6 Noteworthy Benefits of DSP to Your Amazon Business

A mobile phone displaying a play icon and a 'Play This Ad' button

Last updated on August 9th, 2023

Written by Mohamed Aden

The eCommerce world is ever-evolving. As an Amazon seller, it is your ultimate goal to establish a strong connection with your target audience. Fortunately, you can now enjoy the significant benefits of DSP for your online brand.

Also known as the demand-side platform, Amazon DSP helps businesses effectively plan and manage their advertising campaigns to reach a wide array of consumers across various ad spaces. You’ll never run out of new ways to grow your business because Amazon always extends and innovates.

Discover more about this programmatic advertising platform and its ability to expand your online presence and brand consistently.

What is Amazon DSP?

Amazon DSP allows advertisers to programmatically buy display and video ad placements on the marketplace and other third-party websites. You can manage multiple ad exchanges, and data exchange accounts through one interface by utilizing demand-side platforms.

DSP offers powerful advertising campaign tools that strategically target Amazon audiences on popular apps and websites, leading to increased sales. It will put you in the best position to market your products effectively. 

DSP Advertising Formats

As technology advances and consumer preferences evolve, advertisers need flexible and captivating formats to grab their target audience's attention and drive meaningful results.

Thanks to the emergence of DSPs, they now have access to a wide range of dynamic ad formats, letting them take their business to new heights. These formats go beyond traditional ads by delivering innovative approaches to connect with relevant viewers across diverse online channels.

Take a look at each of these:

Display Ads

With Amazon DSP, you can leverage static and dynamic ad formats. Here’s how: 

Static Display AdsDynamic Ads
• Image-based advertisements

• Consist of a single image or a series of images, accompanied by concise text and a call-to-action.

• Straightforward ads

• Can run on Amazon sites, the web, and within mobile apps source
• Customizable advertisements based on individual user data

• Can show personalized content, such as product recommendations, pricing information, and availability updates.

• Have the potential for higher visual impact and engagement

You can further improve the effectiveness of display ads with product remarketing and similar product remarketing strategies.

  • Product remarketing involves targeting customers who have previously shown interest in certain products, encouraging them to return and complete their purchase. 
  • Similar product remarketing displays ads to potential customers based on their interests and preferences, promoting products similar to those they show interest in.

Video Ads

Most DSPs, including Amazon, support video ads. This advertising format lets you capture your customer’s attention through immersive content, promoting a better connection between viewers and your brand.

The power of video lies in its ability to tap into the emotional aspect of marketing. Through sight, sound, and motion, video ads can evoke emotions, spark curiosity, and leave a lasting impression on the audience’s life.

Audio Ads

Entice potential buyers through audio ads. Since they are engaged with music streaming services or podcast platforms, you can reach a unique market in a less cluttered advertising environment.

You can complement your other advertising formats with audio ads to provide a more comprehensive approach to interacting with your primary customer base.

6 Benefits of DSP for an Amazon Business

Is there a catch to having an Amazon DSP for your business? The answer is no. Even if your products aren't for sale on Amazon, this platform can help you expand your reach outside the website. Customers can access various purchasing options from other online stores like eBay, Etsy, and others.

The following are more benefits of using the Amazon Demand-Side Platform (DSP).

  • Audience Segmentation
  • Holistic Funnel Strategy
  • Fact-Based Findings
  • Streamlined Operations
  • Automated Bid Management
  • Inventory Organization

1. User Targeting

The more information advertisers have about their clients, the better. Marketing agencies can use this information to target specific groups and not waste ad space on people who will not buy your products. 

A strong user-centered approach entails having detailed knowledge of each individual's behaviors over numerous digital properties. No matter where someone is browsing online or reading an email from them, ads will always be waiting for them.

2. Full-Funnel Approach

When you invest in Amazon DSP,  you cover the entire sales funnel. Here’s what we mean.

An infographic showing the benefits of DSP in achieving a successful sales funnel.

With Amazon DSP,  you strategically navigate each stage of the sales funnel, reaching the right customers with the right message at the right time. 

3. Data-Driven Insights

Thanks to the power of DSPs, advertisers can now do more with their ad campaigns. Dashboards enable them to see everything going on in one place, giving them a better understanding of how it affects campaign performance. 

They also eliminate the need to waste time experimenting with new strategies when you already know which ones work and which do not.

4. Efficient Work

Unlike traditional advertising methods that require time-consuming processes such as requesting proposals, negotiating, and creating ad contracts, programmatic advertising offers a streamlined approach.

You can swiftly buy and place ads through Real-Time Bidding (RTB). All you need to do is bid on ad impressions in real-time auctions so you can target certain audiences and optimize ad placements. 

5. Automatic Generated Bidding

Rather than manually adjusting bids based on various factors, the DSP algorithm automatically generates optimized bids in real time. 

This algorithm considers factors such as competition, ad placement, and user behavior to ensure your bids are perfect for the best efficiency.

6. Classification of Inventory

Another significant advantage of DSP is the convergence of supply on a single platform. Advertisers can reach a broader range of publishing companies through a single provider, resulting in a more diverse and global ad inventory than they could otherwise achieve. 

This inventory is frequently classified by different characteristics, allowing brands to select their advertisements to appear. This is critical for brands that prefer a secure location for their advertising.

By maximizing these opportunities, you can develop your marketing strategy, earn high revenue, and get better business outcomes.

The Difference Between Amazon DSP and Amazon PPC 

Some sellers are still confused about Amazon DSP and Amazon PPC, and it’s not surprising why. Both platforms have advertising objectives that can create an overlap in their functionalities, to begin with. 

The intricacies of programmatic advertising, particularly in the case of Amazon DSP, involve technical terminology and complex concepts that may be unfamiliar to sellers not well-versed in digital advertising practices. Terms like real-time bidding, audience targeting, and ad formats can seem daunting and require a learning curve.

Don’t worry; we’re here to clear things up! Below is a table highlighting the key differences between Amazon DSP and Amazon PPC.

AspectAmazon PPCAmazon DSP
Advertising GoalDrives traffic and conversions within the Amazon marketplaceBoosts brand awareness beyond Amazon
Ad PlacementSponsored Products, Sponsored Brands, Sponsored Display AdsDisplay ads across various platforms, websites, apps, and more
Targeting OptionsKeyword-based targeting within Amazon search resultsAdvanced audience targeting based on demographics, behavior, etc.
Ad FormatsText-based ads, product listings, headline adsDisplay ads, video ads, audio ads, interactive ad formats
Ad InventoryAmazon-owned platforms and search resultsWide network of websites, apps, and connected TV platforms
Brand AwarenessLimited exposure beyond the Amazon ecosystemReach broader audiences and enhance brand awareness
Cost EfficiencyCost-per-click (CPC) model: Pay only when someone clicks on the adCost-effective targeting: Reduce wasted ad impressions

Find Your DSP Program Account Manager at Seller Interactive

Amazon is continuously evolving. Staying ahead of the game can sometimes feel like a wild ride. But fear not! Seller Interactive is here to steer you in the right direction.

With a professional DSP account manager by your side, you'll have the ultimate companion on your journey to growth. We'll guide you through the twists and turns of programmatic advertising, helping you grow your business through innovation and creativity.
Book a call today!

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