What is Amazon's DSP And What Can It Do For You?

What is Amazon's DSP And What Can It Do For You?

There are currently 2.5 million sellers on Amazon. It’s hard work to stand out. Granted, you’re not competing with all of them--- but it still pays to make sure you’re blazing trails in your own niche.

Luckily, Amazon wants you to do just that. You can do it via your own marketing channels or you can use Amazon’s promotional tools. A powerful example of this is Amazon’s Demand Side Platform.

What is a demand side platform?

A demand side platform or DSP is a software business owners can use to buy mobile, search, and video ads across a variety of channels. Amazon has its own DSP which you can use to bid for ads both on and off Amazon. 

DSPs use programmatic advertising, which refers to not only the buy-and-sell process of ads but also the publishing of ads based on big data and algorithms. Using Amazon’s DSP means getting access to Amazon’s huge pool of consumer data---- and that’s gigantic, considering each month 197 million people visit Amazon to browse for products.

In terms of ad types, Amazon’s DSP is not a one trick pony--- you can choose different kinds of ads depending on what message you’re trying to send to your audience. These include display ads, audio ads, and even video ads.

To launch DSP ads you have to have a substantial capital, so up and coming brands should go for more cost-effective ways to promote their products first. But if you’re an established brand looking to up the ante and reach further, Amazon’s DSP is perfect for you.

Real time bidding VS Programmatic direct

You can purchase ads off DSP in two ways: real time bidding and programmatic direct. 

Real time bidding has to do with automated bidding wars between advertisers who want to reach the same audience. Here, publishers list their available ad space in an inventory for bidding and the highest bidder wins the ad space.

On the other hand, programmatic direct takes on a more straightforward approach. In programmatic direct, you deal directly with the publisher. They lay out which audiences visit their sites and you decide whether those users are the people you want to reach.

Who can you target using Amazon’s DSP?

There are a variety of targeting options available to advertisers that use the DSP. All of which are based from Amazon’s data and analytics on its huge audience.

  1. Behavioral targeting has to do with customer behavior. This includes data about their browsing activity like web searches, frequently visited sites, and purchase history.
  2. Contextual targeting refers to relevant ads shown while people use the Internet.
  3. Lifestyle targeting targets people who have very specific buying patterns, such as buying art materials or pet related items.
  4. Remarketing focuses on consumers that have already engaged with your brand on Amazon.
  5. Audience Look alike’s focal point is consumers whose browsing and purchasing behavior are similar to your established customers.
  6. Advertiser Audiences uses your own data to target consumers that have already interacted with your brand.

Choose a targeting strategy based on your brand goals. Ask yourself who you want to target and how can they fast track the achievement of your goals. Who you target can greatly affect the engagement your ads will get, which in turn will influence conversion rates and sales.

Who can manage your DSP?

Handling a DSP takes tough and meticulous work. You might choose to forgo this responsibility to take on more demanding roles in your business. Luckily you get two options in managing your DSP: self-service and the managed service.

Self-service means exactly what it looks like: you or your marketing agency take on the role of DSP manager. Responsibilities include daily monitoring, reporting, and optimization. On the other hand, the managed service shifts the responsibility to Amazon’s own employees for a price. This means you hand over the reins to Amazon and task them to find the best ad spaces for you.

Amazon DSP VS Amazon Ad Console

Amazon is always innovating to help make it easier for business owners to sell their products. That’s why Amazon has conceived a wide range of promotional options for sellers to peruse. This includes Amazon DSP and Amazon Ad Console. But how do they differ? Is one better than the other?

First things first, let’s talk about minimum spend. For Ad Console’s Sponsored Display ads, there’s no minimum spend required for advertisers. It’s a cost-effective way to promote your products on Amazon. On the other hand, Amazon DSP requires a minimum spend of $35,000 a month to get started when you work with them directly. At Seller Universe, you can start with $10,000 minimum.

Both Amazon DSP and Amazon Ad Console display ads on and off Amazon. But Amazon DSP is available for people not selling on Amazon while the Ad Console is only available to businesses registered on Amazon.

And while both Amazon DSP and Amazon Ad Console advertise outside Amazon, Ad Console only redirects to Amazon product detail pages, hence why you need to be registered on Amazon as a brand. Amazon DSP ads can redirect to off-Amazon sites like your own eCommerce website. This means all Ad Console conversions are done within the Amazon marketplace while Amazon DSP reaches farther than that.

Why use DSP?

As a brand owner, you should always explore new and innovative ways to reap those sales. One of which is to use Amazon’s DSP. You know what it is and how it works. But what does it do for your brand?

Using the DSP boosts your visibility. The platforms available for advertising via the DSP are all visited by many users. When you bid for an ad place, rest assured that you’ll be visible to the audience you target--- especially those who have yet to get introduced to your brand. 

Using the DNP also gives you a ticket to an inventory of premiere ad spaces. These include exclusive access to Amazon-owned sites and apps. You can’t gain that privilege with other DSPs.

Not only that, you have access to powerful targeting options when you use the DSP. Amazon’s DSP is great at focusing on an audience segment. Amazon’s consumer database is filled to the brim with data and analytics about how their consumers behave online and all this data will be at your fingertips when you use Amazon’s DSP.

Lastly, when you use Amazon’s DSP, you’ll be provided by data-driven insights and performance reports before and after your campaigns. You can use this information to drive your brand forward and tweak strategies that aren’t hitting the mark.

DSP as an addition to your marketing roster

All in all, Amazon’s DSP would be a great addition to your marketing efforts. Combined with Sponsored Display ads and Off Amazon promotional campaigns, you’ll surely maximize reach and visibility in all audiences you want to target.

We hope this article was helpful. We tackled a lot of technical terms so if there are concepts still unclear to you, let us know. Here at Seller Universe we’re always happy to help. And if you need help managing future DSP campaigns, we’re glad to step in and do the heavy lifting for you.

Frequently Asked Questions

No FAQs Yet