With the influx of online businesses, it is becoming increasingly difficult for brands to reach and engage with potential customers. Businesses are looking for platforms and software that are designed to use automation to programmatically purchase advertisements. One such platform is Amazon DSP.
The Amazon demand-side platform, more commonly known as Amazon DSP, is gaining popularity with more and more advertisers switching from traditional Amazon advertising. Programmatic advertising is the future, and several brands are making use of platforms like Amazon DSP to market their products.
What is Amazon Demand Side Platform (DSP) Advertising?
Simply put, Amazon DSP is a system that connects advertisers with customers through programmatic ad purchasing. Brands can essentially purchase video, audio, and display ads, which are displayed across the wide network of Amazon. The digital advertising revenue of Amazon reached approximately $31.8 billion in 2022. This gives the company a competitive advantage in terms of possessing data about what, how, when, and why customers purchase specific products.
Even though this inventory data is kept anonymous, Amazon allows advertisers to use it to form efficient marketing strategies. Brands can sell their products both on and off Amazon because the Amazon DSP feature is not just limited to Amazon sellers.
Where do Amazon DSP Ads Appear?
Amazon’s network is widespread ranging from websites and applications to devices, and Amazon DSP ads will appear on all these platforms. This means that brands will be able to target a wide range of customers. The following Amazon platforms are the most common ones:
- Amazon’s official website (homepage, product page, search page, reviews page, and Live page)
- Applications owned by Amazon
- Amazon devices including Kindle, Amazon Echo, and Fire TV
- Affiliate websites that fall within Amazon’s vast network
- Any websites owned by Amazon like IMDb and Goodreads
What Ad Types are Available in Amazon DSP?
There are currently four ad types that are available in Amazon DSP:
1- Dynamic
Dynamic ads make use of machine learning to optimize the ads automatically depending on the audience. This is beneficial as the ads displayed to customers will be based on their purchasing behavior. For example, if an individual tends to read product reviews before purchasing a product, the ad displayed to that individual will be a review of an existing customer. It should be kept in mind that this option is only available for Amazon listing pages, so it is not beneficial for brands advertising their website.
2- Static
Static ads are free from any dynamic features, which means that you will need to provide specific calls to action if you want to market your product. Even though these can be effective, you need to combine them with other strategies to successfully reach and engage with customers.
3- OTT
Over-the-top video ads, more commonly known as OTT, are designed to be displayed specifically on TV sources like Amazon’s Fire TV. Just like television commercials, these full-screen ads are displayed for viewing purposes. They are not clickable like the ads we see on websites or apps.
4- Videos
Amazon DSP can display video ads both in-stream and out-stream, and you can use them for advertising both Amazon product detail pages and your own website. Videos are a great way of targeting the emotions of viewers and conveying your brand story, so make sure you spend a considerable amount of time and effort crafting its content.
How does Amazon DSP Work?
Amazon DSP advertising works in two ways, and you can select one depending on your specific needs and the budget you are willing to spend on advertising. The details of each strategy have been discussed below.
Managed-Service
1- Managed-Service
If you opt for the managed-service option, you will essentially allow Amazon to handle all the ad campaigns for you. All you need to do is reach out to the Amazon team and discuss your specific goals with them. They will craft an advertising plan that is most suitable for your business, and you will be given access to the necessary data and consultation. In order to select this option, brands need to pay a minimum of $35,000 USD to gain access to the data.
2- Self-Service
Conversely, the self-service option gives you full control over your advertising campaign. Here, Amazon won’t be handling your DSP. You will be given access to an authorized agency that will design the advertising campaign for you. The benefit of this service is that you will have full control over your DSP campaign and won’t be limited to what Amazon managers decide for you. The only drawback is that this option is expensive, and is only available for brands that can spend a minimum of $100,000 USD per month.
How To Use Amazon DSP Effectively?
In order to use Amazon DSP effectively, you will need to make some preparations beforehand. For example, make sure that the images you plan to use are high-quality and that the text included in the ad is fully optimized. Keep demographic trends, temporal trends, and brand engagement in mind while designing your ads.
Benefits
Amazon DSP has a lot of benefits which give it a competitive advantage over other advertising platforms. The most compelling benefits for brands are as follows:
- Access to unique data that can be used to enhance marketing strategies
- Developing brand awareness by strengthening existing presence
- Increasing purchase behavior by re-engaging with prospects
- Boosting consideration among key competitors
Trends and Recommendations Moving Forward
Advertising is evolving every day and Amazon Advertising has marked an impressive growth in 2022. Ad Optimization for Voice Search can be introduced by Amazon. Currently Amazon attribution window for Sponsored Brand Ads is 14 days which means it takes 14 days for Amazon to show real data in reporting form. In coming days Amazon can be expected to show ads performance in almost real time which will help advertisers optimise ads more effectively and effectively.
