What is the Amazon DSP Advertising Platform? Beginner Guide

Zeeshan Riaz June 3, 2022

In many marketers’ minds, Amazon Ads refer to the advertisements displayed when shoppers are searching for products on the website. Most notably, Amazon Sponsored Products and Sponsored Brands offer consumers the opportunity to reach them while conducting their purchase research.

This type of advertisement is a superb way to reach consumers who know exactly what they want to purchase and are searching for it. The advantage of these ads is that shoppers must search on Amazon for a brand’s target keywords in order to see them. 

amazon DSP advertising

Yet how can marketers capitalize on Amazon’s reach and database to reach consumers beyond Amazon?

In order to make a product more widely known, other marketing methods are required. Consumer goods companies, such as Amazon DSP advertising, are quickly adopting these solutions.

To begin with, what is a DSP?

Marketers can buy digital advertising via demand-side platforms (DSP) through automation with minimal friction, meaning they can reach and scale customers. Direct integrations with publishers, supply-side platforms (SSPs), and ad exchanges are all options that advertisers have to access publisher inventory. 

DSPs enable marketers to set target and bid rules for evaluating ad inventory in real-time — some DSPs can evaluate thousands of ads per second. The DSP bids on advertisers’ ads when it detects ad impressions that the marketer desires. The DSP strives to get those ad impressions along with other marketers who have the same goal. DSPs serve one of several advertisements corresponding to the campaign to the marketer with the highest bid. 

A vast number of impressions can be delivered in real-time due to programmatic inventory sources. Due to the fact that multiple ad boxes may be present on a web page, multiple advertisements will be auctioned every time one load. Possibly you have already triggered hundreds of advertising auctions through DSPs.

Small marketing groups can easily buy large volumes of advertising impressions through a DSP. 

How Does Amazon DSP Advertising Work?

Amazon’s demand-side platform allows advertisers to promote their products, services, or brands effectively online with display, video, and audio ads. 

Advertisers can gain exclusive access to audiences across Amazon-owned sites by utilizing Amazon DSP advertising. Amazon Publisher Services and third-party exchanges provide inventory for sites such as IMDB and leading publishers. 

The Amazon Advertising service is available to brands that sell products on Amazon and those that do not. Through the service, brands have access to exclusive audiences in order to expand their reach both on and off the site. 

What is the best way for brands to begin using Amazon DSP?

It is important to revise your Amazon advertising strategies once you have optimized all the other ad types. If your company spends at least $25-30K per month on Amazon advertising (depending on the category), we recommend integrating Amazon DSP into your strategy. 

Our recommendation is to start slowly with dynamic ads and figure out what audiences and placements are most effective for you. 

Benefits of the Amazon DSP Advertising

The widespread misunderstanding that DSP advertising carried by Amazon is simply a synonym for Sponsored Display Advertising has been dispelled by highlighting the distinctive features of DSP. Let’s examine the benefits of Amazon’s DSP in order to grasp why these ads are so compelling.

Options for unique targeting

A number of targeting options are available through Amazon DSP compared to Amazon PPC ads, including In-Market, Lifestyle, Remarketing, Contextual Audiences, and Audience Lookalikes. A list of more targeting options is extremely valuable for Amazon sellers since they are aware that it is essential to reach a larger audience. 

Taking your business beyond national boundaries

On top of that, DSP users can show advertisements to relevant prospects both within and outside of Amazon. In addition, they can create cross-channel campaigns in order to encourage sellers to participate in cross-channel shopping. Therefore, customers will be able to view advertisements wherever they are and be directed to platforms from where it is possible to buy the products advertised.

 Access to the Amazon DSP inventory

In their opinion, access to the DSP inventory of Amazon is the key to success. Amazon gathers data from three sources in order to support its DSP targeting techniques with accurate information concerning customer behavior: 

  1. Properties managed and owned by Amazon
  2. Amazon Publishing Services
  3. Exchanges between third parties. 

In addition to such a large amount of data, advertisers also gain insight into consumer interest, which, when properly arranged, can allow them to target the appropriate groups.

Performance analytics for audience insights and campaigns

Users of the Amazon DSP platform are thankfully reap additional benefits from this type of advertising. Data regarding audience insights, campaign performance, and the purchasing behavior of DSP advertisers are accessible to advertisers. The report provides a detailed picture of customers’ actions before, during, and after campaigns. Metrics included in the reporting are the number of items added to the cart, the total amount spent, etc.

It is possible to reach an advertiser’s target audience and is the most effective method of determining where customers end their search before committing to a purchase.

 Specifications for Amazon DSP Ads

As the term, Amazon DSP advertising represents a wide variety of ads delivered across various platforms and devices. The dimensions and specifications of Amazon DSP ads are a requirement for DSP advertisers. It outlines all required details, creative guidelines, as well as the sizes of ads and formats of ads for each device on which advertisements appear.

Increasing brand awareness

Because of the importance of branding, the paragraph on Amazon DSP advertising benefits should not be the last one on the list. DSP is equally focused on generating brand awareness as Sponsored Brands. 

Customers might forget about an item they wanted to purchase, and they will need a reminder because, for example, they might not return to Amazon for a while. In contrast with Sponsored Brands, DSPs are capable of reminding your audience about your brand. In addition, it allows you to promote your brand on third-party platforms to a new audience that has been researching the web for the products of your competitors.

Campaign optimization

Advertising agencies can take advantage of Amazon’s DSP in order to automate or manually optimize campaigns according to specific objectives. The automatic optimization function updates bids according to the objectives of the campaign so that ads are displayed on the most relevant sites using the most appropriate formats. 

Additionally, every impression is automatically analyzed against a set goal, employing up to 500,000 predictive models related to the shopping patterns of Amazon customers.

Advertisers also can manually update many aspects of their campaigns, including a budget, supply, audiences, bids, and frequency caps. Advertising alternatives include standard images, videos, third-party ads, and display ads featuring e-commerce creativity.

Types of Amazon DSP ads

Amazon DSP advertising consists of four types of advertisements. According to the seller’s objectives, they can choose which type of advertisement is most suitable.

The static ad type

The purpose of static ads is to prompt immediate action from the people who view them. A click on the advertisement will direct customers to either your website, a listing of your products or any Amazon Brand Stores that may exist. There are several key features of static advertisements, including a call-to-action, a picture, a logo, and a brand name.

Type of video advertisement

Your company website, or a product detail page on Amazon, is the destination of a video advertisement. The power of video advertisements lies in their capacity to illustrate the capabilities of products, their relevance to specific situations, and how people use them.

Dynamic Advertising

Because of its targeted audience, Amazon automatically chooses the content for its dynamic advertising requirements. Having this solution is extremely helpful for advertisers who don’t have time to examine DSP reports and determine which creative assets will effectively promote product sales.

Over-the-top video advertising (OTT)

Ads such as these are created specifically for display on televisions, such as the Amazon Fire TV Stick. The content of these advertisements does not link to product details or websites. Instead, they are intended to increase brand awareness.

Costs associated with Amazon’s DSP

You may be surprised to learn that the managed-service option of Amazon’s DSP requires that you have an advertising budget of $35,000. These costs are particularly shocking to advertisers accustomed to PPC advertisements. Ad formats, placements, and geographical locations all have an impact on the cost.

Comparison of Amazon DSP and Sponsored Display Ads

We have finally reached the conclusion that it’s time to explain, in layman’s terms, the differences between Sponsored Display Ads and Amazon DSP? It’s not so easy to tell that they are different just by looking at them. However, there is some resemblance between them.

One of the most important distinctions of Amazon DSP advertising is its targeting in addition to its costs. There are many options available for DSP targeting, however, Amazon DSP allows advertisers to choose between targeting by-products and audiences. Moreover, Sponsored Display offers fewer placement opportunities in comparison to Amazon DSP advertising.

How to start advertising on Amazon DSP?

It is imperative to make a choice between Managed Service and Self-Service before launching an Amazon DSP advertising campaign. 

A managed service is the best option if you would like Amazon to handle the management of your DSP. A minimum of $35,000 in advertising is required in this case. The consulting option provided by Amazon provides a variety of insights, appropriate data, standard services, and advertising plans through a DSP.

Self-service is the alternative proposal. We mean delegating responsibility to an Amazon advertising agency certified by Amazon by self-service. One of the major advantages of this option involves the expert management of the advertising process. Additionally, this takes the burden of responsibility for advertising performance off the shoulders of the advertisers.

Therefore, you should decide what course of action you will take and follow through with it.

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