The potential of Amazon DSP advertising for brands in 2024 is significant, and as we enter Q1 of this year, navigating the dynamic landscape of Amazon advertising requires a strategic approach. Keep reading to discover ways to unlock the power of Amazon DSP and elevate your brand’s advertising game.
What is Amazon DSP?
Before we shift our focus to Amazon DSP’s potential for brands, let’s cover some basics. Amazon DSP is a Demand-Side Platform that allows you to programmatically buy ads that appear both on and off Amazon. Demand-side stands for “a demand” from advertisers to show their ads to customers across different websites.
How Amazon DSP works differs from direct advertising. Its programmatic aspect means it uses computer software to buy and sell digital advertising inventory automatically. So, you don’t have to contact individual publishers to show your ad, but the Amazon DSP does automatic work for you.
Why Use Amazon DSP?
Amazon DSP advertising is excellent for brand-building and retargeting customers. What is great about the platform is that you don’t have to sell products on Amazon to use it. You can choose various ad formats (audio, display, and video ads) to promote your product or service with Amazon DSP. This advanced platform (software) allows you to reach new and existing audiences wherever they spend their time. There are numerous places where your Amazon DSP ads can appear, including Amazon pages (homepage, product detail page, search results page, deals page), Amazon-owned websites (IMDb, Twitch, Audible, etc.), on Amazon devices (Fire TV, Fire tablet, Kindle), and across the web.
It is important to note that Amazon DSP is separate from Amazon PPC, and you can’t access it from the Amazon Ads console. Instead of focusing on keywords and search terms that people are typing in the search bar on Amazon, Amazon DSP is audience-based and follows customers across the internet. In addition, while PPC advertising is based on a CPC (cost-per-click) model, with Amazon DSP advertising, ads can be purchased on a fixed or dynamic CPM (dCPM) model. CPM is a cost per thousand impressions and refers to the average amount you pay every thousand times internet browsers load your ad.
Amazon Demand-Side Platform Pricing
This brings us to pricing for the Amazon Demand-Side Platform. Pricing for ads through Amazon DSP varies depending on format, placement, and whether you select a self-service or a managed service. Self-service customers are in complete control of their campaigns, and there are no management fees. The Amazon managed-service option typically requires a minimum spend of $50,000, depending on the country. The second option is for businesses that want access to Amazon DSP inventory with consultative service or those with limited programmatic advertising experience. You can significantly reduce costs if you partner with an experienced Amazon marketing and advertising agency to help you manage your Amazon DSP advertising strategy.
The Power of Amazon DSP
Amazon DSP (Demand-Side Platform) presents a significant potential for brands, medium and large-sized businesses, in particular.
Unlike most demand-side platforms, Amazon DSP doesn’t rely on third-party cookies to get visitor information. One of its most significant advantages is access to Amazon’s first-party customer data. It offers excellent opportunities for targeted advertising with insights into customers’ shopping behavior and intent, allowing you to pinpoint specific audiences based on their shopping behavior and interests. This, in turn, enhances ad effectiveness, ensuring a more impactful reach.
Multichannel Advertising with Amazon DSP
With its various ad formats, including captivating audio and video options, you can create engaging and varied campaigns to grab your customers' attention. Once you have creatives and targeted audiences in place, you can benefit from multichannel advertising. Amazon DSP allows you to reach people on multiple channels, including Amazon’s sites and apps, third-party websites and apps, and connected TV devices. You can link your ads to a product detail page, an Amazon Store, or a non-Amazon page.
Additional Insights with Amazon DSP
Amazon DSP offers in-depth reporting and analytics, allowing you to track insights during diverse purchase funnel stages, such as awareness, consideration, and conversion. It is a trustworthy demand-side platform with high-quality inventory sources that can help you avoid risky content. With its brand safety features, you can protect your brand reputation by reducing the risk of association with content that isn't brand-safe.
We mentioned precise targeting options and access to Amazon’s first-party customer data as two of the Amazon DSP’s most prominent advantages for brands. Another significant potential of this platform is its availability for any brand in any industry. Since you don’t need a product listing on Amazon, you can make the most out of Amazon DSP even if you are not an Amazon seller. In addition, there are many types of remarketing targets that you can use to target customers who are close to purchasing your or your competitor’s product.
If you are looking for ways to refine your marketing strategies in 2024, Amazon DSP is a perfect choice. It is a powerful toolkit for brands to refine and optimize their widespread marketing strategies. This contributes to the development of a holistic and efficient Amazon-centric marketing approach.
It is easy to see why Amazon DSP holds immense potential for brands to upscale their advertising strategies in 2024.
You can take advantage of this powerful demand-side platform whether you want to promote a product or a service, and you don’t even need to sell on Amazon. It allows you to make highly creative and engaging ads that capture the attention of a precisely targeted audience both on and off Amazon.
If you don’t have the experience and resources to manage Amazon DSP advertising by yourself, and if you want to avoid the high costs of having Amazon handle your DSP, we suggest finding a qualified ad agency to work with.
Blue Wheel has over 12 years of marketplace experience and a team of experienced Amazon advertising experts ready to help you achieve profitable results with Amazon DSP.
Contact us today to learn more about our Amazon services!