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AMZ Whisperer

What is Amazon DSP? Is it the Secret to Increase Your Sales?

With so many new product sellers flooding the Amazon marketplace every day, you need to stand out from the crowd if you want to make your products look appealing to potential buyers. 

And while well-designed product images, product descriptions, and bullet points can go a long way in persuading shoppers, competition on Amazon is getting extreme so you need to step up your strategies to stay on track and be ahead of the competition. 

Well, if you are looking to increase your audience and conversion rate,  DSP could be what you are looking for. 

But what exactly is Amazon DSP and could it be the secret to increasing your sales? Let’s find out!

What is Amazon DSP?

DSP stands for Demand-side platform— an advertising platform that lets advertisers buy display and video ad placements across the online platforms- both on and off Amazon.

If you consider engaging in DSP, note that the Amazon DSP is programmatic advertising. It means that  Amazon uses automated processes within advertiser-defined parameters, to purchase digital ad inventory across the web, mobile, apps, video, and social media audiences. 

The DSP allows you to target your campaigns based on many different factors. 

  • Behavioral targeting allows you to target customers based on their browsing activity behavior like web searches, frequently visited sites, and purchase history over the past 30 days. 
  • Contextual targeting refers to relevant ads shown while people use the Internet.
  • Lifestyle targeting targets people who have very specific buying patterns from a certain category such as sports and outdoor. 
  • Remarketing allow you to show ads to people who have previously visited your site or clicked on one of your ads—whether they do it while they’re browsing Amazon or not.
  • Audience Lookalike target consumers whose browsing and purchasing behavior are similar to your current customers 
  • Advertiser Audiences uses your own data to target consumers that have already interacted with your brand.

Benefits of Amazon DSP as a seller:

  • Create brand awareness to customers on and off Amazon
  • Expand  customer reach
  • Reach custom audiences built from Amazon data
  • Retarget customers who have purchased and engaged in your product
  • Be ahead of the competition in reach and frequency
  • Increase in conversion rate
  • Best for consumable products. For example, cosmetics, medicine etc. DSP can retarget let’s say your medicine is just good for 30 days, you can set an ad to retarget this customer in 30 days.
  • Cross-sell complimentary products to new or previous customers

How To Access Amazon DSP?

Amazon DSP is available to advertisers whether you are an Amazon seller or not. Though it’s owned by Amazon.com, it’s not exclusive to Amazon sellers. 

There are 2 available options to access DSP: Self-service and Managed-service
  1. Self-service. In this option, customers are in full control of their campaigns or the service agency they hired. 
  2. Managed service is controlled by an Amazon-owned managed services team. It is designed for companies that want access to Amazon DSP inventory, with consultative service, or for those with limited programmatic advertising experience.  The managed-service option typically requires a minimum spend of$35,000- $50,000 USD (minimum may vary per country)

Difference Between Amazon DSP and Amazon Sponsored Display

An Amazon DSP ad occurs every time an ad is shown to a consumer and includes any type of mobile or video advertising, including sponsored text, image, or overlay ads. It works on a CPM basis based on impressions.

If a company wants to have direct control over its Amazon ads, they need to use Sponsored displays which are charged based on  CPC (cost-per-click) method 

To simplify, with DSP, you pay for impressions while for Sponsored display, you pay for clicks. 

Types of DSP Ads:

Amazon DSP is a service provided by Amazon that lets sellers purchase ad space as well as use tools to help them communicate with prospective consumers on Amazon platforms. 

Some of the locations where ads may be placed include Kindle, IMDb, Freedive, and other third-party providers. Ads included in this system are made up of various types:

  • Desktop Display Ads
  • Mobile Banner Ads
  • Mobile Interstitial Ads
  • Image & text ads
  • In-Stream Video ads

Is Amazon DSP a good investment?

Aside from being a fantastic tool that can help brands connect with new audiences, Amazon DSP is also a more expensive option for building ad campaigns in comparison to Amazon PPC. 

If you’re an established brand that wants to grow beyond Amazon, then DSP is the way to go. 

However, for brand new sellers, DSP is not a suitable option due to the fact it’s quite expensive. So we recommend using Amazon PPC instead in the early days since it costs less money and gives one the chance to gain experience with PPC ads before committing to DSP advertisements.

To learn more about PPC, read here

If you decide Amazon PPC is not suitable for you and would rather commit to building ad campaigns through Amazon DSP, make sure you have a healthy budget set aside.

If you are ready to run DSP, here are the service providers who can help you start:

  1. Perpetua 
  2. Incrementum Digital
  3. BetterAMS
  4. Ad Badger

Conclusion

As one of the largest online retailers in the world, Amazon is one of the most popular platforms for buying products. However, it can be difficult for brands to get their products noticed on Amazon and generate more sales with the heavy competition.  

As an established brand, you already know the value of having a good product that offers utility to your target audience. 

But at some point, you’re going to need more than just your growing reputation within your target market if you want to expand. A demand-side platform (DSP) can help you do that.

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