Want to elevate your Advertising Strategy?
Are you facing challenges and difficulties to stand out in your brand?
Here is the Good News!
Target specific audiences and increase your brand visibility with Amazon DSP advertising.
Amazon Demand side platform is the best option for advertisers to connect with shoppers at any scale, on any device, even on and off Amazon through programmatic ads purchasing.
With Amazon Demand Side Platform, advertisers can create compelling video and display ads and leverage Amazon’s unmatched shopping data to reach highly qualified audiences at all customer journey stages by automating online advertising purchases on Amazon’s extensive and exclusive advertising space.
Amazon demand side platform can help reach new and existing audiences.
Amazon Advertising DSP allows you to align your brand message with your end-to-end strategy.
And its capabilities are only expanded when used with Amazon Marketing Cloud.
Part 1: The basics: Amazon DSP advertising
This part of our comprehensive guide discovers What is Amazon DSP Advertising, How Amazon DSP works? And how much it charges?
What is the Amazon demand side platform (DSP)?
The Amazon Demand Side Platform (DSP) is an automated advertising tool that allows companies to purchase digital advertising on a cost-per-click (CPC) or cost-per-thousand-impressions (CPM) basis.
It is a powerful advertising platform that enables advertisers to reach target audiences across various media channels, including websites, mobile apps, digital outdoors, and social networks.
Amazon Demand Side Platform allows advertisers to access the same high-quality inventory as other leading digital advertising platforms but at a much lower cost.
Two of the most famous options for digital advertising are Amazon DSP and Sponsored Ads.
Amazon Demand Side Platform is an automated advertising platform that allows brands and businesses to purchase display advertising across the internet, including the Amazon Advertising Network.
It will enable advertisers to target specific audiences with tailored ads and access detailed analytics of their campaigns.
Sponsored Ads are a form of advertising available through Amazon Advertising.
They allow businesses to promote their services on Amazon.com and other Amazon websites and apps.
Unlike Amazon Demand Side Platform , Sponsored Ads are not available on other websites or apps and are only available on Amazon.
The key difference between Amazon DSP and Sponsored Ads is where the ads are placed.
Amazon Demand Side Platform allows advertisers to purchase display ads online, while Sponsored Ads are only available on Amazon.
Another key difference is the targeting options available. With Amazon advertising DSP, advertisers can target audiences based on demographics, interests, and behaviors.
With Sponsored Ads, advertisers can target shoppers based on their search history, purchase history, and product reviews.
Why choose Amazon demand side platform for advertising?
According to a study, it has proved approximately $18 million in Amazon advertising DSP spend in the US.
There are four major benefits of using this such as:
Advantage 1: Amazon Demand Side Platform increases advertising performance for sponsored products
Amazon Sponsored Display ads work best when used in conjunction with Amazon DSP
An analysis found that sponsored ads were more effective when used in combined with Amazon DSP display.
Supported had 19% higher conversion rate Product ads are offered with Amazon DSP display products only ads used by myself.
Likewise, the ROAS for Amazon Sponsored Display ads was 3% higher than used with Amazon Demand Side Platform.
Advantage 2: Video ads on streaming television (STV) and Amazon Demand Side Platform account for a significant portion of mid- to long-term purchases
STV ads account for the largest share of mid- to long-term conversions, followed by Amazon DSP
Although they are part of Amazon Demand Side Platform, we placed streaming TV (STV) ads in a separate segment for this part of our analysis to better understand what type of customers these ads serve.
We found that 70% of STV purchases occurred within 3-14 days of the first ad interaction, followed by 33% of DSP purchases (excluding STV) and only 9% of Amazon Sponsored Display items.
These results reflect that DSP display and STV ads are more focused on brand awareness and new brand sales than Amazon Sponsored Display products and are an effective way to create demand in the medium to long term.
Advantage 3: Streaming video ads (STV) have a higher percentage of new brand customers than other types of Amazon ads
Customers who have seen an Amazon DSP STV ad are more likely to be new than those who have yet to.
Advertisers looking to attract new customers to their brand and product portfolio often use the Amazon Demand Side Platform to display video ads on Streaming Television (STV, also known as OTT).
These results suggest that advertisers using STV ads with Amazon Demand Side Platform are more likely to acquire new customers than those not using STV.
Advantage 4: Amazon DSP ads are very effective
Amazon Demand Side Platform ads are comparable to sponsored ads and, in some cases, even better.
We found that Amazon’s DSP ROAS was 43% higher than sponsored ads, 9% higher than sponsored brands, and slightly lower (-4%) than Amazon Sponsored Display ads.
Note that our ROAS analysis used standard attribution models for each ad format: “last click” conversion for sponsored articles and “View-through” conversion for Amazon DSP.
How much does the Amazon demand side platform (DSP) cost?
Amazon DSP advertising costs depend on several factors, such as the service model, the size of the ads budget, and the country you will use it from.
Minimum cost of Amazon DSP advertising (Amazon)
Self-service: $12000 per month
Managed-service: $35,000-50,000 per month
Additionally, a self-service or managed-service provider will typically charge a minimum monthly fee for the minimum DSP ad-spend necessities.
Part 2: Amazon demand side platform (DSP) inventory, targeting, and creative types
Amazon demand side platform provides a variety of different, creative, and inventory forms to help them to get success in their goals.
Amazon DSP advertising inventory:
Let’s take a look at Amazon demand side platform advertising inventory.
What is Amazon advertising DSP inventory?
Ad inventory refers to the available advertising space and placements where marketers can display their ads using Amazon Demand Side Platform.
I. For instance, Amazon Owned and Operated mobile (AZOO MB) is an example of an ad inventory type.
A supply source refers to the specific exchange or site where your ads will appear. For AZOO MB, examples of supply sources include the Amazon mobile app, Amazon mobile web, and IMDB mobile web.
Types of Amazon demand-side platform inventory
The Amazon Demand Side Platform inventory helps you reach Amazon audiences at scale across devices like desktops, laptops, phones, and streaming devices. The inventory types offered by Amazon DSP include:
Amazon-owned & operated mobile (AZOO MB), desktop (AZOO DS), and mobile app (Mobile AAP): exclusive inventory from Amazon retail sites and O&O properties like IMDb.
Amazon Publisher Services (AZPS): inventory from top publishers through header bidding integrations with Amazon Publisher Service.
Third-party exchanges (3P): inventory on sites not owned or operated by Amazon but accessible through leading businesses like Google Authorized Buyers.
When setting up your Amazon DSP advertising campaigns, it is recommended to use various inventory types. This approach provides scale to achieve campaign goals and diversifies ad formats and content for all customer touchpoints.
Additionally, utilizing different supply sources allows you to identify the best-performing supply source and optimize your campaign accordingly.
Targeting Types on Amazon Demand Side Platform
Amazon Demand Side Platform offers a variety of targeting options to reach the right audience. Advertisers can select from the following targeting types:
With demographic targeting, advertisers can target customers based on age, gender, marital status, household income, and more. This type of targeting allows advertisers to reach customers with tailored messages relevant to their interests and needs.
Interest targeting allows advertisers to target customers based on their interests. This type of targeting is great for reaching customers interested in specific products or services.
Retargeting allows advertisers to reach customers who have previously interacted with their brand. This type of targeting is great for increasing brand awareness and driving conversions.
Contextual targeting allows advertisers to target customers based on their viewing content. This type of targeting is great for reaching customers interested in a particular topic or genre.
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Creative Types on Amazon DSP
Once an advertiser has selected their targeting types, they can choose from the following creative types to reach their target audience:
Display ads are static or animated images displayed on websites and apps. These ads help to increase brand awareness and drive conversions.
Video ads are short videos that are displayed on websites and apps. These ads are great for increasing engagement and driving conversions.
Mobile ads are display or video ads that are displayed on mobile devices. These ads are great for reaching customers on the go and driving conversions.
Sponsored ads are display or video ads on Amazon websites and apps. These ads are great for increasing visibility and driving sales.
Sponsored Display Ads
Amazon Sponsored display ads are display ads that are displayed on Amazon websites and apps. These ads are great for increasing visibility and driving sales.
Part 3: Goals, campaign setup, optimization, and evaluation
Setting goals for your Amazon demand side platform campaign
Before setting up your campaign, it’s essential to have a clear objective.
This is true because you can use Amazon Demand Side Platform to target any area of your funnel or multiple locations simultaneously and because specific build, inventory, and targeting types are better suited to particular goals than others.
For the purpose of simplicity, here are three objectives that can guide your decision-making when setting up an Amazon DSP advertising campaign:
Brand Awareness: Brand awareness aims to introduce people to your company and its products and ensure that your brand comes first throughout the buying process.
Consideration: A consideration campaign is designed to address an issue, highlight an interest, or answer a question from a consumer so the advertiser can show how your product will meet a buyer’s needs.
Conversion: This is the ultimate goal of every marketer – the sale. You have introduced yourself and informed your audience about your offer.
In the next section, we’ll give you more tips on structuring and optimizing your campaigns around the goals above.
When creating Amazon advertising DSP campaigns, it’s essential to understand the key settings.
There are two options to consider: managed service and self-service.
With managed service, someone else handles the campaign strategy, execution, and optimization.
This suits advertiser needing more expertise or time to develop their advertising strategy.
On the other hand, self-service requires advertisers to possess the knowledge and time to implement and fine-tune their campaigns regularly.
Understanding the DSP Console Views
The Amazon DSP Hierarchy: The Amazon Demand Side Platform consists of different levels, identifiable on the campaign manager page’s top left-hand side. Each group provides specific information, such as advertiser name, order name, line item name, and creative name.
Best Practices for Order Setup
Order Naming Convention: A consistent naming convention for orders helps with navigation and performance analysis. Recommended format: Product_Tactic_GoalKPI_LevelOfFunnel (e.g., Playstation5_Retargeting_ROAS_BOF).
Selecting an Order Goal and KPI: Choose the appropriate goal and key performance indicator (KPI) that align with your creative. Refer to a table provided to assist in selecting the proper KPI.
Order Budget and Delivery
Flight Segmentation: Flights allow budget segmentation by date. It’s recommended to create one flight per month.
Budget Cap: Setting a monthly budget cap ensures optimal pacing and full budget utilization.
Best Practices for Line Item Setup
Create separate line items for each inventory type (Amazon-owned sites, Amazon Publisher Services, and 3rd party exchanges) to gain control over bidding strategies.
Line Item Settings: Specify the creative type, name, category, and inventory for each line item.
Targeting: Choose device type, mobile environment (web vs. app), region, and other relevant targeting options.
Audiences: Utilize pre-built Amazon audiences or create custom audiences based on shopping interactions, demographics, devices, in-market behavior, interests, life events, lifestyle, lookalikes, or third-party data.
Campaign Setup Best Practices
Run Cross-Device Campaigns: Extend reach by targeting shoppers across sites, apps, and devices.
Segment Line Items: Consider breaking down line items by supply source, device, and audience type for better performance measurement and optimization.
Diverse Inventory and Supply Sources: Incorporate a variety of inventory and supply sources to maximize the chances of reaching relevant audiences.
Analyzing Amazon Demand Side Platform campaign performance: Before editing your campaigns, you must understand what works and what doesn’t.
Amazon Demand Side Platform takes time to collect ad performance data due to the platform’s 14-day attribution window.
Below we explain the attribution model, key KPIs, and reports to help you measure performance.
Amazon platform demand-side attribution model
Models determine which ad a conversion event is attributed to. In Amazon Demand Side Platform, conversion events include purchases and other events, such as viewing a product detail page or adding a product to a cart.
The attribution model also determines the duration of the “analysis window,” the length of time an ad can be viewed to be attributed as a conversion event. Therefore, understanding how the Amazon advertising DSP attribution model works are vital to interpreting metrics in Amazon Demand Side Platform reports.
Example of an advertising display
Console reports provide all the basic information about the performance of your Amazon DSP advertising campaigns.
Here you can evaluate campaign metrics at the order, line item, and creative level, with over 100 metrics.
Amazon Demand-Side Platform (DSP) Ad Console – Sample Audience Insights report.
Audience Insights lets advertisers see detailed data about customer purchases and views.
For example, you can see the time between a customer looking at a product page and making a purchase (image above).
Browsing and purchase data can also be broken down by demographic status (e.g.age, gender, household income) and time (time of day, day of the week, weeks/months of the year).
Purchase frequency metrics such as repeat purchase rate, number of repeat purchases, and time between purchases are also available through Audience Insights.
Sample Overlap Ratio With overlay reports, you can discover other audiences that your audience belongs to. This is a great way to gather opportunities to expand your business reach and introduce your brand and product portfolio to new customers.
The Affinity Score measures the similarities between your audience and overlapping audiences.
The higher the similarity value, the more similar the target group is.
Size measures the size of your audience relative to Amazon’s total audience. For example, a length of 6 would mean that the audience represents more than 60% of all Amazon audiences.
In summary, size and similarity scores help identify key complementary audiences interested in your products, opening up opportunities to attract new customers to your brand.
Sample Amazon Demand Side Platform ad segmentation report with the segmentation report, you can assess the performance of directly targeted segments and discover new features that still need to be addressed.
This report can be a great way to identify potential audiences you have yet to reach.
Using the example above, you can quickly sort by click-through rate (CTR) to see that the 50+ active and healthy line items have a CTR of 12.6%.
Amazon DSP ad segmentation report
That’s a good start, but you can also use a PivotTable to group line items by segment and analyze segment-level performance.
Our example shows that the part with the best overall DPVR consists of more than 50 active and healthy products, with a detail page view rate (DPVR) of 26.1%, making them an ideal target audience.
Optimizing your Amazon demand side platform (DSP) campaigns
Once you’ve assessed campaign performance and identified areas for improvement, you can optimize your campaigns using various manual levers and strategies.
Audiences: Ensure the audience aligns with the promoted product. Use overlap reports to analyze audience performance from an advertiser or Amazon-created audiences.
Bids: Set the desired cost per thousand impressions (CPM) an advertiser is willing to pay. Adjust base and maximum bids, allocate more budget to high-performing line items, and increase bids incrementally to scale without overpaying.
Budget: Shift the funding from underperforming to top-performing line items that are also scaling.
Creatives: Optimize by prioritizing high-performing creatives and removing underperforming ones.
Frequency and Frequency Cap: Monitor the number of ad impressions seen within a given period. Adjust the frequency cap to serve more images to under-delivering line items meeting or exceeding campaign goals.
Supply: Consider enabling additional supply sources if a campaign is under-delivering.
Viewability: Measure the visibility of ad impressions based on the MRC definition of viewability.
Viewability Tiers: Adjust viewability settings to serve more impressions to well-performing line items under-delivering by relaxing the viewability threshold.
The Amazon Demand-Side Platform (DSP) is a powerful advertising platform that enables advertisers to access high-quality inventory at a lower cost than other digital advertising platforms.
It also provides access to Amazon’s proprietary data sets, which can be used to gain valuable insights into consumer behavior.
Additionally, Amazon Demand Side Platform’s powerful analytics allow advertisers to track their performance in real time and optimize their campaigns for maximum ROI.