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What is Amazon DSP and How to Use It?

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Amazon DSP offers a unique opportunity for brands to advertise directly to their target customers. But what is it, and what makes it different from Amazon’s other advertising solutions?

That’s exactly what we will be answering today. 

What is Amazon DSP? 

Amazon DSP, Demand Side Platform, is how you can buy those display ads you see everywhere. These banners and video ads vary in appearance but have incredible reach. That alone makes them something you should consider in your next marketing campaign. 

These ads are able to reach target audiences in specific places and times to encourage conversions.

Plus, once these ad campaigns collect enough information, DSP providers can optimize the campaign to perform according to Amazon DSP campaign goals. 

What’s the Difference Between Sponsored Display Ads and DSP? 

So, what’s the difference between Amazon DSP and Sponsored Display Ads?

First of all, Sponsored Display Ads are self-service, have no minimum, and have a low barrier of entry.  They’re also remarkably easy to build. So, what’s the downside? The answer is that they lack the precision that makes an effective ad campaign.

In contrast, Amazon DSP ads give brands significantly more control over their campaigns and provide a more powerful alternative to Sponsored Ad Displays. With DSP, brands decide who, what, where, and even when your ads appear. This is what makes it stand out among Amazon’s marketing solutions.

How to Use Amazon DSP to Reach Your Target Customer 

Before we discuss how to use DSP, we need to understand what the goals of your advertising campaign are, and who your target audience is. Figuring this out first will help you communicate your goals with your DSP provider for a more effective ad campaign. 

Always remember, that targeting your ideal customer is a key component of an ad campaign. This is the customer who will value your product the most and resonates with your brand’s purpose.

For a more in-depth guide on identifying your ideal customer, take a look at our guide on making a listing that stands out by keeping the customer in mind

From there you can consider the customer’s journey with your ideal customer in mind. 

  • Awareness – The customer isn’t engaged. That means you first need to make them aware of your brand. Measure awareness by searches and click-through rates.
     
  • Consideration – The customer is considering what they want. They’re engaged, but they’re not certain. You can measure consideration by detail page views and total detail page view rate.
  • Purchase intent – Similar to consideration, the customer is uncertain. However, they are now intending to make a purchase, and are comparing you and your competitors for the best value. The metrics for purchase intent include add-to-cart and total add-to-cart rates. 
  • Purchase Evaluation – The customer at this stage is reviewing the product before making a purchase in its category. 
  • Purchase – The customer has finally purchased and converted on your Amazon listing. Which you can, of course, measure by purchases.
  • Loyalty – More valuable than the purchase, customers at this stage have not yet subscribed or saved your offers to return again. 

It is vital to take every step of this journey into careful consideration. What does it take to get your ideal customer to continue on this journey with you? What does this say about your campaign goals? Answer that, and you’re ready to begin with DSP. 

Finally, it’s time to start with DSP.

The best part of this is the ability to take relevant DSP ads and put them in front of your targeted audience. 

We recommend that you begin your journey with DSP in small steps. Run tests on Amazon shoppers who have already viewed and/or purchased your product. From there you can tailor your DSP ad campaigns accordingly to the results you garner from these tests. 

What Else You Need to Know

Before you jump both feet into Amazon DSP, there’s some important information you need to know.

First off, you do not own any of the data through DSP as it’s an entirely separate platform from your Seller Central portal. What’s more, you will typically need to have Amazon run your DSP which usually incurs a $35k spending minimum.

Alternatively, you can work with another DSP provider that may offer lower spending minimums.

And as we discussed before, always know your Amazon ad goals before you commit to DSP. An unfocused ad campaign is certain to have a poor ROI.  

Conclusion

A poorly executed ad campaign can lead to a significant loss for any brand. That is why it is important to understand your goals and to understand the platform you’re interested in using, such as Amazon DSP. You don’t have to go at it alone. 

Contact us today for help managing your Amazon Marketplace and getting the edge you need. The services we provide range from education to the total handling of your Amazon profile. This frees you to work on the big picture. 

What is your experience with DSPs? 

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