Amazon Demand-Side Platform: A Comprehensive Guide for Businesses

Amazon ads page on a mobile phone placed on top of a laptop keyboard

Last updated on July 31st, 2023

Written by Himanshi Raj

In the competitive digital marketplace, leveraging the power of the Amazon Advertising Platform (AAP) can be a game-changer for your business. AAP, now known as the Amazon demand-side platform (DSP), is a service for display and video ads. By utilizing this advanced program, you can gain access to Amazon's vast audience through various third-party sites.

Delving into the world of DSP provides numerous benefits, like precise targeting and improved return on investment. From desktop and mobile web display ads, mobile banner ads, and video ads, you can reach out to your target audience within Amazon and outside the platform through the ecommerce giant's affiliate sites. 

With the right strategy, leveraging DSP can help you tap into a broader audience base, strengthen your brand presence, and ultimately boost your sales on the platform.

An Overview of the Amazon Demand-Side Platform 

The Amazon demand-side platform is a powerful tool that helps you maximize the visibility of your products on one of the largest online marketplaces. This programmatic display advertising program enables you to relax knowing that your advertising campaigns are automatically taken care of.

Through the Amazon DSP, you expand your audience from customers using the Amazon platform to those who are surfing outside it. The Amazon DSP allows you to access and manage inventory on various third-party websites and apps owned by Amazon or its partners.

When using Amazon DSP, you have two options:

  1. Managed-Service Option: If you are willing to spend at least $50,000 (the minimum that may vary per country), the managed-service option is for you. This investment lets experts or agencies handle your campaigns for you, so that you can enjoy the benefits of DSP without the headaches.
  2. Self-Service Option: The self-service option allows you to manage, maintain, and update your ad campaigns on the platform by yourself.

By leveraging Amazon DSP, you can enhance your brand's visibility, reach a broader audience, and ultimately drive more sales for your products on the Amazon Marketplace.

Different Ad Formats

When it comes to the Amazon DSP, knowing the variety of ad formats and devices is crucial. This section will explore the different ad formats you can use separately or simultaneously to maximize your reach and increase your sales.

an asset showing the Different DSP Ad Formats

Image Ads

Amazon Image Ads are a type of ad featured within the Amazon DSP. They are visually engaging display ads on Amazon's websites and apps, promoting products through compelling images and concise text. 

Web Display Ads appear on desktop and laptop devices, allowing you to target users on Amazon-owned platforms like IMDb and Goodreads and Amazon product detail pages. These ads come in various formats and sizes, offering flexibility when designing your creatives. Here are some tips to consider:

  • Design your ad with high-quality visuals to capture users' attention.
  • Customize these ads, optimizing them for various devices, placements, and audience segments.
  • Use bold text to highlight essential information and make it stand out.
  • Implement tables and bullet points if necessary to present information effectively.

Image ads leverage Amazon's vast customer data to target specific audiences, increasing relevance and effectiveness.

Audio and Video Ads

In addition to display ads, Amazon DSP offers video and audio ads to broaden your advertising reach. With a growing number of customers consuming content through video and audio platforms like Amazon Prime Video, Amazon Music, and Audible, incorporating these ads into your campaign can help you connect with your target audience on a deeper level.

Video ads can be integrated within Amazon's website or external platforms, getting your brand message across through audiovisual content. Audio ads, on the other hand, will reach customers on streaming services, making your brand's presence felt in everyday listening activities. 

Native Ads

Native Ads, a type of ad within the Amazon DSP, seamlessly blend into the surrounding content, providing a non-disruptive and integrated advertising experience. Designed to match the look and feel of the platform on which they appear, Native Ads are highly contextual and relevant to the user's interests, increasing engagement and conversion potential. These ads can be displayed across various Amazon properties, like product detail pages and search results, reaching a targeted audience based on their behavior and preferences.

Responsive eCommerce Ads

Responsive eCommerce Ads utilize machine learning algorithms and creative assets from brands to automatically optimize their appearance based on customer behavior and preferences. 

This format enables advertisers to include the Shop Now, Add to Cart, or Coupon buttons to make the customer purchase process faster. Add a product review posted on your Amazon store to boost your brand credibility.

Streaming Studio Ads

Streaming TV Studio Ads are premium, high-quality video ads displayed on Amazon's streaming TV devices and services. These ads are professionally produced, ensuring viewers a compelling and immersive experience. 

Advertisers can leverage Amazon's audience insights to target specific demographics and interests, reaching engaged audiences on popular streaming platforms. Streaming TV Studio Ads offers brands a powerful way to showcase their products or services through captivating storytelling and visuals, maximizing brand visibility and driving user engagement in the growing realm of connected TV advertising.

Third-Party Ads

Third-Party Ads are display and video ads served on Amazon's websites and apps through external advertising partners. These ads are not directly created or managed by Amazon but are delivered by third-party advertisers using Amazon's advertising platform. 

Advertisers can leverage third-party data to target specific audiences and optimize their ad campaigns. This format enables external advertisers to tap into Amazon's vast customer base and access its sophisticated targeting capabilities, providing a broader reach and potential for increased conversions within the Amazon e-commerce ecosystem.

Amazon page on a mobile phone showing Prime Day ads with a laptop screen showing Prime Day ads too on the background

Maximizing Amazon DSP’s Effectiveness

As an Amazon seller, maximizing the effectiveness of Amazon DSP is crucial to driving traffic and sales to your products. To achieve this, it's critical to analyze the data provided by Amazon DSP, be aware of your audience, find the right keywords and targeting options, and continuously optimize your campaigns. Let's get into the details below.

Set Campaign Specifics

Decide on the essential elements of your Amazon campaign. Think about the campaign name, budget, and schedule. 

  • Campaign Name: Think of something creative and remarkable. A good campaign name can drive results and allow you to create thousands of ads. You can brainstorm with a team, look for trending ideas, or use one if you already have a list of ideas.
  • Campaign Budget: Select an ad solution that you can afford. Even if ads are your current priority, remember that you still have to spend on other aspects of your business. Keep this in mind while deciding how your campaign will look like.
  • Campaign Schedule: Consistency is key to a successful campaign and business. Set up your ads' fixed start and end dates to avoid overspending unnecessary amounts.

Audience Targeting and Awareness

Focusing on audience targeting and awareness is essential to get the most out of Amazon DSP. With Amazon DSP, you can utilize Amazon's rich dataset to reach potential customers at multiple stages of the purchase funnel, from initial understanding to final purchase.

With Amazon DSP, your ads can appear on targeted ad placements in Amazon-owned platforms like Prime Video, Twitch, and Fire TV. Through this, you can increase brand awareness and reach users on various devices, including Android and iOS.

Some key points to consider are:

  • To identify key audience segments for your brand.
  • To target specific groups based on interests, demographics, and purchase history.
  • To utilize lookalike audience targeting to reach similar consumers.

Visual Enhancement

Visual media is always necessary when a brand tries to make an impact on its target audience. Choosing your words wisely helps, but sometimes words are not enough. Amazon Marketing Services (AMS) is the Amazon service that offers many types of visual content for better customer engagement. Utilize its offers to enhance your ads.

Focus on Elements That Work

Identify which products need the most optimization. With AMS's available data on brand performance, classify your products according to popularity, conversions, performance, and click-through rates. This way, you can spend more time and money on advertising products that work. 

Optimization and Retargeting

Once you have established your target audience, focus on optimization and retargeting to maximize the effectiveness of your Amazon DSP campaigns. Implement programmatic ads to automate the ad buying process and optimize in real time. This will ensure your ad budget is allocated to the highest-performing placements, improving your chances of generating revenue.

Test creative elements, ad formats, and messaging to determine what resonates with your target audiences. Regularly assess your campaigns' performances using metrics such as click-through rates, conversion rates, and return on ad spend (ROAS).

Use retargeting techniques to re-engage potential customers who have clicked your ads and visited your listing or store but have yet to be converted into a sale. Remarket your products to these users with dynamic ads, presenting pertinent information based on their previous interactions, search results, and browsing history.

In summary:

  • Employ programmatic ads for real-time optimization.
  • Test and evaluate various ad elements and messaging.
  • Implement retargeting strategies to re-engage potential customers.
Amazon advertising logo on a mobile phone placed on top of a laptop keyboard

Alternative Advertising Platforms

This section will discuss some alternative advertising platforms and compare them to Amazon DSP. These alternatives include Amazon Marketing Services, some pay-per-click (PPC) and cost per impression (CPM) programs, and Facebook Ads.

Amazon Marketing Services (AMS)

Amazon Marketing Services (AMS), now known as Amazon Sponsored Ads, is another option Amazon provides for advertisers. It comprises a suite of PPC advertising options, including Sponsored Products, Sponsored Brands, and Sponsored Display ads. You can leverage AMS to improve your product visibility on Amazon, ultimately driving sales and conversions.

Unlike Amazon DSP, AMS focuses on advertising within the Amazon platform using various ads, from headline search ads to banner ads. This means you are targeting already-existing Amazon shoppers with a higher purchase intent, which can lead to better conversion rates.

PPC and CPM Programs

Consider other PPC (pay-per-click) and CPM (cost-per-mille) programs when looking for alternative advertising platforms. These options allow you to bid on ad placements across various third-party websites, potentially expanding your reach beyond Amazon's audience. Some well-known platforms include Google Ads and The Trade Desk.

PPC and CPM programs typically offer the following benefits:

  • Audience Reach: Access to extensive networks of third-party websites, serving display and video ads to various target audiences.
  • Flexible Budgeting: Set your ad budget and bid amounts based on your marketing objectives and available resources.

However, remember that managing multiple advertising platforms might require more time and effort, as each platform has unique features and strategies.

Facebook Ads

Another popular advertising platform is Facebook Ads, which allows you to reach a vast audience on both Facebook and Instagram. As with Amazon DSP, Facebook Ads target users based on their interests, behavior, and demographics.

Some key differences between Amazon DSP and Facebook Ads include the following:

  • Platform Environment: Facebook offers an inherently social experience, which means that your advertising might have the potential for higher engagement and interactions than display ads on third-party websites through Amazon DSP.
  • Creative Options: Facebook Ads allow for various ad formats and creative options, such as Carousel, Collection, and Instant Experience ads, providing more opportunities to engage with your target audience.

Exploring various advertising platforms is essential to find the best fit for your brand and marketing goals. Each platform offers unique benefits and reaches different audiences. Make sure to compare the advertising opportunities provided by each platform and choose the one that meets your needs and objectives.

Stay Continuously Updated About Amazon DSP

It is crucial for businesses to continuously stay updated on platform updates to market their ads and maximize their revenue effectively. Amazon is dedicated to giving only the best to customers, pushing businesses to rebrand and make changes now and then. Here are ways to check for new features and updates that can provide new opportunities for businesses to improve their advertising strategies.

Contact an Amazon Account Executive

If you are looking for more information or support, contact an Amazon Ads account executive. They can answer your questions, provide consultation services, and guide you through setting up your campaigns. Remember, the managed-service option for Amazon DSP typically requires a minimum spend of $50,000, so you should be aware of this when reaching out.

Nevertheless, note that there are more affordable alternatives like delegating the tasks to a third-party agency. These agencies offer assistance particularly for Amazon DSP, and other services you might need to manage your Amazon store.

You can also learn the ropes of Amazon DSP yourself. Here, instead of money, your investment will be effort and time. Resources and webinars are readily available on the Amazon website in case you think this is the best option for you. 

Amazon DSP Blog

To stay updated with the latest news, insights, and best practices, it's essential to read and follow the Amazon Ads blog. This resource can help you:

  • Build your Amazon Ads expertise.
  • Access valuable resources for advertisers.
  • Discover success stories and tips from other businesses using Amazon DSP.

When exploring the blog, watch for articles about various aspects of the Amazon Advertising Platform, such as product display ads, targeting strategies, and measuring your campaign's performance. This continuous learning process can help you make informed decisions to optimize your advertising efforts on Amazon DSP.

Amazon Demand-Side Platform Assistance From Seller Interactive

The Amazon DSP is a game-changer for businesses in today's competitive digital marketplace. Leveraging the power of the Amazon DSP can help strengthen brand presence, help your business tap into a broader audience base, and ultimately boost your sales on the platform.

The platform offers different ad formats and devices which allow you to reach potential customers more effectively.

To maximize its effectiveness, focus on audience targeting and awareness, optimization, and retargeting, and continuously stay updated on changes and updates to the platform. Utilizing Amazon DSP’s resources and seeking assistance from Amazon Ads account executives and digital marketing agencies like Seller Interactive can also bring immense value to your advertising strategy. Call us today.

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