Amazon DSP 101

Amazon DSP 101
February 15, 2022
Amazon DSP 101

Succeeding as an Amazon seller can be distilled down to accomplishing one holy grail task. 

Sellers must connect with the most relevant audiences for their products and brand. 

Whether the goal is to raise brand awareness, increase conversions, or a mixture of both, Amazon DSP (demand-side platform) allows sellers to purchase and execute programmatic campaigns. These campaigns are based on having access to shopper search data that is exclusive to Amazon, in order to reach new and existing audiences on and off Amazon.

Using Amazon DSP, sellers can leverage Amazon’s database of shopper intel from every stage of the customer buying cycle, to optimize their campaign targeting strategies across a variety of channels. 

They are able to reach relevant audiences on Kindle, Apps, FireTV, Third-Party Exchanges, Published Partners, and other media channels. 

DSP is based on CPM (cost-per-thousand), based on impressions, rather than CPC (cost-per-click). Pricing for Amazon DSP ads depends upon the format and placement. Sellers are charged for the ability to pick a specific target audience.

Self-service and managed-service options are available through Amazon. Customers who choose the self-service option are in complete control of their campaigns without Amazon’s management fees, however DSP advertising tends to be more complex than the usual PPC. 

The managed-service option through Amazon requires a minimum ad spend of $35,000 in the US. The managed-service option is designed for sellers with little or very basic programmatic advertising experience, and for companies that want access to Amazon DSP inventory, with consulting included. 

Sellers who wish to have their DSP advertising managed without facing such a high minimum ad spend may opt to work with agencies in Amazon’s partner network, such as Entourage Management Services.

Amazon DSP Strategies

DSP is ideal for sellers who want to focus on reaching audiences that aren’t already finding their products and brand. It’s also an effective means for remarketing to shoppers who are likely to buy a seller’s product again.

Once they have established a moderate customer base (with positive reviews), new sellers can use DSP aggressively to raise their brand’s visibility on and off of Amazon. 

More seasoned sellers can implement DSP advertising to showcase a new product to existing customers, retarget former customers, and to connect with shoppers that are not yet aware of their brand.

Different Types of Amazon DSP Ads

There are three different types of basic ads: Display, Video and Audio.

Desktop and Mobile Display Ads

These banner ads encourage shoppers to go to a product or landing page to learn more about a seller’s brand and products. Display ads can be used on or off Amazon. They can be shown on Amazon, Amazon devices, Amazon-owned and operated sites (Twitch, Audible, IMDb, Goodreads), and across the web.  

Amazon DSP may appear to work like traditional display ads, but there are important differences between Amazon DSP and Amazon Sponsored Display Ads.

Video Ads

In-stream Video Ads – this type of ad is a video, within a branded frame, shown to a targeted audience across all Amazon websites, both on desktop and mobile apps. 

OTT video ads –  these video ads appear with content. The seller’s brand is featured together with other content such as movies, live TV news, and sports. 

Mobile Interstitial Ads – are custom 1st party ads that are used only on mobile devices.

Audio Ads

Amazon has introduced audio ads in a Beta version in the US. Audio ads allow sellers to reach potential customers while they are listening to Amazon Music and Alexa-enabled devices such as Fire TV and Amazon Echo.  

Different Types of Amazon DSP Targeting Options

Amazon DSP is not triggered by keyword searches. Sellers must specify their target audiences in order for Amazon to show relevant ads. That’s why choosing the appropriate DSP targeting option is critical.

There are six unique targeting options available on Amazon DSP:

Option #1: In-Market –  this targeting option recalls a shopper’s searches, buying intent (specific product and product categories), and clicks from the past 30 days.  In market targeting is particularly useful for increasing brand awareness and conversions.

Option #2: Lifestyle – this targeting option is useful when attempting to target a product to shoppers that are in a certain stage of life (e.g., new parents, college students, new homeowners, etc.) based upon their shopping patterns.

Option #3: Demographic – this targeting option is ideal for targeting shoppers that fall into a specific group (age, education, income, gender, etc.), or that share certain shopper                    characteristics, in order to promote a product. 

Option #4: Remarketing – allows sellers to target and re-engage shoppers who have viewed a seller’s detail pages but didn’t buy, or who have viewed, and/or bought products similar to the seller’s. 

Option #5: Advertiser Audiences – a distinct feature of Amazon DSP is its ability to collect third-party data from a seller’s brand (e.g., email lists, webpages with tracking pixels), in order to target unique audiences for their ads.

Option #6: Lookalike Audiences – permits sellers to create and target audiences of shoppers who have similar/overlapping behaviors to their existing or former customers.


How To Get Started With Amazon DSP

Depending on the marketing goal, DSP offers advertising strategies for the small sellers trying out DSP for the first time, and for the more experienced sellers with larger budgets. With Amazon DSP, sellers have several different ad types and audience targeting options available to them that can unlock endless opportunities for their brands.

It’s not enough to have compelling copy and visuals to scale your business in Amazon’s super-competitive marketplace. Sellers must continue to explore alternative ways to ensure that their ads are placed in the correct locations, at the right times and frequencies, before the most relevant audiences on and off Amazon.

To learn more about how your brand can take advantage of everything DSP offers, while also improving the performance of your standard Amazon ads, schedule a call with the experts at Entourage Management Services. Agencies that meet certain criteria, like Entourage Management Services, are able to manage DSP advertising on behalf of sellers without the high minimum budgets.

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About Mike Zagare

He is the owner and founder of PPC Entourage, one of the original amazon ad software and management companies. Mike started off as a physical therapist in 2015 and just knew there had to be a better way so he started his ecommerce journey. Using the power of Amazon Ads, he built a 7 figure brand in less than one year. Now he helps other sellers do the same with free valuable education, PPC Entourage software and the ad agency. He is also the author of the Amazon Ads Playbook series.

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