Amazon DSP: What’s It All About?

December 1, 2021
Written by Kevin Wong
Amazon DSP

So, you're an experienced Amazon seller managing a lucrative e-commerce business. Your sales range from 5-,6-, or even 7-figures, monthly. You have established a group of loyal customers who've left great reviews on your products. Everything is running smoothly, but the growth simply isn’t moving fast enough, and you’re ready to take a jump. 

You're thriving, but still, you want to scale and dominate the market! So after using various advertising strategies and campaigns, you're ready to delve deeper into the large-scale, programmatic type of advertising through Amazon called Amazon DSP.

What is Amazon DSP?

So, what is DSP for Amazon, anyway? Amazon DSP stands for Demand-Side Platform. It consists of tools for advertising campaigns that have helped notable brands promote their products and services by strategically targeting their audiences on apps and websites where they frequent.

DSP is essentially a centralized media buying channel that collects and analyzes data from a broad audience. A holistic approach to research/communication instead of a smaller-scaled strategy targeting specific audiences. It provides sellers with added marketing opportunities to help fuel the growth of their brand. 

What types of businesses use DSP?

Amazon DSP is intended for existing sellers with brands that already have a successful track record online and are now scaling up. This feature is accessible to Amazon sellers and brands on other platforms looking for new growth opportunities. 

Businesses interested in DSP typically have the budget to scale their businesses by ramping up their brand awareness and reaching wider audiences on and off Amazon. Amazon DSP allows them to go beyond the Amazon platform.

What types of ads can you use for Amazon DSP?

Amazon DSP advertising supports several different options for media advertisements. You can build campaigns using audio, video, display ads, or a combination of them to promote your brand/products. Brands often upload their own media, however, Amazon does provide creative resources for advertisers as well. By using these resources, you’ll have access to display image ads tools along with a free video creative builder with varying styles. Sellers can use this to help align their advertisements with their brand style and image. 

What is DSP Amazon and the options that are available to choose from?

Advertisers have the option of two types of DSP: self-service and managed service. In self-service DSP, advertisers manage the campaigns themselves manually. On the other hand, managed-service DSP is a service for brands looking to hire agency-level management to handle their accounts. Managed-service Amazon DSP comes with a costly fee starting at $35,000 (may vary per country), so typically, more established brands use this service as part of their marketing strategy. 

Because self-service DSP advertisers run their own advertising, management fees are waived. However, the format and placement of ads still take the bulk of the advertising charges.

How Does Amazon DSP Work?

Amazon uses its Amazon-owned and partnered assets to reach audiences both on and off their platform. This increases the reach accessible for DSP advertisers and increases the potential to market their brand to a wider reach. The spaces they own include the Amazon marketplace, IMDB.com, leading Amazon publishing applications/streaming sites, and other subsidiaries.

With access to so much data, advertisers can specify who they want to communicate with and determine how best to reach their intended audiences.  Understanding your audience is critical for grabbing their attention. Consider factors like demographics and behavior to capture your audience and strategically plan your campaigns throughout the buyer's journey. 

Remember, Amazon owns a variety of different online products and has partnered with many sites, apps, and brands for DSP advertising. Amazon's marketplace alone opens up millions of visitors daily. With Amazon DSP, there are many growth opportunities and unlimited possibilities. 

When running campaigns, you’ll have access to a dashboard to track your advertising progress/statuses. You can measure the success of an Amazon DSP campaign with metrics like add to list (ATL) counts, new-to-brand (NTB), detail page view rate (DPVR). In addition, use statistics like reach, frequency, and viewability as KPIs to measure ads performance. Sellers and advertisers can use these metrics to help calculate the ROAS, improve advertising strategies, and set a foundation for future marketing direction. 

DSP With Other Amazon Advertising Campaigns

DSP is just one of the many advertising services offered by Amazon. It has been proven effective in brand growth, especially for larger brands both on and off Amazon.

Difference Between DSP and Sponsored Display Ads

Amazon equips marketers with many advertising tools, and although DSP and Sponsored Display have many similarities, they're also quite different. They're both Amazon advertising services, however, DSP offers managed services and solutions for more established brands. In addition, DSP also accommodates other types of media formats such as video and audio ads.

Mix and Matching Multiple Amazon Advertising Strategies

Many brands have incorporated combinations of DSP and other Amazon advertising services into their marketing campaigns. For example, Govee used DSP and Sponsored Display together to bring brand awareness to their target audience. As a result, Govee reached significant numbers for ad impressions through multiple advertising services, and the brand slowly built up its name in the smart home market.

Final Thoughts

The world of advertising is dynamic. What performs well now may not always be a viable strategy later down the road. This is why you have the responsibility to monitor trends, keep your brand relevant, maintain and surpass your target sales, and exceed your competitors. 

Although it can get complicated, Amazon DSP offers all sorts of solutions to help build campaigns that will better give your brand the exposure it deserves. With Seller Interactive, we help you achieve the marketing results you set for your brand. By employing industry-standard Amazon KPIs and in-house metrics for advertising performance, you can rest assured that your brand is in good hands.

By working with us for your Amazon DSP campaign, you'll attain peace of mind knowing that a team of dedicated, expert advertising professionals will manage your campaign confidently down to the smallest detail. So let's get in touch - send us an email at [email protected] today! 

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