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Last updated on July 31st, 2023
Written by Himanshi Raj
Amazon has developed a program that helps advertisers connect with their audiences. Through Amazon Demand-Side Platform (DSP) and the right Amazon advertising managed-service provider, sellers inside and outside Canada can reach plenty of Canadian audiences.
Let's discover how Amazon DSP in the Canadian region works and how feasible it is as an advertising strategy for Amazon.ca sellers.
The advertising world opens up a whole new set of opportunities for all people. This rule also applies to Amazon, the biggest eCommerce platform in North America and the world. It offers online entrepreneurs many possibilities to boost their businesses holistically.
But wait, you might ask yourself, “What does DSP stand for Amazon?” or perhaps, “What is a DSP for Amazon?”
DSP stands for the “demand-side platform.” It is a type of programmatic advertising that operates by buying and selling digital ads and ad spaces through automation. Audiences are then targeted programmatically, meaning they are intercepted where they are most often found online.
DSP Advertising on Amazon allows sellers and advertisers to publish various types of ads, such as audio ads, video ads, and display ads.
Is there a difference between DSP and Amazon Sponsored display ads? While both are programmatic ads, DSP ads vary in numerous aspects.
| Feature | Amazon DSP | Amazon Sponsored Ads |
Accessibility | Brands selling on and outside the platform can use DSP advertising. | Merchants inside Amazon can use Sponsored Display ads for product and brand promotion. |
Customization | The DSP advertising format allows advertisers to choose how ad features look on the product detail page (e.g., headlines, logos, and images). | Sponsored Display ads don’t allow for ad creative customization. |
Cost structure | Sellers using DSP ads usually pay for every 1000 views on their advertisements (cost-per-mille or CPM). | Advertisers using Sponsored Display ads pay for every click (cost-per-click or CPC). |
Which audiences can Amazon reach with DSP? Is there a limit to whom they can reach?
Amazon can show your DSP ads to people in many places around the globe, even in the farthest reaches of Canada. If your target audience is programmed to select people from Canada, you can start your journey in the Canadian region.
You can take only two options in setting up sophisticated ad automation: self-service or managed-service using a certified Amazon marketing agency.
As always, both setups have their fair share of benefits and drawbacks. It only depends on your specific business needs.
Do you know that Amazon now rivals Google Analytics as one of the leading advertising platforms in the virtual space?
The retail giant had over $20 billion in ad revenue in 2020 and a growth rate of 77% year over year.
Amazon’s ad revenue can be compared to those of Pinterest, Snap, Twitter, and Roku combined, and it will still be over twice as huge.
The rapid sprawling growth of Amazon as an advertising platform can be attributed to its hallmark as an online shopping website coupled with its long list of subsidiaries.
Amazon has some resources up its sleeves to ensure that your ads reach your audience at all stages of the funnel, including:
Of course, Amazon DSP is just one of the best demand-side platforms that exist at the moment.
But what really sets it apart from others is its span of reach with the exact audiences you want to target with its vast users that span all across the globe - yes, even outside the US. Canadians use Amazon and its services, so DSP is definitely something you'd want to consider.
Currently, Amazon DSP advertising is available for entities on and off the marketplace, generating hundreds of millions of impressions each day. However, DSP is not cheap, with a starting fee of 35,000 USD for the managed-service option. Again, advertisers are required to pay in CPM.
But is Amazon DSP worth it when all the ad spend is considered?
Amazon is not new in Canada. It is currently the biggest online shopping platform that readily serves its growing population of 38 million. A steady increase in operations was observed following the plan of employing an additional 15,000 Amazon employees and a significant salary hike in the fall of 2021.
Additionally, Amazon is establishing some of its subsidiaries' headquarters in the country, notably Amazon Web Services in Calgary, Alberta, by late 2023 or early 2024.
With this recent news, one can conclude that Amazon is securing its spot as the leading eCommerce retailer in Canada and will continue to be so in the succeeding years. Although many sellers are now looking towards tapping into the Canadian region to reach Canadian audiences, there's still time for you to start and outperform your competitors.
Selling to and advertising in Canada have never been easier through Amazon. If you're from the United States, you don't need a Canadian business license or a bank account to start selling in Canada. Hence, you may take this opportunity to reach Canadian customers. And how do you exactly do this? The next sections reveal them.
Wondering if your brand suits Amazon DSP Canada? More than a specific brand category, the answer depends on various factors, including your goals, budget, and target audience.
Even brands with established names in their product categories and reaping thousands or millions in sales each month must advertise strategically. Gone are the days when PPC-type advertising is the sole way to boost sales.
Instead, you have to take one step further and appear to your audiences, whether they may be searching for your products or considering them (but did not proceed). This is something DSP on Amazon can help you with.
Amazon DSP boosts sales and revenues via brand awareness and audience retargeting features. With Amazon’s ability to reach Canadian audiences on and off its eCommerce platform using its subsidiaries and affiliates, what more can you ask for?
Amazon DSP is not limited to Amazon sellers, so any ecommerce brand can still use it. All you need are the resources to leverage its capabilities and be ahead of your competitors. With a great outlook on the growth of Amazon as a DSP provider and Canada's thriving economy, we strongly recommend that you take this advertising strategy.
Choosing a managed-service DSP can significantly benefit to Amazon sellers targeting a Canadian audience. Albeit the freedom self-service DSP gives, the entire process and campaign management can be a lot to handle, even for experienced advertisers.
That’s why some sellers opt for managed-service DSP. You let the experts perform these tiresome tasks and lift that burden off your shoulders. Of course, there is also the concern of letting third-party agencies handle campaigns and having less say over how the campaign goes.
But with the right DSP manager or team, you can rest assured that your ad campaigns will generate impressive results, despite the downsides of the managed-service option. That’s where Seller Interactive comes in!
Amazon advertising may be overwhelming, with DSP being complicated for beginners and Canada as a country with people from all walks of life. But don't worry—there are a lot of resources and Amazon marketing services that will make your life as a seller a little easier.
Seller Interactive is a Canadian Amazon advertising managed-service provider that offers Amazon DSP service. We are your ideal digital marketing agency, offering undeniable Amazon expertise and a proactive Canadian team ready to help you achieve your goals. Do you have any questions about harnessing the power of Amazon DSP and launching dynamic ecommerce ads to reach Canadian audiences? Reach out to us today, and we will be with you every step of the way.
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