With increasing competition on Amazon Canada, brands must optimize their advertising strategies to effectively target their audience and grow their reach. If you’re just starting to advertise your brand, it’s important you know about all the ad types Amazon has to offer such as Demand-Site Platform (DSP) and Amazon Sponsored Display.
Amazon DSP and Sponsored Display Ads are two key options you should consider using to expand your advertising efforts both on and off the Amazon platform. Each ad type operates differently while offering distinct benefits. To get the most out of each option, it’s important you understand the key differences and advantages that come with each type.
13 Things You Need To Know About Amazon DSP and Amazon Sponsored Display Advertising
1. DSP can be used for brands that do not sell directly on amazon
Amazon Sponsored Display advertising is only available for brands on the Amazon platform. Amazon DSP however can send traffic to external websites, if that suits a seller’s goals. In fact, DSP ads can be bought by anyone, not just Amazon sellers.
2. DSP is not for beginners
Amazon Canada DSP requires a minimum monthly spend of $10,000. Therefore, this Amazon advertising option is not ideal for small brands or beginner e-commerce sellers. For those that have the money and want to expand their advertising efforts, DSP offers advanced features that may help grow their brand in new and exciting ways.
3. Cost Structure differences
DSP uses a cost per mille (CPM) cost structure, thereby charging per 1000 impressions. Alternatively, Amazon Sponsored Display advertising uses a pay-per-click (PPC) cost structure. CPM campaigns are generally best for generating brand exposure whereas PPC ads are designed to drive traffic to your products.
4. Advertising funnel considerations
Amazon DSP and Amazon Sponsored Display offer enough customization together to create a full-funnel advertising strategy that leverages both advertising types. Essentially, you can cast a wider net with DSP by building brand awareness and then create more targeted campaigns that include calls to action with Sponsored Display.
Also, if your advertising strategy calls for it, you can retarget individuals using a combination of DSP and Sponsored Display to maximize your conversion potential.
5. Sponsored Display Ads have limited customizability
Sponsored Display ads are automatically generated to deliver results. That is, Amazon Sponsored Display advertising does not offer any real opportunities for customization. Consequently, however, this is a lower maintenance option for those that prefer simplicity when it comes to ad creation.
6. DSP offers full control of creatives
For those that want full control over their advertising creatives, Amazon DSP may be the better choice. This programmatic advertising option provides ads that can be fully customized to encapsulate your brand’s vision.
7. DSP has a robust segmentation feature
DSP allows you to build custom targeting segments using Amazon’s own demographic and user data. As such, Amazon DSP in Canada allows your advertising to be more precisely targeted so you can optimize your conversions.
8. Amazon Display ads have 3 different targeting options
Below, we list the three targeting options for Amazon Sponsored Display ads and what they mean for your advertising.
a) Product Targeting
This style of advertising promotes your products among those that are similar to yours to accurately target people looking for those products.
b) Audiences: Views Remarketing
This type of paid advertising suits those looking to retarget high-interest audiences, i.e. the types of people your product is designed for.
c) Audiences: Interests
This option helps introduce your product to your target audience and build brand awareness.
9. On Channel & Off channel
Both Amazon Canada DSP and Amazon Sponsored Display can appear as on and off channel placements. Conveniently, you can use both to generate traffic to your products from outside of the Amazon platform. That said, however, DSP does offer more control over your placements and creatives.
10. DSP is a programmatic advertising program
Programmatic advertising is the use of automated technology for media buying. This style of advertising is much more efficient and often much more effective than manual digital advertising. Essentially, programmatic advertising uses data insights and algorithms to serve ads to the right user at the right time and price.
Amazon sponsored display ads appear on product detail pages, review pages, search result pages, and on the app.
Amazon DSP ads purchased programmatically can be displayed across different platforms beyond Amazon. These include social media, other sites, video channels, streaming services, apps and more. DSP ads can also include custom display ads, promotional videos, audio advertisements and even dynamic e-commerce ads.
12. Amazon DSP has a managed option
Amazon offers the option of assigning a team of DSP experts who will be responsible for managing your account and optimizing your advertising. However, this option doesn’t come cheap. To reap the benefits of managed Amazon advertising, you’ll be required to fork out a minimum monthly ad spend of $35,000.
Because of its costs, managed Amazon Canada DSP is not a very accessible option for less established brands and businesses.
13. Learning Curve Differences
Running sponsored display ads are fairly easy to launch, manage and optimize through Vendor and Seller Central. Amazon DSP on the other hand is much more complicated and typically demands the help of professional advertisers. Luckily, there are many Amazon agencies that offer consultations with a DSP expert.
An Amazon advertising agency like sequencecommerce.com can help you launch DSP campaigns and learn how to get the most out of this advertising method. And, although you may be able to learn Sponsored Display on your own, you can still benefit from expert advice when it comes to using this ad type as well. With experience and expertise on their side, Sequence Commerce and other Amazon PPC advertising consultants can help you maximize your conversions from Sponsored Display.
Both DSP ads and Amazon Sponsored Display advertising can be effectively used to target your desired audience and drive traffic to your listings to grow your brand. However, each style is better suited for different tasks, with DSP being prohibitively expensive for many new sellers. That said, DSP offers improved customizability and programmatic algorithms to help you see more success with your campaigns.
Whether you choose Amazon sponsored display advertising, Amazon DSP ads, or a combination of both, you’ll benefit from hiring an amazon agency or marketing consultant to get your advertising efforts off the ground. With the help of experienced advertising specialists, you’ll see the results you desire no matter what ad type you prefer.