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Amazon Advertising

Understanding Amazon DSP Advertising in 2024.

Reading Time: 5 minutes

Amazon DSP, or Amazon Demand-Side Platform, is an Amazon advertising solution that allows sellers to reach potential customers and increase brand visibility on and off Amazon. By utilising DSP, sellers can take advantage of the data and insights provided by Amazon to target specific audiences and optimise their advertising campaigns.  

In this blog, we will explore the concept of DSP and how it can transform your advertising strategy. We will discuss the different types of ads available, and the key strategies you can use to make the most of this service. 

What is Amazon DSP?

Amazon Demand-Side Platform is a powerful programmatic advertising solution provided by Amazon that enables sellers to target specific audiences and display ads across various channels, including Amazon’s own websites, mobile apps, and third-party platforms. 

Imagine advertising space on digital platforms as vacant signages in a city. Programmatic advertising automates the process of buying and selling these “signages.” 

Instead of manually contacting each digital platform owner, you can use a Demand-Side Platform (DSP) – think of this as a high-tech real estate agent. This platform lets you bid on ad space across various platforms, not just Amazon, helping you reach your target audience across multiple platforms with ultimate precision. 

DSP works by leveraging Amazon’s vast pool of customer data and insights. It uses advanced algorithms and machine learning to analyse customer behaviour and preferences, allowing sellers to create highly targeted ad campaigns. This data-driven approach helps sellers optimise their advertising strategies and increase the chances of reaching potential customers. 

Who Can Use DSP and How Much Does It Cost?

Anyone can leverage DSP to reach their target audience, regardless of whether they sell on Amazon. Here are two ways to manage your campaigns: 

  • Self-service: Take full control and manage your campaigns independently. 
  • Managed-service: Receive expert guidance and access to Amazon’s ad inventory, ideal for those new to programmatic advertising or seeking additional support. This option typically requires a minimum spend of USD 50,000 (the amount may vary by location)

Unlike Sponsored Products, Sponsored Brands, and Sponsored Display ads, utilising DSP requires extra support. The self-service options require you to partner with an Amazon Ads Agency Partner. But even then, this comes without the high minimum spend associated with Amazon’s managed-service option. 

What Are the Different Types of DSP Ads Available?

Amazon DSP allows you to deliver a variety of DSP ads such as:  

1) Responsive eCommerce Creative 

Advertisers gained access to the popular Responsive eCommerce Creative (REC) format on DSP in January 2021. This powerful tool allows advertisers to: 

  • Include up to 20 different ASINs (Amazon Standard Identification Number) in a single ad. 
  • Automatically adapt to various ad sizes based on campaign settings. 
  • Leverage machine learning for ad optimisation, simplifying the process and boosting results.

2) Static ads 

Static ads come in banner or image formats and typically include: 

  • A compelling image to grab attention. 
  • A clear call to action (CTA) like “Shop Now” to tell viewers what to do next. 
  • Your brand logo and name for easy recognition. 

Use them to grab attention, build brand awareness, and drive traffic to your Amazon product page, storefront, or custom landing page. 

3) Video ads 

Go beyond static images and tell your brand story with video ads on DSP. These ads can appear in multiple formats: 

  • Eye-catching display ads: Capture attention with engaging videos seamlessly integrated within the page layout. 
  • In-stream video ads: Capture viewers directly within existing video content, like product demos or reviews. 

They offer a dynamic and engaging way to connect with potential customers to tell your brand story and guide viewers to your website or specific Amazon product pages 

4) Over-the-Top Video Ads (OTT) 

Catch viewers’ full attention with Amazon’s OTT (Over-the-Top) advertising on the DSP platform. These ads reach millions who stream content through connected TV sources, like the popular Fire TV Stick. 

Here’s the key difference: Unlike other ad formats, viewers cannot directly click on these full-screen, unskippable ads. However, you can still leverage precise audience targeting on Amazon to ensure your message reaches the most relevant viewers, driving brand awareness and potential future engagement. 

5) Mobile Full-screen Interstitial Ads 

App developers can add full-screen ads to their apps using Amazon’s Mobile Ads API. These ads are clearly marked as such with a close button and an AdChoices icon.  

Here’s the catch: You won’t see these ads on the Amazon Mobile Shopping app. However, they are available for tablets and smartphones running iOS, Android, and Fire OS. 

6) Mobile and Desktop Web Display Ads 

Go where your customers are! Reach them with standard-sized ads that display beautifully on both mobile and desktop, appearing on Amazon and other popular websites. 

7) Audio ads 

Engage listeners with short audio bursts! Amazon DSP offers 10 to 30-second audio ads that play on Amazon and other third-party platforms. These ads are ideal for reaching customers who are actively considering purchasing something. Audio ads are only available through the Amazon Demand-Side Platform. 

Where are Amazon DSP Ads Shown? 

Ads will display across several platforms such as:

  • Amazon Website 
  • Fire TV 
  • IMDb 
  • Freedive (IMDb Streaming) 
  • Kindle 
  • Apps 
  • Published Partners 
  • Third-Party Exchanges 
  • Twitch 
  • Digital Signage Ads 

Advantages of DSP 

Using DSP offers several benefits for sellers looking to advertise their products across platforms:  

  • Increased brand awareness  
  • DSP allows sellers to reach a wide audience and increase brand visibility across platforms. By targeting specific audiences and displaying ads across various channels, sellers can effectively promote their brand to potential customers. 
  • Enhanced advertising strategy 
  • Amazon DSP provides sellers with valuable insights and data to optimise their advertising campaigns. By analysing key metrics and performance data, sellers can make informed decisions and improve their overall advertising strategy. Amazon Attribution is one tool advertisers can leverage for this purpose. It allows you to track the impact of your ads across various channels, make informed decisions, and boost your strategy’s success. 
  • Dynamic targeting 
  • Data-driven ad placement on DSP is a powerful tool in today’s dynamic landscape. It empowers you to stay agile: quickly adapt to audience shifts, target the right eyes, and optimise your strategy. This translates to strategic adjustments: move ad placements, redirect creative spending, and refine domain targeting, all to reach your ideal customer. This data-driven flexibility empowers you to evolve your advertising alongside your audience. 

Key Strategies for Success On DSP

To ensure the success of your Amazon advertising campaigns, it is important to follow key strategies: 

  • Understand your target audience and their preferences. By knowing your target audience, you can create highly targeted ads that resonate with them and increase the chances of conversions. 
  • Monitor key metrics and analyse the performance of your campaigns. By tracking key metrics, such as click-through rates and conversion rates, you can identify areas for improvement and make data-driven decisions. 
  • Optimise your campaigns based on data and insights. Continuously test different ad formats, targeting options, and messaging to optimise the performance of your campaigns. 
  • Focus on the metric of success that aligns with your campaign objectives. Whether it is sales, brand awareness, or customer engagement, set clear goals and measure your success based on those goals. 
  • Stay updated with the latest trends and best practices in DSP advertising. By staying informed, you can take advantage of new opportunities and stay ahead of the competition. 

While other Amazon advertising options might be a better starting point for beginner sellers -check out our blog on these other ad options – Amazon DSP is a powerful tool that can greatly enhance an established brand’s online advertising strategy.  

If the DSP managed-service option isn’t what you’re looking for, then reach out to our team at Export Accelerator, Australia’s official Amazon service provider. By leveraging the capabilities of this demand-side platform, we can help you reach a wider audience and tailor your ads to target specific demographics.  

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