Unlocking Amazon DSP: How to Expand Your Reach Beyond Traditional PPC
As Amazon continues to expand, an increasing number of sellers and brands are trying to find more efficient ways to target their customers. Most people are familiar with Sponsored Products and PPC (Pay-Per-Click) ads. Lately, Amazon DSP or Demand Side Platform has been getting a lot of attention. It helps sellers advertise their products to a larger audience even outside of Amazon.
In this guide, we will discuss everything you need to know about Amazon DSP, how it operates, and the ways it assists in scaling your business.
What is Amazon DSP?
Amazon DSP is a form of advertisement technology. It allows sellers and brands to display video and audio advertisements to potential customers on and off Amazon including IMDb, Twitch, and many more.
The most interesting part? You can leverage Amazon’s valuable customer information to tailor the marketing strategy to ideal customers based on their purchase interests.
Main Features of Amazon DSP:
Target people based on purchases or webpages visited
Advertise on and off the Amazon platform
Retarget potential customers who previously viewed your product
All types of advertisements can be done including images, videos, and audio
Clearly outlined reports can be used for tracking advertisement performance
How is Amazon DSP Different from PPC?
PPC ads come up whenever someone searches a particular keyword on Amazon. For example, if a customer types “running shoes,” relevant ads are displayed.
However, Amazon DSP is different. It doesn’t wait for people to search. Like PPC, DSP finds people based on their interests, previous shopping, and habits, even outside of Amazon.
Why Use Amazon DSP?
Benefits:
Get More customers – Even outside of Amazon
Retargeting – Remind shoppers whose minds wandered
Brand Awareness – What are people saying about your brand
Smart Data – Using targeting Using Amazon’s data
Creative Ads – Adding fun videos, banners that move and more
How Amazon DSP Works
Targeting the Right Audience
You get to choose who will see your ads depending on
What they purchase
What they search for
Their location
Their age, hobbies and interests
For example, if someone buys fitness gear but hasn’t seen your brand, DSP will target those people on fitness blogs and even IMDb.
Retargeting
With DSP ads, they can remind you or target you should you click on the item and do not buy the product. Retargeting ads are like perfect for the internet and are so useful.
Lookalike Audiences
These are also potentially advertisers or already known companies who are your client. Amazon can always pick these from the group that are already defined as your clients to withdraw and show identifies to customers.
Where can DSP advertisements be found?
Amazon.com
IMDb
Fire TV
Kindle
Other websites
Mobile applications
Categories of Marketing through Amazon DSP Advertising
Display advertisements: Banners or blocks on other Internet sites
Video advertisements: Short video clips aimed for brand marketing or storytelling for brands
Audio advertisements: Commercials that play on streaming music or gossip sites such as podcasts
Actual Example: A skincare company utilized a 15-second video ad on Amazon DSP. Within two weeks, their sales increased by 30%, while their cost-per-sale decreased by 40% in contrast to using PPC advertising alone.
Steps to take in order to set up Amazon DSP
Confirm eligibility: DSP can be used by both sellers and vendors. If you have no prior experience, assistance through Amazon or an agency is recommended.
Set your targets: Would you like to increase brand awareness or sales volume?
Target your audience: Pick the type of audience you want to reach using data obtained from Amazon.
Ad creation: Create still images, videos or audio advertisements that convey the required message concisely.
Campaign configuration: Decide when and where to publish the advertisements, how much you intend to pay, and the maximize bid for each click on the advertisement.
Track/Overhaul: With the use of Amazon’s reports, enhance your marketing strategies gradually.
Helpful Tips
Alter the ads dynamically in accordance with the shopper’s interaction.
Avoid over showing an advertisement (enforce ad ratio caps).
Utilize distinct images or text to measure what suits best.
Check your advertisements on smartphones, tablets, and computers.
Amazon DSP vs. Sponsored Display.
Feature Amazon DSP Sponsored Display
Targeting Power Overly sophisticated Basic
Reach Off and on Amazon Almost exclusively on Amazon.
Data & Reports Exceptionaly detailed basic
Creative Options A board ad choices (videos, audios, and displays) Restrained advertising options
Advanced DSP Strategies (Uncomplicated)
Geo-Targeting: Display advertisements in selected regions or cities.
Time Targeting: Show off advertisements during specific days or hours.
Behavior Targeting: Display ads according to a user’s shopping history.
Brand Safety: Ensure that your ads do not feature alongside inappropriate or disturbing materials.
Use with PPC: Better outcomes using DSP combined with PPC — Using DSP for advertising and PPC for search traffic retargeting and branding.
Real-Life Example
A nutrition brand employed PPC, and DSP. PPC caught shoppers on the product page, but DSP reminded shoppers to buy later. Combining these two increased sales by 50% within a single month.
Avoid These Common Mistakes
Don’t skip out on utilizing the report features — they tell you what’s working.
Avoid marketing to an overly broad audience — focus on targeting fewer people.
Use quality images and videos.
Ensure that you test running various versions of your ads on different audience segments.
How to Measure Success
Amazon DSP allows you to track the following:
Impressions – The total number of views your ad received.
CTR (Click-Through Rate) – Total number of clicks received.
ROAS (Return on Ad Spend) – Revenue earned from the advertisement.
CPA (Cost Per Acquisition) – The amount incurred for each sale.
Purchase Rate – Number of potential customers who finalized buying a product.
All these metrics must be accurately analyzed in order to adjust for optimal campaign performance.
Conclusion
With Amazon DSP, professionals can effortlessly enhance their digital reach for clients using diverse advertising strategies — not limited to Amazon. While it’s compatible with PPC, it enhances brand-building capabilities and supports sales growth.
For access to more advanced ad functions, Amazon DSP is the ideal solution.
FAQ:
1. What is Amazon DSP?
An advertising solution that enables running display, video, and audio ads on and off Amazon.
2. In what ways does it differ with PPC?
PPC waits for users to look for something first. On the other hand, DSP actively seeks out potential customers using pre-collected data about their buying habits even when they are not searching at that exact moment.
3. Who is eligible to utilize it?
This can be accessed by sellers, brands, and even businesses that do not have an account on Amazon, provided they have the budget for it.
4. In what ways does DSP assist in retargeting?
It advertises to those who previously interacted with your product but did not complete a purchase, making it easier for them to return.
5. Is it possible to reach new audiences using DSP?
Absolutely! You can target people with similar interests and those who intend to buy what you offer.
6. What are the locations of my advertisements?
Your advertisements will show up on IMDb, Amazon Fire TV, as well as on thousands of other websites and apps.
7. Which advertising types do I have access to?
Smart automatic product updating ads, video, audio, and banner ads.
8. Is there a minimum budget?
The DSP managed by Amazon starts with a minimum of $35,000. Some agencies are willing to assist you startup under this amount.
9. Am I able to monitor my advertisement results?
That’s true! You can access reports that highlight the number of clicks, sales, views, and many more.
10. Where should I begin?
You can partner with a DSP Agency or reach out to Amazon directly if you meet certain budgetary requirements. Self service DSP can also be done through designated partners.
If you’d prefer a more polished presentation or would like this in a downloadable version, just let me know and I can create visuals.