How to effectively scale your advertising with Amazon DSP

Amazon advertising is now as important for promoting your products as Google and Facebook – and might even overtake them. Brands need to understand the ins and outs of Amazon advertising in order to stay competitive. Amazon has a plethora of acronyms (ACoS, AMS, AAP) and they might be overwhelming to those unfamiliar with the ecosystem. One of these platforms is known as DSP, and if you want to serve relevant video or banner ads to your target audience then you want to make sure you’re familiar with Amazon DSP.

Let us give you some brief context to simplify any confusion you might have. There are two main types of advertising options available to brands on Amazon advertising:

  • Search advertising (on Amazon’s website)
  • Display advertising (through Amazon)

Recently, both the search and display sides of Amazon Advertising went through a rebrand. Now, all platforms are under the massive umbrella known as “Amazon Advertising.” AMS is called “Amazon Ad Console” and AAP is now called “Demand Side Platform” or DSP.

But what does Amazon DSP do? And how can you incorporate it into your marketing strategy?

Amazon Demand Side Platform (DSP) in a nutshell 

Amazon DSP is an advertising platform for advertisers that lets brands advertise to potential customers efficiently and effectively at scale. Amazon’s unique advantage is that it lets advertisers programmatically buy display and video ads using customer targeting data only available through Amazon.

The ads created and managed through Amazon DSP can be set up to appear not only on Amazon.com like they do on the Amazon Ad Console, but also across websites, social media sites, mobile apps and/or online video channels. Amazon DSP is the only way to access advertising inventory exclusively available on Amazon’s collection of owned online properties and devices like Amazon Kindle, Fire TV, IMDb and more.

 Most of the advertising options available on Amazon DSP use a cost-per-thousand (CPM) model. Instead of buying clicks, the focus is on paying to reach a targeted audience and serving that audience your relevant ad. A cost-per-view (CPV) model is used for video ads. It’s a similar type of model to CPM, but is designed specifically to ensure advertisers are paying for views of their video ads. A DSP media buy is the only way brands can accurately and efficiently target Amazon shoppers off of Amazon. This type of advertising helps advertisers build awareness for their brand and products and increases the likelihood that customers will consider buying their brand and products when they purchase on Amazon.

Targeting Options with Amazon DSP 

With Amazon DSP, you can reach shoppers anywhere in the marketing funnel, including consumers who have shown recent intent to buy your products but haven’t purchased yet.

Amazon DSP allows advertisers to segment audiences through six unique targeting options:

  • Behavioral segments include audiences who have shown specific behaviors such as buying intent in a specific Amazon sub-category in the previous 30 days
  • Lifestyle segments include audiences who demonstrate search and purchase behaviors associated with a common lifestyle such as Paleo Dieters, Outdoorsmen and Environmentalists
  • Contextual segments target audiences based on what they are browsing in real-time to show ads that are contextually relevant
  • Re-marketing segments re-engage shoppers that have searched for, viewed and/or purchased your products or similar products
  • Audience Lookalike segments include audiences with similar shopping behaviors as other specific audiences such as your current customers
  • Advertiser Audiences segments leverage a Brand’s data such as information from a CRM database, a hashed email list or a website page with a tracking pixel

Amazon DSP uses these segments to target specific audiences. This means that if someone looked at your Amazon page, but did not purchase, or researched your product on your brand website, or even looked at your competitor websites – you can show them an ad that reverts them back to your Amazon listing to complete their purchase.

Should I Invest in Amazon Ad Console or Amazon DSP?

Amazon DSP campaigns are a great fit for brands who want to create more demand for their brand’s products and drive consistent year-over-year growth through new customer acquisition. Amazon Ad Console campaigns are valuable for companies who want to capture existing demand for the products it sells and drive profitable return on ad spend.

Both Amazon Ad Console activities and Amazon DSP are excellent platforms alone, but together, they create enormous value. When you invest in both, you are covering the entire sales funnel: re-engaging interested shoppers, reaching more high intent customers and accessing new creative formats. 

Wrapping it up

Amazon DSP is an invaluable tool for marketing your products to a relevant and engaged audience, regardless of your industry type. Thanks to Amazon’s targeting capabilities, you can effectively increase brand awareness and generate brand recall over time as well.

If you are an Amazon Seller looking to automate your video and image production for scaling up advertisements, you should check out Rocketium.

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