What is Amazon DSP?
Amazon DSP is a demand-side platform that automates the process of buying display, video, mobile and search ads to reach new and existing consumers both on and off Amazon.
DSPs use concrete data to automate the decision-making process by deciding which impression to bid on and then calculating the maximum value of each impression. DSPs are an automated campaign building tool which allows you to set parameters for your desired target audience by providing information such as gender, age, location, annual income, device (phone, PC, tablet, etc.) and other pertinent details. By determining the correct price to spend on each ad, a DSP prevents you from overspending on an ad budget while at the same time running ads that are specifically geared toward your target audience - all with a click of a button.
How Can an Amazon Ad Consultant Help My Advertising Needs?
By utilizing Amazon DSP you will be running more ads across more channels. One of the largest benefits for you and your Amazon ad consultant is the time savings. There is less effort involved to set up the ads but monitoring them is still important. DSP also allows you or your Amazon ad consultant to stay in one account for all your advertising campaigns.
How Can I Reach My Target Buyer?
The Amazon DSP Audience Builder is a proprietary tool that gives advertisers the ability to create and outline specific competitor audiences on a self-service basis. Your target audience can be created based on previous data collected that pertains to the interactions your customers have had with your page, different brands, products, and searches. Using the Audience Builder tool, you can effortlessly create retargeting and conquest marketing campaigns.
Get You The Most Bang For Your Ad Budget
Once upon a time, digital ads were bought and sold by ad buyers and salespeople, making the whole process slow, time-consuming, and extremely expensive. With the advent of DSP, negotiations between media buyers and publishers have been greatly reduced, and ads are now more affordable, highly targeted, and more effective as a result.
Besides cutting straight to the chase by going directly to the source, using a DSP makes the process of buying ads cheaper and more efficient by offering a single tool for ad campaign launches, optimization, and analytics. This gives advertisers a significant competitive edge over traditional ad networks and saves money on advertising cost. However, businesses spend more for the initial set up and maintenance of these types of ads.
Consolidate Your Advertising Efforts
Amazon DSP consolidates your advertising into one convenient platform, instead of trying to juggle multiple sites and accounts. It is a valuable resource for sellers both on and off of the Amazon platform. It also gives you access to the Amazon audience without having to sell directly on Amazon. Amazon DSP is great for brands who want to expand customer reach and expand brand awareness.
Revolutionizing the Modern Ad Space
Why are marketers funneling their ad dollars away from Facebook and Google and investing in Amazon advertising instead? To start, users come to Amazon not to search or connect with friends and family, but with the intent to buy. Additionally, Amazon ads often don’t feel like ads at all.
PPC ads often blend in with the other products in the organic search results, creating a more seamless and less intrusive experience for shoppers – which means more clicks and conversions for you, the seller or marketer.
With so many shoppers flocking to the platform, Amazon is a treasure trove of valuable information about consumer shopping habits and demographics. All of this data is a dream for advertisers. In fact, Amazon is now the third-largest digital ad platform in the United States, second only to Google and Facebook. And it is catching up to its competitors quickly. The number of Amazon sellers using Amazon ads has increased by 38%. This proves the effectiveness of Amazon's advertising platform.
Not only has traditional Amazon PPC increased but so has the usage of Amazon DSP. 26% more brands leveraged Amazon DSP than the previous year. And 51% of brands on Amazon said Amazon DSP produced a greater return on ad spend (RoAS).
Should or Shouldn't You Consider Amazon DSP
Buying ad space in real-time through Amazon DSP gives you the opportunity to run highly targeted ad campaigns to your buyers across all platforms, not just Amazon. An additional benefit is that these ads can run at peak times and in the correct format, minimizing sluggish ad campaigns that don’t deliver the desired results.
Amazon DSP is available to advertisers who sell products both on and off Amazon, and is best suited to advertisers who want to programmatically buy display and video ads at scale. This advanced advertising platform takes the guesswork out of the ad game and provides you with all the tools you need - right at your fingertips.
Amazon offers a variety of advertising products to help both Vendor Central and Seller Central sellers grow their business and expand their reach. Whether you are new to Amazon advertising or want to optimize your existing campaigns, our Amazon ad consultants are here to help you get the most bang for your advertising buck.
Pros and Cons of DSP Advertising
- Time Savings
Advertising using a DSP streamlines the management of campaigns across multiple networks.
- More Targeted Advertising
DSPs offer advertisers a variety of targeting capabilities, including geo-targeting, demographic targeting, retargeting, keyword targeting, and more.
- More Ad Options
Advertisers have access to a wider variety of advertising platforms (they can advertise within Amazon and outside of Amazon) than working through a single network.
How to Get Started
Self-service and managed-service options are available with Amazon DSP. Self-service customers are in full control of their campaigns, and there are no management fees.
The managed-service option (through Amazon) is a solution for companies who have a large budget and want access to Amazon DSP inventory with white-glove service, or those with limited programmatic experience. The managed-service option typically requires a minimum spend of $35,000.
To use this service with the help of Amazon’s team takes no small budget. But don’t feel that you can’t advertise or build a strong business without using DSP - because you can. One of our Awesome Dynamic Amazon ad consultants can help you place your Amazon advertising and get results, as well as create a custom Amazon Brand Store to intrigue and share your brand in more detail with customers.
A Real Life Example: Decreased Advertising Spending by 52%
A small but thriving fishing tackle company needed to decrease their overall Amazon advertising spend. Awesome Dynamic performed an audit of the existing campaign and began targeting areas that were spending ad money without delivering results. Over the course of one year, sales volume were maintained and ad spend was reduced by 52%. Read more.
It is important to always allocate funds for advertising and marketing in order to compete with other sellers and grow your business. Depending on the size and needs of your business a personalized plan can set you up on the right path - which may include DSP or strictly PPC campaigns and an Amazon Brand Store. Talk with an experienced Amazon ad consultant to discuss your business model and create a plan that will work for you. Schedule your appointment today.