Are you thinking of a powerful way to reach targeted audiences and increase Amazon sales?
With Amazon Demand-Side Platform (DSP) ads, you can purchase audio placements, video, and programmatic display, on websites and mobile apps off Amazon. You can also purchase these on Amazon-owned sites like Twitch.
Amazon DSP ads leverage data from shoppers on Amazon to target high-intent shoppers and drive sales both on and off the Amazon marketplace.
You can take advantage of Amazon DSPs to improve your visibility, target specific customers, and increase sales on Amazon.
In this guide, we will take you through all you need to know about Amazon DSPs and how you can set up your Amazon DSP ad campaign.
Amazon Demand-side Platform or DSP is a powerful tool on Amazon advertising that allows Amazon sellers to target potential customers in real time! So, you can deliver personalized ads ensuring the right potential customers see them at the right time.
With Amazon DSP, you can target customers across multiple sites and devices not only on Amazon but also off Amazon.
Amazon DSP is also available to merchants that do not own an Amazon store.
Here are the four different types of Amazon DSP ads you can explore:
Think of images and banners. The static Amazon DSP includes a picture or banner, the brand logo and name, and a call-to-action. These ads encourage immediate action from targeted audiences (This could be to buy, download, or click something). When a customer clicks on a static ad, they are redirected to your Amazon store or website.
Video ads work well for grabbing the attention of potential customers and introducing a new product to your customers. With video ads, you can show potential customers how your product can fit into their daily lives.
You can choose to upload self-made videos or use a video builder, select a template, and create your video ad.
As an Amazon advertiser, you know that personalization is essential to targeting and getting the attention of potential customers.
What happens with dynamic ads is that they can choose the content type that suits your audience. This is based on data from the user’s browsing history. With dynamic ads, you don’t have to go through endless reports trying to figure out what ads will work best for your audience. You can create more personalized ads, drive engagements, and ultimately increase sales.
Over-the-top video ads are a type of Amazon DSP created and displayed on television like on the Amazon Fire TV stick. This type of ad is best for brand awareness and doesn’t carry a link to direct your audience to your Amazon product page or store.
Amazon demand-side platform ads are a powerful advertising solution for businesses. Here are a few reasons to leverage Amazon DSP ads and increase business sales:
Unlike Amazon PPC ads, Amazon DSP ads have wider targeting options giving you more opportunity to reach newer and larger audiences. These targeting options include:
Thanks to analytics features on Amazon DSP, you can get access to audience data and campaign performance insights. With these valuable insights, you can analyze customer purchasing behavior and track their activities before, during, and after your ad campaign. You can also adjust your marketing strategy to meet the needs of customers and ultimately increase your campaign’s effectiveness.
With Amazon DSP, you can access customer data based on interests, past purchases, and other insights and reach potential customers across multiple devices increasing your chances of getting a conversion. What’s more, you can also track your performance using the optimization tools on Amazon DSP and optimize your campaigns to improve conversion rate and sales.
First-party data refers to data collected from customers, website visitors, and other sources on Amazon DSP. Thanks to first-party data, you can create personalized ad content and custom audiences. Ultimately, this can increase your audience reach, increase your conversion rate, and boost sales.
Now you know what an Amazon DSP ad is, let’s walk you through a step-by-step process to help you set up your first Amazon DSP ad campaign:
Both merchants who sell their products on Amazon and those who don’t can access Amazon DSP. However, they can do so through the Self-service and Managed-service options.
With the Self-service option, you get full control of your advertising campaigns and budget. On the other hand, if you want to access Amazon DSP inventory and consultation service or you’re not experienced with programmatic advertising, you can go for the managed-service option.
Before creating that grand Amazon DSP ad, it is essential to set clear objectives and goals as this will help you decide what type of ad to run, the inventory options available, and tactics you want to employ.
Your campaign goals could include increasing brand awareness, promoting a new product, or driving sales.
Ensure your Amazon DSP campaign objectives align with your overall marketing goals and ensure they are specific, measurable, achievable, relevant, and time-bound (SMART).
Next, you want to identify and segment your customers. One of the major benefits of using Amazon DSP is that you can take advantage of its wide targeting options to target specific audiences based on factors like demographics, behaviors, and interests. Some of these targeting options include in-market, lifestyle, contextual, remarketing, and so on.
To create more personalized Amazon DSP campaigns that resonate with your target audience, carry out in-depth research to find out what your customer’s preferences, interests, and pain points are. You can draw insights from Amazon’s extensive customer data including purchase history, search queries, user behavior, and so on to create data-driven customer segments.
Next, select an ad format. Amazon DSP offers various ad formats depending on who your target audience is and what your campaign goal is. You can choose display banners, carousel ads, or video ads depending on what your objectives are.
What’s more, you can experiment with various formats to find out which works best to help you target potential customers and meet specific objectives. Within these ad formats, you can also test various creatives to see which combination drives the highest engagement and conversion.
Before you launch your ad campaign, it is important to determine a budget that aligns with the campaign objective, target audience size, and anticipated ROI. You also want to consider the resources you have available. Don't go over the top. Start with a reasonable budget.
Monitor your ad performance and make necessary adjustments. So, you may want to allocate more funds to top-performing ads to maximize returns.
You can create Amazon DSP as creatives from ad formats like display ads, video ads, and audio ads.
Design visually compelling ads that grab the attention of your target audience while communicating your brand's value proposition.
Ensure you use high-quality images, banners, and videos, persuasive copy, and a clear call to action.
Test different ad creatives to find out what elements are most persuasive and engaging. Using data-driven insights, continuously tweak your ads to improve performance.
Once your ad creatives are ready, you can then upload them and wait for approval. This typically takes 24 hours or longer. Once approved, your campaign is ready to go live.
Closely monitor your campaign’s performance using analytics tools on Amazon. Depending on your goals, you want to keep an eye on specific metrics including impressions, conversions, click-through rates, purchase rates, return on ad spend (ROAS), etc.
There are various Amazon DSP ad specifications depending on the type of device, ad format, and ad placement.
It is crucial to ensure that your ads meet the specifications to avoid rejection and improve your performance.
Both sponsored display ads and Amazon DSP are Amazon advertising solutions with distinct ad placements, audience reach, and targeting capabilities.
Sponsored ads are a self-service Amazon advertising solution that allows advertisers to promote their products to target customers.
On the other hand, Amazon DSP ads make use of programmatic advertising to target customers both on and off Amazon. While Sponsored ads cover Amazon-owned websites, Amazon DSP covers a broader range of websites and apps outside Amazon.
So how much does it cost to run an Amazon DSP ad? Well, Amazon DSP runs a cost-per-thousand-impression pricing model, which means that you pay a specific price for every thousand impressions your ad gets.
However, the cost of your Amazon DSP ad will depend on several factors including your ad format, competition, and audience targeting.
If you choose the self-service option, you get complete control of your campaign with no management fees. However, to ensure you manage your budget effectively, it is recommended that you start with an advertising cost of $10,000.
On the other hand, if you choose the managed-service option, you will need a minimum spend of $50,000.
A well-thought-out and executed Amazon DSP campaign can reel in profit for your business. With access to sophisticated advertising tools and first-party data, you can expand your audience reach, increase brand awareness, and boost conversion and sales.
When running an Amazon DSP ad, experiment with different creative strategies and targeting options while keeping an eye on your metrics to ensure you're maximizing your ad spend.