSP is the way to go. Some Amazon sellers make a mistake when advertising their products because they are not targeting the right audience. When you run display ads on and off Amazon, you can reach buyers who are in the process of shopping and target relevant websites where you can gain audiences who have a high chance of buying your products or services.
d. No more wasted ad impressions
If you’ve already been advertising on Amazon and want to scale your business to greater heights, DSP is your next BIG step. Learn about your brand’s target demographic using Amazon’s Audience insights to gain in-depth insights about your audience and use that information to improve your strategies and overall plan. This data will help you in your bid revisions and raise the chances of landing your targeted ad placements and audience segments.
Am I eligible to join DSP?
DSP may be a great way to scale your growing business, but it’s not as simple as it sounds. Amazon’s DSP program is only available through a service provider like our managed services team or directly through Amazon’s own managed service.
Advertisers have two options for running Amazon DSP automation:
- Agency self-service
Run and managed by an advertising agency like Amazing Marketing Co. that has access to this platform. This self-service option is controlled by you and the agency you hire. However, the ad buying process is programmatic. Once launched, the marketing agency will provide the day-to-day monitoring, reporting, and optimization of your campaigns. To optimize your ads, the agency will have to perform tests on creative (both copy & visuals) sites where your ads are served and the audiences of demographics you’re targeting.
- Amazon managed service
Amazon’s managed services team fully controls it. This is an Amazon managed-service option and is solely automated. While less work is required from your side, this option requires a minimum ad spend of $35,000 – $50,000 to get started.
The great news is although it’s an Amazon-owned platform, it’s not exclusively for Amazon sellers. So, no matter where you’re selling products, Amazon DSP may be for you.
Get started with Amazon DSP Advertising now!
The largest B2C platform today, Amazon offers exciting opportunities to brand owners, whether big or small. But the promise of e-commerce success also comes with enormous challenges. As a seller, it’s necessary to maximize marketing and advertising strategies that can help you flourish through the Amazon algorithm and conquer the competition.
Not sure where to start? Reach out to us to learn more!
