Amazon DSP is a demand-side platform that allows you to programmatically buy ads to reach new and existing audiences anywhere they spend their time.
Amazon DSP is a demand-side platform that allows you to manage and programmatically buy ads both on and off Amazon. It also provides access to Amazon’s exclusive audience targeting data, which helps you reach customers across various platforms.
Beyond understanding what Amazon DSP is, it’s important to know the following:
- How DSP targets your ideal customers
- The types of ads compatible with this demand-side platform
- How Amazon DSP ads differ from sponsored display ads available on Amazon AMS
- When and why to use this advertising option
- How to integrate Amazon DSP into your overall advertising strategy
How Does Amazon DSP Work for Audience Targeting?
Amazon uses its audience-identifying algorithm to target and retarget potential customers interested in your product. For instance, when someone searches for your product, the algorithm remembers their purchasing behavior and displays ads for your product.
However, this is just one way Amazon DSP can target your audience. In total, there are six unique targeting options available:
- Behavioral: This option tracks a customer’s buying intent, searches, and clicks from the past 30 days.
- Contextual: Your audience is segmented based on their current search queries.
- Lifestyle: The ads appear for users who have shown search or purchase behaviors that belong to a certain lifestyle.
- Re-marketing: To re-engage shoppers, ads appear for customers who have searched for, viewed, or bought your products or similar items.
- Advertiser Audiences: Amazon can also use your brand’s data, such as email lists or webpages with tracking pixels, to target your audience.
- Audience Lookalike: People with shopping behaviors similar to your customers will see your ads.
What Kind of Ads Work with Amazon DSP?
Amazon DSP ads has the three following categories:
Amazon Display Ads: These are banner ads visible on websites, social media, and other digital platforms. They encourage users to click and visit a landing or product page to learn more about your product.
These ads usually appear in the side margins of web pages or search engine results. If customers link their accounts across devices, your ads can reach them on all their platforms.
Amazon Video Ads: Amazon video ads are short branded clips that showcase your product’s key features. These videos play automatically when at least half of the video is visible on screen.
You can find Amazon video ads on all Amazon websites, both desktop and mobile versions on home pages and product detail pages.
Amazon Audio Ads: Amazon audio ads help you connect with customers who listen to Amazon Music channels. This maintains your brand presence even when customers aren’t looking at screens. Audio ads are currently in beta testing, so they’re not widely available yet.
Your audio ads will play on the free version of Amazon Music and Alexa-enabled devices, such as Amazon Echo and Fire TV.
Amazon DSP vs. Sponsored Display
Amazon DSP’s offerings may seem similar to sponsored display ads, which is Amazon’s advertising solution for distributing ads both on and off Amazon. The main similarity is that both tools help you advertise beyond Amazon and are self-service options.
However, there are key differences between both of them. Sponsored Display ads use a pay-per-click (PPC) model while DSP uses a Display or cost-per-mille (CPM) model, where you pay based on the number of impressions your ad receives (how many times the ad appears on a screen).
Amazon DSP also offers more comprehensive advertising options than Sponsored Display. It is like an improved version of Sponsored Display ads, as it has more capabilities such as video and audio advertising.
Why Use Amazon DSP?
With Amazon DSP, you get all the tools found in other DSP services, plus the added benefit of Amazon’s data. This grants you access to exclusive audiences and the ability to advertise on Amazon-owned platforms like IMDb and Prime Video, as well as across the web.
Who can use Amazon DSP?
Amazon DSP is an excellent option for brands selling products on Amazon. It’s also available to brands that don’t sell on Amazon but still want to leverage Amazon Audiences through Amazon DSP.
When Is Amazon DSP a Good Fit?
Amazon DSP is ideal for any business looking to grow its reach and tap into Amazon’s audience. It will also depend on each brand’s goals.
Amazon DSP for Large Brands
If customers can’t see what you’re selling even the best product won’t succeed. This was the big advantage Amazon offered when they first welcomed third-party sellers and launched the FBA program: They brought a large, consistent flow of traffic to the table.
Amazon DSP isn’t suitable for new sellers and smaller brands on Amazon. However, it’s a valuable addition for brands that already have a substantial ad budget and are aiming to continue growing and maintaining year-over-year growth. It allows them to harness the power of Amazon’s first-party shopper data to attract new customers and keep existing ones, tapping into the vast pool of shoppers beyond Amazon’s marketplace walls across the internet.
Not sure where to start? Our expert team can help you choose and implement the perfect DSP strategy to boost your brand awareness and drive sales. Contact us to get started!
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