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How To Use Targeted Advertising with Amazon DSP

Financial report after using Amazon DSP

Amazon DSP: Ad Targeting Capabilities Explained

The Amazon E-commerce Platform has made a huge impact in the digital advertising world. Amazon is expanding extensively in its e-commerce marketing tools, particularly in Amazon Demand Side Platform. Amazon DSP Advertising is part of their campaign for market dominance. As it grows, the opportunities for brands grow at the same time. To keep stable and innovative progress, Amazon continues to expand its ad targeting capabilities. Amazon DSP targeting is a terrific way to get the most out of your ad budget. Learning how to use more complex programmatic retargeting to stay competitive is critical for a successful e-commerce business expansion. Anyone who sells on Amazon — and even those who don't — can use Amazon DSP Advertising.

Before we discuss what is Amazon DSP targeting, let's first go through the basics.

What is Amazon DSP?

Amazon advertising is not all about converting sales. It does not begin and finish with the site's omnipresent sponsored ads. It extends beyond the retail site into entertainment platforms, other media assets, and more.

Amazon demand side platform advertising plays a huge role in this type of marketing. It can help you obtain access to a lot of different products, properties, and targeting options.

The Amazon Demand-Side Platform (DSP) is great for businesses looking for an automated advertising platform. It allows marketers to buy display and video advertisements programmatically across the Amazon ecosystem. It also displays ads on third-party exchanges, targeting relevant audiences.

Unlike the Amazon Ad Console, which focuses on running sponsored advertising on Amazon.com, the DSP gives advertisers a lot more flexibility. You may reach potential consumers via platforms such as Amazon.com, Fire TV, and Imdb.com. You can also reach buyers through Kindle, Apps, Published Partners, and Third-Party Exchanges.

Sponsored Ads and DSP have some significant distinctions. Sponsored advertising is based on a cost-per-click (CPC) model, whereas DSP is based on a cost-per-impressions one (CPM). The cost structure highlights the most significant distinction between the two platforms. Sponsored advertising is intended to generate conversions, whereas DSP is intended to raise brand awareness.

Does Amazon have the best Demand Side Platform?

The strength of Amazon-DSP comes from Amazon's vast size. Amazon has billions of purchasing and media consumption trends that are trackable. Unlike Facebook, which shows you what people like, and Google, which shows you what people search for, Amazon shows you what people purchase. Amazon has the world's largest database of online shoppers from all phases of the consumer experience available to advertising, and it's still increasing. There are targeting choices accessible for any approach, whether the aim is to raise brand recognition or generate conversions.

Who can use Amazon DSP Targeting?

Regardless of whether a brand is an Amazon vendor or not, any company that focuses on digital marketing can utilize the DSP. Even better, Amazon-DSP advertisements may be used at any stage of the sales funnel, from brand awareness through purchase. This means that whether you're a middle-sized business or a major corporation, you can use the ad platform to optimize your reach and sales. This is all possible thanks to Amazon's unrivaled target audience data.

Sellers have two choices for advertising through Amazon's DSP program:

Small businesses using the DSP's creative ad templates or large enterprises with their own dedicated advertising staff should choose Enterprise Self-service.

Amazon Managed Service is another alternative for marketers who want to design their campaigns with the help of an expert Amazon advertising agency.

What are the types of Amazon Demand Side Platform, and where will they appear?

Keyword searches do not trigger Amazon-DSP advertisements. You must specify a target audience, and Amazon displays the right ads to the right people. This is why having a variety of targeting choices is so vital.

There are three primary types of advertisements, each of which appears in a specific location. These can be on or off Amazon and the Amazon ecosystem, including your website. This is different from Amazon's Sponsored Product Ads and Sponsored Brand Ads. Here are the 3 types of DSP ads:

Display advertising

These are basic banner advertisements that come in a variety of sizes and formats. If you buy display advertisements through Amazon DSP, they can appear on Amazon and devices from Amazon. IMDb, Audible, Box Office Mojo, Zappos, Goodreads, and Twitch are among the Amazon-owned and operated sites.

Video Advertising

These can appear alongside video content (OTT) or as a component within a display ad (out-stream video). They can appear on IMDb, Fire TV, and other similar devices throughout the internet.

Audio Advertising

Amazon is also launching audio advertisements as a beta in the United States.

What are your Amazon DSP Targeting Options?

You may utilize Amazon Demand Side Platform Ad Targeting to achieve a variety of advertising objectives. You may remarket to audiences who have already viewed your product page. This is very effective if your product has a long sales cycle or is a high-ticket item. If you want to raise brand recognition, you may use video ads to expose your brand to new consumers outside of Amazon.

Thousands of client segments are available on Amazon Demand Side Platform. It has a collection of information on shopper purchase history and intent. Understanding the ad targeting options and matching them to your advertising objectives is essential to successful DSP advertising.

Amazon has data on everyone's purchase habits, and it can gather lifestyle choices, hobbies, and demographics with relative ease and accuracy using that data. This is one of the main reasons why the Amazon-DSP is such an important programmatic platform. It is useable even for brands that don't sell on Amazon.

10 Types of Amazon DSP Advertising: Targeting Capabilities

1. Behavioral Targeting

This type of ad targeting locates customers who exhibit specific behaviors, such as browsing about your category over the previous month. It is also for consumers who clicked on a specific product listing. You may use broader information about your consumer base and items to establish these triggers. This type of ad targeting is best for top-of-the-funnel strategy or brand awareness.

This form of Amazon DSP advertising is frequently used to raise awareness of your brand or products. You can establish any number of triggers and target customers farther down the funnel. You can apply this method to target repeat visitors in your middle-of-funnel strategy.

2. Lifestyle Ad Targeting 

Lifestyle targeting is a type of ad targeting that provides advertising relevant to consumers who usually buy from a given category. This implies you may target clients who have similar traits to your current customers or who are interested in brand-related areas. For example, a protein shake product can be targeted to buyers who purchase other supplements. This is best for brand awareness or a Top-of-Funnel strategy.

These audiences often have a lower initial Return on Ad Spend. It does, however, have a higher Customer Life Value (CLV) rate. This is because these consumers may not require your product right now, but they are a fantastic fit for your business overall. They can return to your product again once they run out or when there is a sale.

3. Demographic Targeting

You can implement ad targeting based on age, gender, income, or region if your clients fit into a specific demographic. This type of advertising is best for brand awareness or top-of-the-funnel strategy.

Amazon gathers demographic data based on accounts, so keep that in mind. When more than one person uses the account, the statistics might get skewed. Proceed cautiously.

4. Device Ad Targeting

This is one of Amazon Targeting Capabilities that allows you to target your ads to specific end-user devices. It achieves this via Android or Apple phones, desktop users, various operating systems, or specialized products such as the Amazon Fire tablet. It is best for brand awareness and top-of-the-funnel marketing strategy.

One thing to think about with this choice is your ability to develop custom creatives for each device. If your ad is only visible to desktop users, for example, you don't need to bother about mobile scaling or screen size. This can help you give buyers a more tailored experience.

5. In-Market Targeting

This is a type of ad targeting that allows you to reach consumers who are "in-market" for certain items or services. Let's assume you've been buying skincare products for a long time. Amazon DSP targeting would identify you as "in-market" for skincare products. Realistically, this is a more polished version of lifestyle targeting. These targeting capabilities are best for Brand Consideration or Middle-Funnel Strategy.

In-market targeting not only raises brand recognition but can also increase sales. Audiences from "In-Market" might be groups of users that indicate a high possibility of acquiring what you're offering. For example, if you were offering a mosquito net for infants, you can target ads to new parents who are looking for similar products.

6. Contextual Targeting

You can target audiences depending on what they're seeing in real-time. With Amazon DSP advertising, you may target buyers who haven't bought anything yet. You can do this by serving advertisements only on articles and pages that discuss a specific topic. It is best for Brand/Product Consideration pr Middle-Funnel Strategy.

This is a terrific way to boost conversions and encourage spontaneous purchases. Take note that this result is only applicable to items with short sales cycles.

7. Remarketing

Consumers who were on the verge of purchasing a product or a competitor's product are targeted via remarketing. This is for customers who have abandoned their cart or added a product to their wish list.

Amazon DSP targeting: Remarketing comes in a variety of shapes and sizes:

a. Pixel-Based Remarketing

Remarket to shoppers who have visited your brand's Amazon Page or Website.

b. ASIN Remarketing

Remarket to customers who looked at your goods on Amazon but didn't buy them.

c. Purchased ASIN Remarketing

Remarket to consumers who have already purchased one of your items. This is a terrific approach to increase your CLV.

d. Brand Halo Remarketing

You can remarket to buyers who viewed other products from your brand. This is best for building brand awareness.

e. Similar Product Remarketing:

You can retarget shoppers who browse similar products to yours. Appearing on your competitors' Amazon product pages is a terrific strategy to undercut them.

This type of Amazon DSP targeting is best for sales or Bottom-of-Funnel strategies. Remarketing is essentially a type of behavioral ad targeting that targets bottom-of-funnel buyers. It's also crucial to think about the sort of remarketing and Amazon targeting capabilities you want to use.

8. Audience Lookalike

This type of Amazon DSP advertising targets consumers who are similar to your present customers. Amazon uses the massive amount of data it has at its disposal in tandem with collaborative filtering to generate thorough customer profiles. These targeting capabilities are best for both brand awareness and product/service consideration.

9. Advertiser Audiences

If you don't want to depend entirely on Amazon's first-party data, Amazon DSP advertising lets you use third-party data. You may upload current customer data and utilize it to target advertisements using pixels, DMP audience transfers, and CRM data. This unique Amazon Demand Side Platform feature makes it better than other programmatic platforms.

This method is especially beneficial for direct-to-consumer businesses with a large amount of current client data. Make sure to go through your data and see how you can use it in your DSP ads.

10. Custom Audiences

Additional custom audiences can be created in a variety of ways. You may target people who have clicked on, purchased, or seen a product based on an ASIN or a collection of ASINs. Keep this in mind and don't be afraid to try new things.

Key Takeaways

  • Before employing Amazon DSP advertising, make sure your SP/SB/SD PAT campaigns are in order and well-optimized.
  • Before you start building your Amazon DSP targeting campaign, make sure you have a goal in mind.
  • Reach people that have recently visited other related categories and companies to raise awareness for new product and brand launches.
  • Advertise your bestselling goods to audiences that have previously browsed related product or category detail pages to gain new consumers.
  • Consider using Amazon product targeting capabilities to direct visitors to your product detail pages, and then using views remarketing to re-engage those visitors.
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