Amazon Advertising Managed Service Provider: The Underrated DSP Choice

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Last updated on July 11th, 2023

Written by Ken Zhou

Amazon Demand Side Platform (DSP) is all the rage among Amazon sellers and marketers, and it’s easy to see why. The program’s self-service option allows them to fully control their advertising campaigns. It also gives them the power to refine their strategies according to their unique business needs.

Unfortunately, the other option often finds itself overshadowed: managed service. While managed service has a required cost and limited control, dismissing its potential would be a complete mistake. 

Seller Interactive is here to give insights about the untapped power of having an Amazon Advertising Managed Service provider and how it can elevate your digital ads like never before.

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Amazon Ad Challenges and How Managed-Service DSP Can Help

Amazon DSP’s vast reach and targeting features offer advertisers a valuable platform for connecting with new and existing audiences. Its relevance is even emphasized by the availability of two Amazon marketing services: self-service and managed service.

Ecommerce business owners highly favor self-service as it grants customers full authority over their ad campaigns. This resonates with many sellers who prefer a hands-on approach to their ad strategies. 

Managed service, on the other hand, caters to companies with limited ad experience and guides them throughout the campaign process.

Despite the assistance given from the managed-service option, most sellers are still reluctant to embrace it. What are the underlying reasons behind this? Let’s analyze the factors influencing their decision-making process and see how managed-service DSP can help.

#1: Level of Programmatic Advertising Expertise

Programmatic advertising uses algorithms and data to target specific audiences and deliver personalized display, video, or audio ads across various digital channels. This approach increases efficiency and allows for precise targeting and measurement of campaign performance.

It might appear easy because it automates buying and selling digital ads, but it is not. Let’s say you want to create dynamic ecommerce ads. These involve various ad formats, creative assets, and ad copies. If you don’t understand how they work, you’re compromising the chances of achieving optimal results and maximizing your advertising potential.

But with Amazon's managed-service internal team, you can let them create these complex ads in your stead. 

#2: Financial Limitations

The costs vary depending on the chosen approach in Amazon DSP advertising. You can customize your advertising budget with self-service, while the managed service provider comes with a minimum management fee of $50,000. It may also differ per country.

Given the potential cost variations and ad budget optimization, many business owners opt for the self-service option. They don’t want any financial constraints that might affect the flow of their business on Amazon.

But they may not also realize the expertise and support a managed-service team can bring. They can access the ins and outs of the demand side platform advertising so you can efficiently manage your expenses.

#3: Limited Knowledge of Inventory Features

Some businesses are unaware of the exclusive DSP inventory of Amazon managed service. It targets Amazon audiences based on their demographics, lifestyle, and devices used, among other things. 

There are also different types of Amazon DSP inventory, such as AZOO MB (Amazon Owned and Operated for mobile), AZOO DS (Amazon Owned and Operated for desktop), and AZPS (for Amazon publisher services.)

Does the self-service option have an inventory? Yes, but it doesn’t have certain exclusive features like the Share of Voice (SOV) packages with additional impressions or placements for driving brand awareness. If this function appeals to you, the managed-service DSP is a better choice.

#4: Lack of Consultation

Amazon DSP and Sponsored Ads may appear similar in their buy-and-sell process but differ in eligibility, expense, and control, leading to confusion among online sellers.

This circumstance is where the importance of having managed service becomes evident. The managed service option offers consultation, enabling you to contact an Amazon Ads specialist to discuss your concerns and plans for your display ads. It’s reassuring for inexperienced sellers to know they can get help anytime. 

How to Elevate Your Ad Strategy Under Amazon DSP

As you can see, leveraging Amazon-managed service revolves around utilizing an internal team. But note that it cannot address all your advertising needs single-handedly. It would still be best to take an active role in upscaling your programmatic ads and filling the gaps that may arise.

Here’s how you can do that.

Key Takeaway on Amazon Managed-Service DSP 

It’s difficult for an Amazon seller to delegate an important part of their business to someone else. But for many, especially startups and small businesses, having a professional on their side is more helpful than not having one. 

A great example of this is Amazon DSP’s managed-service option. Instead of spending time learning the ropes, you let Amazon manage your campaigns. It also includes exclusive perks such as DSP inventory access, consultation support, real-time optimization, and strategy development.

It requires a management fee, which can overwhelm your budget, but it’s still worth a shot. You must understand your business needs and know the best way to utilize them.

Get Expert Amazon DSP Help Today!

Are you planning to take your Amazon brand to the next level through Amazon DSP? Try Seller Interactive’s DSP program expert solutions.

We have well-trained DSP advertisers who devise strategies and provide the tools necessary to reach audiences on and off Amazon. Our Amazon advertising management services include extensive reporting metrics, strategic programmatic ads, customer engagement strategies, and definitive goal setting.

Book a call today for more details!

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