What is Amazon DSP?
Amazon is one of the largest online marketplaces in the world. With data on a vast number of transactions and a ‘captive audience’ of users with high purchase intent, it’s no wonder that Amazon’s advertising capabilities have become increasingly popular in recent years.
One of the most important facets of Amazon’s advertising platform is the Amazon DSP – but what is the DSP, and how can it be leveraged to the best effect?
Understanding Amazon DSP
The term Amazon DSP actually refers to the Amazon Demand Side Platform. It is the rebranded name for the Amazon Advertising Platform, and was renamed in 2018 following a major overhaul.
Located in Amazon Advertising Services, the Amazon DSP gives advertisers access to a range of programmatic advertising options which encompass both video and display. In addition, using the Amazon DSP users are able to reach and engage with their customers both on the Amazon platform and via other trusted entities.
Whilst one half of the newly rebranded Amazon Advertising is dedicated to PPC (pay per click) campaigns, the other half is dedicated to paying for impressions via Display ads. This is where Amazon DSP can help.
Amazon DSP allows users to access audiences via a range of different sources, including third-party websites, apps, Fire TV, IMDb, Kindle and the Amazon website. Each of these aspects of the DSP create a comprehensive advertising platform which encompass the following formats:
- In-stream video advertising
- Text/image ads
- Mobile banners
- Mobile interstitial ads
- Desktop display ads
Each of these formats can be used to great advantage by advertisers and brands who are eager to make a big impact.
Amazon DSP is ideal for anyone who wants to programmatically buy display and video ads on a large scale. This is due to the extensive capabilities which are offered by the platform. In addition, Amazon DSP allows users to expand their existing reach far beyond the established confines they may expect just from using PPC ads.
It is also suited to customers who are not selling on Amazon, yet want to gain access to Amazon audiences. With so many people shopping on the platform and eagerly looking for new finds, it makes sense that the platform should be considered as so pivotal to the plans of advertisers who want to leverage this vast online marketplace.
Who manages my Amazon DSP ads?
You have two options when using the Amazon DSP. Firstly, the ads can be managed by Amazon – helping to take some of the stress and anxiety away from your advertising activities.
Secondly, they can be managed via Enterprise Self Service (ESS), allowing an agency of your choice to access your Amazon account, monitor activities and carry out key actions. It’s crucial to note that brands need to work with an agency in order to access the latter option, as they cannot go at it alone.
How does it work?
The Amazon DSP is a platform for programmatic display advertising, which uses technology to forge more efficient display and video advertising solutions. It can be used for a variety of different reasons, depending on the unique needs of the client. This helps to make Amazon DSP a more flexible and versatile solution for a wide range of advertising projects and problems.
Key areas where Amazon DSP can be utilised to great effect include:
- Generating awareness
The need for brand awareness is the first step towards gaining more custom. These actions are aimed squarely at improving your brand visibility, and will help brands to understand more about the audiences and marketplace at their fingertips.
- Encouraging consideration
Engagement is one of the most important aspects of any customer journey, as it is here that you’ll be able to appeal to your target audience in increasingly meaningful ways. Amazon DSP can be utilised at this stage to fuel the consideration of your product over a competitor, by highlighting the key positive differentials between two otherwise similar propositions.
- Boosting new purchases
Purchases can be encouraged by re-connecting with customers and prospects via re-targeting ads. This gives your brand the opportunity to show why a customer was interested in buying with you at the outset.
The advertising format is also ideal for customers who are demonstrating high intent to purchase yet have not yet bought from you – it allows brands to highlight the best features of their offering and appeal to specific audiences in an appealing way.
Retargeting
One of the most significant areas of the Amazon DSP is its retargeting capabilities, which allow advertisers to engage once more with customers who have already demonstrated interest in your products.
These ads can be created in a variety of different ways:
Similar products – this form of remarketing allows you to access shoppers who are browsing products which are similar to your own, and target them with ads suited to their needs.
Brand halo – this form of remarketing is specifically targeted at shoppers who have viewed products from the brand, suggesting they are already demonstrating purchase intent not just for the product, but for the brand itself.
Product remarketing – these ads allow advertisers to retarget customers who have viewed promoted products but who, for whatever reason, did not make a purchase.
Pixel based ads – these adverts are aimed at shoppers who have visited the brand website, rather than simply Amazon.
Audiences and Prospecting
The Amazon DSP gives brands the opportunity to target customers using the categories of ‘lifestyle’ and ‘in market’. This categorisation is defined because audiences on the Amazon DSP can differ. Advertisers may wish to target customers by the category of lifestyle (ie. those sharing a specific interest), or in-market audiences (those who are likely to purchase, based on recent prior behaviour).
These approaches have differing benefits and drawbacks, but can be used to great effect in successful campaigns. When utilised effectively, these features allow advertisers to gain great value and impact for the brands they work with.