Want to supercharge your Amazon advertising? Let’s talk about Amazon Demand-Side Platform (DSP). It’s a tool that lets you run display, video, and audio ads on Amazon and across the web.
Amazon DSP helps you reach the right customers with precision targeting. Brands using DSP have seen up to a 20% boost in purchase rates. It’s perfect for retargeting – showing ads to people who already viewed your products but didn’t buy.
Think about showing your ads to your audience not just on Amazon but wherever they are online. DSP makes that possible, and it pays off – advertisers often see 3.5 times their ad spend in returns.
Today, we’ll explore Amazon DSP – how it works, why it’s effective, and how to use it to grow your sales.
In this guide, Ad Badger will talk about:
Amazon Demand-Side Platform (DSP): What Is It?
If you want to expand your advertising reach on and off Amazon, the Amazon Demand-Side Platform (DSP) is a tool you need to know about.
But what exactly is Amazon DSP?
Amazon DSP is a programmatic advertising platform that allows advertisers to buy display, video, and audio ads programmatically, both on Amazon-owned properties and across its network of third-party sites.
Launched in 2012, Amazon DSP provides access to Amazon’s exclusive audiences, which are built from rich shopping and behavioral data. This makes it a unique solution for reaching potential buyers with high precision.
The main benefits of Amazon DSP include advanced targeting options, such as retargeting customers who have interacted with your products or brand, and access to valuable data insights to optimize ad performance.
Unlike other DSPs, Amazon’s platform leverages its vast trove of first-party data to precisely target ads, which is particularly effective in driving higher conversion rates.
Advertisers using Amazon DSP have reported improved campaign performance, with some seeing up to a 20% increase in purchase rates.
Understanding Amazon DSP and Sponsored Ads
Amazon DSP and Sponsored Ads are two key advertising tools on Amazon, but they’re designed for different goals.
Let’s break down what each one does and why it might matter for your business.
What is Amazon DSP?
Amazon DSP is all about reaching a wider audience on and off Amazon. Think of it as a way to show your ads on Amazon and across the web, including other websites and apps.
The big win here is targeting 🏆—you can reach people based on their shopping habits and interests, and even retarget those who have already checked out your products but didn’t buy.
It’s great for brand awareness and retargeting. It usually works on a cost-per-thousand-impressions basis, meaning you pay for every thousand times your ad is shown. Because of its broad reach and more complex setup, it’s typically used by larger brands or those with a bigger advertising budget.
What are Sponsored Ads?
Sponsored Ads are simpler and more focused on driving sales directly on Amazon. These ads show up where shoppers are already searching—like in search results, on product pages, and more.
They’re designed to catch the attention of customers ready to buy.
Sponsored Ads are easy to set up, cost-effective, and work on a cost-per-click basis, so you only pay when someone clicks on your ad. They’re perfect for sellers of all sizes and are especially good for boosting your product’s visibility and sales on Amazon.
To sum it up, if you’re looking to spread your brand message far and wide, Amazon DSP is your go-to.
However, if your main goal is to drive direct sales on Amazon, Sponsored Ads are the way to go. Both have their strengths and using them together can help you cover all bases—from brand awareness to closing the sale.
What Does Amazon DSP Cost?
The cost of using Amazon DSP can vary widely based on your campaign goals, targeting options, and ad formats.
Typically, Amazon DSP operates on a cost-per-thousand-impressions (CPM) model, meaning you pay for every thousand times your ad is shown. The minimum spend requirement usually starts at around $35,000, making it more suitable for brands with larger advertising budgets.
However, this spending includes access to Amazon’s valuable first-party data and advanced targeting capabilities, which can drive a strong return on investment.
Amazon offers a managed service option for smaller budgets, including campaign management and optimization support, but it may come with additional costs.
If you’re considering DSP, it’s important to assess whether your budget aligns with its requirements to make the most of its robust advertising potential.
How to Connect Amazon DSP to Amazon Marketing Cloud for Deeper Insights
If you’re ready to dive deeper into your Amazon DSP data, connecting it to Amazon Marketing Cloud (AMC) ☁️ can provide the granular insights you need to optimize your campaigns.
But how do you get started with this connection?
Before we begin, ensure that you have access to Amazon Marketing Cloud. You’ll need to be enrolled in AMC, which is typically available to advertisers working directly with Amazon or through an approved Amazon Ads partner.
Once you have access, you’ll use AMC’s secure, cloud-based environment to analyze data from multiple sources, including Amazon DSP.
Step-by-Step Guide to Linking Amazon DSP with Amazon Marketing Cloud
- Define data points and set up queries in AMC.
- Connect and automate DSP data integration via AMC API.
- Run detailed reports and analyze DSP performance in AMC.
To connect your DSP data to AMC, you’ll start by setting up queries within the AMC interface. This involves defining the specific data points you want to analyze, such as impressions, clicks, conversions, or audience interactions.
Amazon provides a set of predefined templates and SQL-based query tools to help users extract and analyze the data they need.
You can customize these queries to focus on particular aspects of your DSP campaigns, like cross-device attribution or audience overlap.
Once your queries are set, you can schedule regular data uploads from DSP to AMC. This typically involves working with your Amazon account manager or using the AMC API to automate data integration.
The data is then processed within AMC, where you can run detailed reports beyond what’s available in standard DSP dashboards.
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Understanding Targeting Types in Amazon DSP
Understanding the different targeting options available is crucial to getting the most out of your Amazon DSP campaigns.
Whether your goal is to increase brand awareness, retarget past visitors, or find new customers who resemble your best buyers, Amazon DSP’s targeting capabilities offer the flexibility and depth you need to tailor your advertising strategy effectively.
Audience Targeting
Audience targeting is one of the most powerful tools in Amazon DSP. By tapping into Amazon’s rich first-party data, you can reach audiences based on their shopping behaviors, purchase history, interests, and even recent searches.
For example, you can target users who have recently viewed products in a specific category or those who have a high likelihood of purchasing based on their past behaviors.
This allows you to zero in on users who are already showing interest in products similar to yours, increasing the chances of conversion.
Contextual Targeting
Contextual targeting places your ads alongside relevant content that matches the themes or keywords associated with your product.
For instance, if you’re selling outdoor gear, your ads could appear on articles about hiking or camping. This type of targeting aligns your ads with content that your potential customers are already engaging with, enhancing the relevance of your message and increasing engagement rates.
Demographic Targeting
Demographic targeting allows you to reach audiences based on characteristics like age, gender, income level, and education.
For example, if your product appeals mainly to young adults or a specific gender, you can adjust your targeting settings to focus on those demographics.
Remarketing (Retargeting)
Remarketing is a highly effective strategy for re-engaging users who have previously interacted with your brand but did not make a purchase.
With Amazon DSP, you can set up remarketing campaigns to show ads to users who have viewed your product pages, clicked on your ads, or added items to their cart but didn’t complete the checkout process.
Lookalike Targeting
Lookalike targeting helps you find new potential customers by targeting users who share similar characteristics with your existing audience or past converters.
Amazon DSP analyzes the behaviors and attributes of your current best-performing customers and identifies new audiences that resemble these profiles.
Behavioral Targeting
Behavioral targeting uses data on user activities, such as browsing patterns, purchase behavior, and interactions with ads, to deliver ads that are tailored to the individual’s interests.
For example, if a user frequently browses fitness-related products, Amazon DSP can target them with ads for gym equipment or sportswear.
Device Targeting
With device targeting, you can control which devices your ads appear on, such as desktop, mobile, or tablet. This is especially useful if you know your audience prefers shopping on a specific device or if your ad creative is optimized for a particular screen size.
For example, mobile-friendly ads can be shown specifically on smartphones to enhance the user experience and drive better results.
Geographic Targeting
Geographic targeting allows you to target users based on their location, from broad regions like countries and states to specific areas such as cities or postal codes. This is particularly useful for businesses with physical locations or those running localized promotions.
For example, a restaurant chain can use geographic targeting to promote new menu items to customers within a specific radius of their stores.
So, each targeting type offers unique advantages that, when used strategically, can enhance your advertising efforts, drive better engagement, and ultimately lead to higher conversions and return on ad spend.
Creative Types in Amazon DSP
Choosing the right creative types for your Amazon DSP campaigns is key to capturing your audience’s attention and driving engagement.
Amazon DSP offers a range of creative formats, each designed to serve specific advertising goals—from raising brand awareness to driving direct conversions.
Understanding these creative types will help you tailor your ads to the right context and deliver your message more effectively.
Static Display Ads
Static display ads are the simplest form of creative available on Amazon DSP. They consist of a single image with a headline, body text, and a call-to-action button.
These ads are versatile and can be placed across Amazon’s properties and third-party websites. Static ads are ideal for straightforward messaging and are often used to drive traffic to product detail pages or brand storefronts.
They’re particularly effective when you have a strong visual product image or a clear promotional offer that stands out.
Dynamic Display Ads
Dynamic display ads take personalization to the next level by automatically updating content based on user behavior. These ads can showcase products that a user has recently viewed, similar items, or complementary products.
Dynamic ads are great for retargeting and personalized campaigns, as they leverage real-time data to tailor the ad content to each viewer, enhancing relevance and engagement.
For example, if a user recently browsed a specific type of shoe, dynamic ads can display similar shoe models, encouraging the user to revisit and purchase.
Video Ads
Video ads offer a more engaging format by combining visuals, sound, and motion. These ads can run on Amazon sites, Fire TV, IMDb, and other third-party platforms, making them a powerful tool for storytelling and building brand awareness.
Video ads are particularly effective for demonstrating product features, sharing customer testimonials, or conveying a brand’s lifestyle appeal.
They can be short, attention-grabbing clips or longer, more informative videos, depending on the campaign objectives.
Audio Ads
Audio ads are designed for listeners on Amazon Music’s ad-supported tier and other audio platforms within Amazon’s network.
They allow brands to reach users in a non-visual context, making them perfect for driving brand recall and awareness while users are on the go. Audio ads typically run for 10-30 seconds and include a brief message with a call to action.
They are ideal for brands looking to tap into a growing audience of music and podcast listeners.
Responsive eCommerce Ads
Responsive eCommerce ads are a versatile and adaptive format that adjusts to fit different placements and screen sizes automatically. They are designed to showcase multiple products from your catalog, updating dynamically based on user preferences and inventory.
These ads work well for brands with a broad product range and aim to promote various items within a single ad unit.
They can pull content like product images, prices, and ratings directly from your Amazon listings, making them highly relevant and up-to-date.
Custom Ads
For brands looking to push the creative envelope, Amazon DSP offers custom ad options that can be fully tailored to meet specific campaign needs.
These ads allow for unique formats and interactive elements, such as clickable carousels or immersive experiences. Custom ads are great for brands with the resources to develop bespoke content that stands out from standard formats.
They are often used in high-impact campaigns where the goal is to create a memorable impression and differentiate from competitors.
How to Set Up a Campaign in Amazon DSP
Are you ready to make the most of Amazon DSP but unsure how to set up your first campaign?
With its advanced targeting and expansive reach, Amazon DSP can transform your advertising strategy, but getting started requires a clear, practical approach.
Let’s walk through the setup process to ensure you’re set for success.
Step-by-step guide to setting up your Amazon DSP campaign
Step one: Defining your campaign objective
First, define your campaign objective. Are you looking to build brand awareness, retarget shoppers who visited your product pages, or drive sales for a specific product?
Your objective will dictate every subsequent decision in the setup, from selecting ad formats to choosing the right targeting.
Step two: Selecting inventory and ad formats
Once your objective is set, you’ll need to select your inventory and ad formats.
Amazon DSP provides access to a wide range of inventory across Amazon sites, third-party websites, and apps.
Choose formats that align with your goals—static display ads for straightforward messaging, video ads for engaging storytelling, or dynamic ads for personalized retargeting.
Step three: Setting up targeting
Next, focus on targeting. Amazon DSP excels here, offering options like audience targeting using Amazon’s first-party data, contextual targeting to match ads with relevant content, and retargeting to reach users who’ve interacted with your brand before.
Set up these audience segments within the DSP console, leveraging insights from previous campaigns or Amazon’s data to hone in on your ideal customers.
Step four: Budgeting and bidding
Budgeting and bidding come next. Amazon DSP typically operates on a CPM (cost per thousand impressions) model.
Set a realistic budget that matches your goals—if you’re aiming for high visibility, you may need a higher budget and bids.
Choose between automated or manual bidding strategies based on your comfort level; automated bidding can save time but manual control lets you fine-tune bids for specific segments.
Step five: Developing сreatives
Developing your creatives is crucial. Make sure your ads are tailored to your objectives—clear, compelling visuals and messaging are key.
For dynamic ads, ensure your product feed is correctly integrated, as these ads automatically display relevant products based on user behavior.
Upload your creatives into DSP, test them to ensure they render correctly, and preview placements before launching.
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Summary
Amazon DSP (Demand-Side Platform) is an advertising tool that allows you to run display, video, and audio ads both on Amazon and across a wide network of other websites and apps. It uses Amazon’s first-party data to target specific audiences based on their shopping behaviors, interests, and demographics, making your ads highly relevant.
With Amazon DSP, you can create various ad formats like static and dynamic display ads, video ads, and audio ads. It’s great for reaching new customers, retargeting past visitors, and boosting brand awareness. You can manage campaigns yourself or use Amazon’s managed service for extra support.
Overall, Amazon DSP helps you effectively reach the right audience, optimize your ads, and maximize your advertising results.
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