For sellers looking to get on that next level of advertising on Amazon, checkout Amazon DSP Ads (Amazon Demand Side Platform).
Businesses looking for a solution to further expand their advertising strategy through advanced targeting and precise audience control might use Amazon DSP.
It’s a fantastic approach to raise brand exposure not only on Amazon, but also elsewhere.
So, if you’re new to Amazon DSP or searching for ways to get started, Ecombranding.co has got you beat.
What is Amazon DSP ads?
Amazon DSP is a tool for buying video and displaying adverts programmatically across the internet.
What’s a display ad? Here’s an example:
You’ve undoubtedly seen hundreds of these on the internet without understanding they’re from Amazon!
Whatever exactly do I mean when I say “programmatically”? It’s just a fancy term for Amazon’s algorithm selecting and bidding on the best ad slots (on and off Amazon) depending on your money, base/max bid, and target demographic.
The best thing is that, because Google’s algorithm is regularly updated with new consumer data, its targeting powers improve every day.
Where Will Amazon Display Ads & Videos Be Shown?
Amazon Display and Video Ads may appear on the following sites:
- Amazon O&O (owned and operated) sites, apps, and devices: Zappos, Goodreads, Twitch, ShopBop, Audible, etc.
- Amazon devices: Amazon Echo, Amazon Kindle, Amazon Fire tablet, Amazon Fire TV, etc.
- With Amazon DSP, you get access to a big number of individuals!
With Amazon DSP, you get access to a big number of individuals!
How Do Amazon DSP Ads Work?
“What makes these ads different from Google or Facebook ads?” you might wonder.
One thing stands out with Amazon DSP ads: user data.
Google, you see, is really adept at figuring out what you’re looking for. Facebook has an excellent understanding of your interests. However, Amazon has an excellent understanding of what you buy.
Why is Amazon So Good at It?
Back in 2003, Amazon was an early adopter of Big Data. Since then, they’ve essentially turned ecommerce into a business of knowing who, what, when, why (or why not), and at what price.
They’re likely to know more about your shopping habits than you do. They have sufficient data to both forecast and affect shopping behavior.
How Does Amazon Collect This Customer Data?
Fundamentally, they track your online activity, such as which websites you visit (or which pages you visit) and what activities you do on those websites. This is known as Pixel Based Targeting, and you may have seen it in Facebook ads.
The computers at Amazon then classify certain activities and data points into groups. These are groupings of people whose actions can be predicted based on the actions of others in the group. Audience Lookalike is the term for this.
Let us just assume Tim and Steve are both interested in vegan health supplements and high-end yoga mats. If Tim is interested in reusable reed cups, there’s a good possibility that Steve will be as well.
How & What Does Amazon DSP Target?
Amazon uses all of this information to target customers in six distinct ways:
- Behavioural: hones in on customers who have shown specific behaviours such as buying or browsing specific product categories over the past 30 days.
- Contextual: shows real-time ads to people as they browse the web based on websites they’ve been to that are thematically similar to your product.
- Lifestyle: shows ads relevant to people who habitually buy from a certain category (such as Exercise & Fitness), suggesting a certain lifestyle.
- Remarketing: re-engages customers who have previously interacted with your product or brand.
- Audience Lookalike: targets customers who behave similarly to selected groups, such as a certain brand’s customers or a competitor’s customers.
- Advertiser Audience: leverages information from a brand’s data, such as CRM data, a hashed email list, or a product page with a tracking pixel.
You’re sure to unearth a treasure trove of clients waiting to buy your product with all of these different targeting methods and Amazon’s vast reservoir of data.
Is Amazon DSP Worth Your Time & Money?
You might be thinking to yourself, “That’s great, I can make such a powerful marketing campaign with all that data!” Please add me to the list!
Hold your horses. It isn’t quite that simple.
Unlike many other Amazon offerings, getting up with Amazon DSP isn’t simple. You’ll have to decide between Amazon Managed Service and Enterprise Self-Service.
Amazon Managed Service
You’ll be using Amazon’s ad team to manage your campaigns if you choose this option.
A minimum ad spend of $35,000 USD is required to make this worthwhile.
This option is appropriate for brands that don’t have much experience with DSP and/or want practically everything done for them.
Enterprise Self-Service
The “soul” option is this. You escape Amazon’s minimum ad spend constraints and have more control over your campaigns if you go it alone.
Although there is no minimal ad spend, Amazon recommends that you set aside $10,000 USD a month for at least three months to get the most out of this promotion.
Brands could also only be able to use the portal through a pre-approved agency. Which implies you won’t be able to do it entirely on your own.
These services often charge 7 to 25% of the clearance price. The final cost will be determined by the provider you choose, your budget, and the complexity of the campaigns you plan to execute.
This strategy is perfect for established businesses who know exactly what they want, how they want to achieve it, and appreciate having more control over their efforts.
Is It Worth It?
The final sentence is that it is debatable.
Amazon DSP is best thought of as the “next step” for your Amazon brand, product, or service.
Individual advertising will be charged based on CPM regardless of which option you select (cost per 1000 impressions). This is in contrast to pay-per-click advertising, which only charges you each click.
Amazon DSP is unlikely to assist a brand-new vendor. In fact, it would almost certainly be overkill and prohibitively expensive. New merchants should limit themselves to Amazon PPC.
However, if your company is more well-known, you have more capital, and you’re trying to expand, Amazon DSP should be your next step. It’s a great approach to reach out to people who aren’t browsing for your product on Amazon and retarget folks who are likely to purchase it.
What’s the Difference Between Sponsored Product Ads & DSP Ads?
You could be wondering how Amazon Advertising Product ads (also known as Amazon PPC) vary from DSP ads.
Here’s the rundown:
- PPC advertisements only display on Amazon; DSP advertising appear on and off Amazon, on any Amazon-related gadget, and on third-party (non-Amazon) websites all over the internet.
- DSP is only available to the users with a large advertising budget exceeding $35,000 who want to work with an Amazon marketing consulting, or who want to work with a qualified agency to access Enterprise Self-Service. Amazon PPC is obtainable for Vendors and Vendors in eligible categories who have the Buy Box.
- DSP advertisements can target depending on Behavioral, Contextual, Lifestyle, Remarketing, Audience Lookalike, and Advertiser Audience. PPC ads can be targeted based on phrase, ASIN, industry, and name.
Types of Amazon DSP Ads
DSP advertisements can target depending on Behavioral, Contextual, Lifestyle, Remarketing, Audience Doppelganger, and Advertiser Audience. PPC ads can be targeted based on phrase, ASIN, industry, and name.
Dynamic Ecommerce
Dynamic internet advertisements adjust which creative appear dependent on the campaign’s goal.
This means it changes to whatever the computer thinks will entice the person to click on the ad.
Static Ads
Because static ads lack dynamic aspects, you’ll need to include particular calls-to-action like “Shop Now.”
To lure consumers in and create brand awareness, I’d advocate using these ads to target folks in the middle to upper-funnel of the buyer’s journey.
These advertisements will take you to an Amazon storefront, a product detail page, or a customized homepage.
Video Ads
Video commercials are an excellent method to express your brand’s narrative, connect emotionally with your audience, and convey a lot of information in a short amount of time. DSP allows video advertising to be placed into streaming video or as part of a banner ad.
Amazon DSP Ads Strategy
Video commercials are an excellent method to express your brand’s narrative, feel a connection with your audience, and convey a lot of information in a short amount of time. DSP allows video advertising to be Goal #1: Retargeting
Direct marketing is the technique of displaying your brand or product to someone who has previously expressed interest in purchasing it.
Ads that retarget you are incredibly successful. Retargeted audiences are 43 percent more likely to convert, according to statistics. With this method, you’re simply going after the low-hanging fruit.
Goal #2: Brand Awareness
Individuals who already know you will benefit from retargeting, but what about those who don’t?
Amazon DSP advertisements are also useful for reaching out to new prospects who aren’t yet aware of their demand for your goods.
While retargeting focuses on consumers at the bottom of the funnel, brand awareness focuses on people at the top of the pipeline.
Why is this important?
Therefore, if you can reach out to people who are most likely to convert in the future, even before they exhibit interest in your product, you’re assisting them in choosing you over your competition. They may not convert right away (or ever), but by taking the long view, you’re creating the foundation for future success.
Goal #3: Marketing Insights
DSP advertisements can tell you a lot about who your consumers are because to all of this delicious data. Realizing who they are will also help you personalize your future marketing plan to them.
You could be shocked to hear, for example, that your ads perform well among women in their 40s and 50s who have shown an interest in yoga.
Or that individuals who like your items have other hobbies in common, such as hiking or cars.
You can also gain insight on how users shop for your goods, how often they do so, and when they do so.
Finally, these data points aid in the positioning of your brand and the customization of your marketing plans.
Conclusion
For companies that are looking to use big data to take their marketing to the next level, Amazon DSP is the place to go.
While PPC is effective for attracting clients at the bottom of the funnel, DSP is ideal for attracting customers at the top of the funnel. When both tactics are used together, an effective advertising strategy is created.
You’re not quite ready for Alexa DSP yet? More info on Amazon PPC can be found here.
