Amazon DSP: Automate buying display and video ads
Demand-Side-Platform (DSP) is the Amazon platform which enables brands to purchase video and display advertising placements. Advertisers use Amazon DSP for its targeting capabilities, which can show ads on Amazon marketplaces and extend the reach to other websites, applications, or OTT devices. This is particularly effective for brands that are seeking to boost impressions and target the correct user demographic.
Programmatic advertising uses data to determine which digital advertising channels and device spaces should be purchased and the price that should be paid. The data is exclusively available through Amazon and DSP is the only way brands can use accurate data to target Amazon customers off the platform.
According to a recent Amazon Ads Benchmark Report, in Q3 2019, 32% of all Amazon DSP spend was attributed to ad impressions that appeared outside of the Amazon marketplace. Currently, DSP is also the only way of accessing advertising that is exclusively available on Amazon’s properties and devices such as Kindle, IMDb, and Fire TV.
How does DSP work?
Presently, most of the advertising options available on the platform use the cost-per-mille (CPM) model. Unlike traditional cost-per-click models available on the Amazon Ad Console, the DSP model focuses on purchasing reach to a targeted audience and serving relevant adverts to that audience. Please note that the model used for videos is cost-per-view (CPV).
Targeting parameters and types of ads
Amazon DSP enables advertisers to reach shoppers anywhere within the marketing funnel, and even includes customers that have demonstrated recent intent to purchase a brand’s product. The segmentation tools and targeting parameters include the following options:
Behavioural segmenting which includes audiences that have shown specific trigger behaviours such as purchase intent in specific Amazon categories within the past 30 days.
Lifestyle segmenting which targets audiences that have demonstrated search and purchase behaviours associated with a common lifestyle.
Contextual segmentation enables targeting audiences based on their browsing in real-time to display contextually relevant adverts.
Re-marketing will re-engage shoppers that have searched, viewed and/or purchased any of the brand’s products or similar products.
Audience lookalike segmentation will include users with similar shopping behaviours as other specific audiences, such as existing customers.
Advertiser audiences will leverage a brand’s data such as CRM information, hashed email lists or website pages with tracking.
How to use the platform
Prior to establishing an advertising strategy, sellers should be aware that products must be retail-ready to apply for the program. This can be achieved by optimising listings with high-quality images, concise bullet points and descriptions, and at least a 3.5-star rating.
It is also recommended to run Ad Console campaigns, focusing on branded searches during this period. As DSP advertising begins to work, there will be an increase in branded searches. Not all products will be successful for this type of advertising, therefore, brands should be careful when adopting an always-on approach.
When to use Amazon DSP campaigns
Amazon DSP campaigns are ideal for brands that are creating more demand for products and establishing a consistent strategy for customer acquisition, whereas other tools such as Amazon Ad Console are more tailored to companies that want to capture the existing demand for products.
For best practices, both the Amazon Ad Console and the Amazon DSP platform should be used together. This will enable coverage of the entire sales funnel, by reaching more high-intent customers, accessing new formats and re-engaging interested shoppers. Amazon’s data suggests that search and display ads combined can increase demand for a brand’s products by up to 100%, total sales by as much as 30%, and ROAS by up to 160%.
For more information about advertising on Amazon, including Amazon Ad Console, PPC, and Amazon DSP, don’t hesitate to get in touch with one of our dedicated teams to find out how we can help your brand.