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Expanding your advertising mix through Amazon DSP

Kennedell Amoo-Gottfried
April 19, 2022
September 16, 2022
Expanding your advertising mix through Amazon DSP

Most tools that you can use on Amazon are designed to maximizing your prospects to sell on Amazon, and are usually reserved for Amazon sellers and vendors. This is not the case with Amazon DSP. 

Amazon’s DSP, or Demand Side Platform, is a tool that provides automated and centralized ad space buying capabilities from multiple sources, using programmatic advertising to place ads throughout Amazon, but also outside of it. 

Where most Amazon tools limit themselves to Amazon’s own website, with DSP you can launch your ads to display on a range of other platforms including social media sites, mobile apps, online video channels and other websites. DSP can be used both by advertisers looking to sell products on Amazon and to advertising who are selling outside Amazon. Some of the biggest consumer brands in the world, like Samsung and Casio, are using DSP to reach new audiences.  

Other than Amazon itself or on Amazon devices like Fire TV, the places where you may place a DSP ad are on Amazon owned platforms like IMDb, Twitch, Audible, Zappos, Box Office Mojo, Goodreads and others, as well as across the web. 

This is not a small-budget solution. If you are going the DSP route, it’s because you’ve got some serious marketing budget that you want to make the most of at a large scale. Typically, DSP is an option for sellers and brands that have private label products that they also sell elsewhere or via their own website. 

Since it is not just active on Amazon’s platform, where viewers are likely already thinking about making a purchase, DSP takes a more full-funnel approach than other Amazon advertising products, meaning you are trying to get people on board earlier than usual. 

What good does it do?

DSP offers a pretty robust set of benefits to any advertiser - these include: 

  • Targeting:

          DSP gives you a massive amount of flexibility to target by criteria not available on Sponsored Products, Brands or Display. You can target based on demographics,           behavior geography and even date or time. 

          Geographically you can go after shoppers in a specific market and even in specific zip codes. You can choose precise ad frequencies per unique visitors, or specify           if you want the ads on mobile or desktop platforms. You also choose domains you want to show on, or those you want to exclude. 

          DSP also offers dynamic targeting, which has the advantage of shifting along with market events and conditions that are not in your control. Automatic shifts can           take a number of forms, such as moving an ad placement to increase impressions, moving ad domains entirely and more.

  • Customizable audiences:

          Somewhat related to the above targeting benefit, DSP lets you build specific audience pots for the people you’re trying to reach. For example, if you’re selling a           kitchen appliance and you want to reach people that just bought a pressure cooker, or a spatula, or a microwave, throw those ASINs in there and build an audience.           If you want to poach some shoppers from competitors, you can build audiences based on that, too.

  • Retargeting:

          This is, of course, the main function of Sponsored Displays, but DSP has advantages in that you can use ASIN and pixel retargeting to follow the customers and           target them again.  

          It allows you to target customers that previously bought or visited from your store with cross-selling opportunities, bolster brand awareness by re-engaging with           former visitors and - if the product is something they need to buy again - remind them of when they need to do so. 

         Another advantage that DSP has over other remarketing tools like Amazon Sponsored Display, for example, is that there is limited advertising real estate on          Amazon itself. If you are bidding through Sponsored Display, your campaign will be coming up against roadblocks when advertising inventory - or ad space on a          given website - begins to run out or get too competitive. 

  • Insight:

          Even beyond conversion itself, the breadth of options provided by DSP let you learn a lot about your potential customer base and how they are segmented, which           can then be leveraged to increase brand awareness and generate prospects.

Do I have to do it myself?

You have two main ways to carry out a DSP campaign: 

  • Managed by Amazon: 

         This may be the preferred option for sellers that don’t have that much experience running programmatic advertising campaigns. Amazon will directly manage these          and provide consultation and advice . It doesn’t come cheap, though, with a minimum ad spend of $35,000 in the US, but can vary from country to country

  • Managed self-service: 

          It says self-service, but really this is something you can only access through third party agencies, though there are no fees like the ones you would see on a           managed campaign. The upside is that users will have a larger level of control over the campaign.

DSP campaigns will allow flexibility for you to either create your own ads or use templates like e-commerce creatives, that take images provided by you or taken from product detail page and optimize them for best performance. A similar function is also available for video content. 

Amazon claims e-commerce creatives reduces the average build time of an ad by around 90%. 

Amazon also provides after-the-fact measurement tools that include metrics like detail page view rate, add to list counters and new-to-brand metrics. It will also give you a view into frequency, viewability and reach statistics so you can keep track of how successful the campaign was. 

Need help?


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