Amazon DSP: Boost Your Sales With Amazon Demand Side Platform
You might be wondering, what is Amazon DSP advertising? This refers to Amazon Demand Side Platform. It includes advertising campaign tools that have assisted well-known businesses in promoting their products and services. Amazon Demand Side Platform Advertising achieves this by targeting their audiences on apps and websites where they spend time. In this article, we will talk about what is demand side platform and which is the best demand side platform. We will also tackle the Amazon DSP Benefits and how this platform can boost your sales.
What is Demand Side Platform?
A DSP is a centralized media buying channel that gathers and analyzes data from a large number of people. Instead of a smaller-scaled strategy targeting individual audiences, you can use a holistic approach to research/communication. It gives merchants more marketing alternatives to assist them to build their businesses.
Retargeting using Amazon Demand Side Platform (DSP) offers the biggest potential of all the strong programmatic advertising alternatives packed into Amazon Advertising. When done correctly, retargeting may result in a considerable boost in sales that you can measure using KPIs.
Simply explained, retargeting is a type of programmatic advertising in which ads offer consumers based on their previous purchasing behavior. Product searches, detail page views, and product sales are all examples of this on Amazon.
Following that, the business categorizes these behaviors into retargeting audience categories, which you can use to target campaigns. For example, if a consumer looks for but does not purchase an item offered by your brand, they will be reminded of it later. They will see an advertisement for your goods on both Amazon and third-party websites. Let's start with the basics and answer some common questions about Amazon DSP advertising.
What Type of Businesses Can Use Amazon DSP?
Amazon designed Amazon Demand Side Platform Advertising for established sellers. It works well for those who already have a good online track record and are looking to expand their business. Sellers on Amazon and companies on other platforms seeking fresh growth prospects can use this tool.
Businesses interested in (DSP Demand Side Platform) often have substantial financial resources. They have the means to expand their operations by increasing brand recognition and reaching new audiences both on and off Amazon. These brands have the capacity to move outside Amazon's platform using Amazon DSP advertising.
Different Types of Amazon Demand Side Platform Advertising
For media ads, Amazon DSP advertising offers a variety of possibilities. To advertise your brand/products, you may create campaigns utilizing audio, video, display ads, or a mix of these.
Although brands frequently upload their own content, Amazon does provide advertisers with creative resources. You'll have access to display image ad tools as well as a free video creative builder. These resources have a variety of styles that you can utilize. Sellers can ensure that their adverts are consistent with their brand's style and image when they use them properly.
How can Amazon DSP Advertising help your business?
Amazon Demand Side Platform Advertising uses its Amazon-owned and partnered assets to reach audiences on and off the Amazon platform.
This broadens the reach of DSP advertisers and boosts their ability to promote their brand to a larger audience.
The Amazon Marketplace and IMDB.com are both prominent Amazon publishing applications/streaming sites. Their ads can also appear on other subsidiaries that they own.
Advertisers may select who they want to interact with and how best to reach their target consumers. They can do this now that they have access to so much data. To capture your audience's attention, you must first understand who they are. You must consider elements such as demographics and behavior. This can help you capture your target consumer and effectively organize your advertising along the buyer's journey.
Remember that Amazon owns a number of online items and has DSP advertising partnerships with a range of websites, applications, and businesses. Every day, millions of people browse Amazon's marketplace. There are several growth prospects and limitless possibilities with Amazon-DSP.
You'll get access to a dashboard to track your advertising progress/statuses when conducting campaigns. You can use metrics like add to list (ATL) counts, new-to-brand (NTB), and detail page visit rate (DPVR) to assess the performance of an Amazon-DSP campaign. In addition, you can use KPIs to track ad performance such as reach, frequency, and viewability.
You can use these indicators to compute ROAS, optimize advertising strategies, and provide the groundwork for future marketing initiatives.
Why is Amazon the Best Demand Side Platform?
The ad buying process of this platform is programmatic. This means Amazon's algorithm bids on the best ad spots (on and outside Amazon) based on your budget, base/max bid, and target audience. It's simple to grow the process because it's automated. And, because the algorithm is always learning from Amazon customers' behavior, the more you use it, the more precise the targeting will become.
DSP is advantageous in that it is not limited to advertise on Amazon.com and other Amazon-owned and controlled domains like IMDB. Amazon's DSP allows you to advertise throughout the internet. You can run over-the-top (OTT) advertisements when someone is streaming on one of their smart devices. This is definitely the easiest method to get advertising inventory on Amazon-owned products like the Kindle or Fire TV. This is how you can access these markets if you've always wanted to.
How can Amazon DSP Advertising help boost your sales?
Amazon Demand Side Platform Advertising is Unlike traditional Amazon ads which target specific keywords or ASINs within the Amazon Marketplace. Amazon-DSP ads retarget customers based on demographics, location, interests, categories previously browsed, and previous product views. It also bases its data on consumers' previous purchases, device types, and more. The six options for audience targeting are:
These are buyers who have shown high intent to buy within your product-subcategory within the past month.
These are consumers who have a search history and previous purchases related to a particular lifestyle. They can be interested in skincare routines, or they can be pet owners.
These are buyers who recently looked for products similar to yours.
These are consumers who previously searched, viewed, or purchased your product or a brand competitor's product.
5. Audience Lookalike
These are shoppers who match the profile and purchasing behavior of your previous customers.
6. Advertiser Audiences
Advertisers provide lists of customers and potential buyers.
Benefits of DSP Automation
The self-service DSP option is ideal for businesses that have had success with their Amazon advertisements. These are for brands who want to expand their reach beyond Sponsored Products, Brands, and/or Displays.
While you and the agency you employ manage the self-service option, the ad purchasing process is programmatic. This means that you must do a lot of things ahead of time to set up the parameters of the campaigns you'll be running. Once these ads are online, your agency will most likely handle the day-to-day monitoring, reporting, and optimization.
Because you'll be testing creative (both copy and graphics) sites where your ads are visible, optimization differs from other types of advertising.
Amazon Managed Service (DSP)
To get started, the Amazon managed-service option is automated and requires a minimum ad spend of $35,000 – $50,000.
Amazon employees operate in the background and must identify the most effective advertising options for you. You can run advertisements on Amazon Marketplace, Kindle, Fire TV, Twitch, and other non-Amazon (but Amazon-owned and managed) sites all across the web. This ensures that your brand's products reach your target consumers.
Why should you use DSP over Amazon’s PPC advertising features?
Amazon's DSP isn't only for Amazon advertising. Its network has several high-quality websites that you may target with pinpoint precision using its algorithm. PPC advertising is a type of advertising in which the advertiser pays a fixed charge each time a customer clicks their ad. DSP advertising, on the other hand, isn't necessarily clickable.
Amazon advertising has two areas, one for PPC and the other for Amazon DSP, both of which are available to non-Amazon vendors. Using the DSP network, you pay a cost per thousand displays. Instead of paying for each click, you pay for each impression. This implies that your advertisement might be visible to a large number of potential clients. Rather than merely generating clicks, pay-per-impression advertising is intended to reach a larger audience.
This goes great with the DSP's "programmatic" section. This indicates that your pricing is based on a dynamic CPM model. The advantage of employing a Cost Per A Thousand model is that advertisers may modify the price of their bids automatically. Automation is the cornerstone of a flourishing, profitable business – especially an internet one – in a world where "manual" is frequently synonymous with "inefficiency." Your bidding and ad placement processes may be automated with programmatic advertising.
Advertisement placements are worth different amounts of money. Its value is affected by competition, inventory, season, and even the time of day. An advertiser's time and work can be better spent if a model is put up to automatically alter the price of their offer. Amazon sellers aren't the only ones who can use a DSP. These technologies may be used by non-Amazon vendors to reach a wide range of customers, both on and off the platform.
Questions & Answers About Amazon Demand Side Platform Advertising
1. Should I try Amazon DSP Advertising?
Programmatic advertising spent on video, social media, and native ads is growing at a double-digit rate. Advertisers will increase their programmatic average spending as a result of technical improvements. The easiest approach to think of Amazon-DSP is as the next step in expanding your existing brand outside Amazon. However, for new sellers, Amazon-DSP may not be the best option.
If you're a brand looking to expand your Amazon business, SellerApp's PPC management services are a good option.
Our experts know how to get the most out of your money by maximizing sales and exposure. Whether it's lowering ACoS, supporting growth to improve sales and income, or utilizing various sponsored advertising to maximize ROI, we got you covered!
2. How big should my budget be to use Amazon DSP?
Any DSP is aimed at sellers who already have a business up and going. While investing in a DSP might be beneficial to your company, it does not imply you should forsake all of your past campaigns.
3. What is the price of Amazon DSP?
A small retargeting campaign will cost roughly $3000. However, this is only a test to evaluate if DSP is right for you. This is a potent marketing tool that has the potential to change your company's fortunes around. If your first campaign is a success, you may easily increase your budget if necessary.
We’re co-sponsoring a significant eCommerce event–Helium 10’s first ever SELL + SCALE SUMMIT happening on September 19-22, 2022, at the Virgin Hotel. We’re not going alone. Here are some friends who’ll be there with us: Walmart, Amazon, Assembly, Pacvue, and so much more.
Oracle's NetSuite ERP software is a cloud-based solution that enables businesses to scale and quickly expand operations. Key functional areas like financial management, revenue management, inventory management, order management, billing, e-commerce, and CRM are integrated and automated by NetSuite.
To stay viable, software companies rely on recurring income from contract maintenance and licensing. To gain success, managing and enhancing these predictable sources is crucial. However, due to their reliance on antiquated, cumbersome technologies, many software companies today suffer revenue losses and client churn