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The Difference Between Amazon DSP and Sponsored Display Ads

Sponsored Display Ads and display advertising through Amazon DSP are the two forms of display ads offered by Amazon. Advertisers can buy ad space on and off Amazon with Amazon Sponsored Display Ads and Amazon DSP. When it comes to eligibility, expense, and control, these two ad categories are not the same. Amazon DPS is a more expensive, but more capable, display ad choice on Amazon.

If you're new to Amazon advertising, you'll want to know the distinctions and similarities between Amazon Sponsored Display ads and DSP ads. When it comes to improving your advertising strategy, understanding these ad functions can help you choose the best option for your company.

Before we look at the differences between Sponsored Display Ads and Amazon DSP, let's first look at each of their key features.

What is Amazon Sponsored Display Ads?

Advertisers working with Amazon Ads are uncovering vast opportunities with Amazon Sponsored Display Ads. It is a self-service advertising solution that helps build businesses by accessing relevant audiences both on and off Amazon.

Sponsored Display is available to all professional sellers, vendors, and agencies who sell on Amazon who are members of the Amazon Brand Registry.

Amazon created Sponsored Display to help sellers broaden their reach and improve their sales by employing easy to create and manage display advertising.

You may enhance product recognition and demand throughout the web with Sponsored Display. Brands can achieve this by addressing the ideal audiences for your business. This includes those who aren't shopping on Amazon at the moment.

You may develop Sponsored Display ad campaigns that promote your complete product catalog with auto-generated and performance-optimized creatives in a few clicks.

The sponsored ads are visible on the following:

  • Product Detail Pages on Desktop and Mobile
  • Customer Review Pages
  • Top of the Offer Listing Pages

What are the Benefits of using Amazon Sponsored Display Ads?

The following are the key advantages of sponsored display ad campaigns:

  • Boost your niche's brand awareness.
  • Increase the number of visitors to a product's details page.
  • Place your greatest product beneath the listing of your competitors.
  • Increase the visibility of new product listings.

If increasing impressions is one of your main goals, Amazon Sponsored Display Advertisement is perfect for you. When you use Sponsored Brands and Sponsored Display in tandem with Sponsored Products, your impressions for new products will increase. This allows you to reach more people in less time. This is crucial in assisting you in transitioning from a beginner to an established player in the field.

Another great reason to utilize Sponsored Display Ads is to boost your appeal in the upper funnel.

You can retarget those who have looked at your products and people who have looked at similar products. It is possible to target buyers who searched for keywords related to your product.

If you use Sponsored Display while your competitors don't, you'll be able to capture more people's attention and lead them down the sales funnel.

Product display advertisements have lower conversion rates because they don't appear on Amazon's Search Engine Results Page (SERP). Your CPCs and overall spending will likely be lower because these advertisements are less competitive than Sponsored Brand and Sponsored Product ads.

Finally, because you may place your ad below the listing of a competitor, you can pit your finest products against their best products. Make sure that your ads target areas where you have a good probability of generating clicks and outperforming other Amazon products.

What is Amazon DSP?

Amazon's demand-side platform is an impression-based display marketing platform. It allows advertisers to buy display, video, and audio adverts programmatically across the internet to promote their products, services, or brands.

Marketers may reach exclusive audiences across Amazon-owned sites like IMDB. You can use prominent publishers' sites via Amazon DSP, which offers inventory from Amazon Publisher Services and third-party exchanges.

It allows marketers to tap into exclusive audiences to massively increase their reach both on and off the site. This helps them broadly target customers than typical sponsored search or PPC advertisements. It is available to both Amazon sellers and non-Amazon sellers.

Why Should You Use Amazon Demand-Side Platform?

Sponsored Ads should always be the first place where your brand invests money, without a doubt.

However, there comes a time when you can't fully use the on-platform demand. That's where Amazon DSP comes in. It lets you grow both on and off Amazon to outside audiences and contextual groups including lookalike, lifestyle, and in-market audience segments.

In other words, it enables marketers to reach consumers beyond those who are actively looking on the site. Amazon DSP target has a broad target. This enhances marketing efforts at every point of the sales funnel by leveraging Amazon's vast first-party data.

Using various techniques of retargeting, marketers may drive top-of-funnel awareness through various audience segments. You can do this while driving the buyers further down the funnel to the consideration and buy stages.

If DTC businesses are ready to contribute their first-party site data to produce Amazon-matched lookalikes, it can become very effective.

Once you've optimized all of the other ad types, it's time to ramp up your Amazon advertising plan, as previously stated. When brands spend at least $25-30K per month on Amazon advertising, You should stack Amazon DSP into your plan (depending on category).

Starting with dynamically created ads and determining which audiences and placements work best for you is a good idea. You must implement lower-funnel retention methods, such as product/brand remarketing, to provide advertisers with a retargeting opportunity to re-engage brand/product viewers.

What are the Benefits Of Amazon Demand-Side Platform?

The Amazon DSP is the only ad platform that allows advertisers to run highly targeted display ads on and outside Amazon. It reaches Amazon customers who explore product detail pages but don't buy.

You can target these ads to customers who are just starting their purchasing trip in a certain category. When done correctly, Amazon DSP advertisements can help a brand's Amazon business—or even their business outside of Amazon—grow.

Here are the reasons to consider advertising on Amazon's Demand Side Platform (DSP) include:

1. Find New Customers

Find new customers on and off Amazon who are actively researching related products with the intent to purchase to increase discoverability and accelerate growth. With relevant dynamic creative advertisements, hyper-target and segment high-value customers based on purchase intent, recency, and consideration period.

2. Reach Buyers Anywhere

Reach buyers wherever they are. Run display advertisements on and off Amazon to reach buyers at all stages of the purchasing process. When utilized properly, Amazon DSP provides dynamic e-commerce creative and audience targeting to reach buyers. This allows marketers to reach a larger audience, increase brand recognition, and demonstrate a high return on investment.

3. Cost-Efficient Ads

Stop wasted ad impressions and make your advertising expenditures work harder. Start small and scale after a few months of data to determine your brand's success on the Amazon-DSP.

Using Amazon's Audience insights, you can discover about your brand's target demographic. You can also learn of their purchase frequency, duration of consideration, as well as gain actionable insights about your product watchers and purchases. Make use of this information and incorporate it into Amazon's overall plan. It will aid bid revisions and boost the likelihood of landing targeted ad positions and audience segments.

4. Dynamic Promotions

With dynamic e-commerce content that looks like an Amazon listing, you can promote new companies, customer reviews, and special offers. CTR and conversions to brand stores and product pages can both benefit from dynamic creatives.

Amazon DSP vs Amazon Sponsored Display Ads

Are you thinking of using ads to enhance your Amazon business's visibility and sales? You should understand the differences between Sponsored Display Ads and Amazon-DSP.

Here are 7 things you need to know about Amazon Sponsored Display vs DSP:

1. Brand Eligibility

Businesses that aren't selling directly on Amazon can use DSP. Sponsored Display Advertising, on the other hand, is only visible on Amazon. Sponsored Display ads on Amazon's marketplaces help advertisers increase sales and brand recognition. Although advertisements may appear outside of the marketplace, they will direct all visitors to your Amazon listings.

DSP advertisers can either direct traffic to an Amazon product listing or to external websites that are unaffiliated with Amazon. As a result, DSP is the most effective approach for firms that don't sell on Amazon to reach Amazon's audience.

2. Sponsored Display and DSP Cost Structure

The price of each ad type should influence where it belongs in your marketing strategy and how you evaluate its effectiveness. The cost structure for DSP ads is based on Cost Per Mille (CPM). This is the average cost of delivering 1,000 ad impressions to your customers. You can implement Sponsored Display ads using a Pay Per Click (PPC) model. This is based on the average cost you pay each time someone clicks on your ad.

CPM or PPC may be advantageous depending on the conversion rates of your adverts. Which cost structure you select may be influenced by your aims, such as conversions vs. brand awareness.

3. DSP and Sponsored Display: Minimum Investment

Amazon help brands with an easy start-up by directing all traffic back to your Amazon listing via Sponsored Display advertisements.

With a $1 minimum purchase, it's simple for any firm to get started and gradually increase their spending before committing.

DSP, on the other hand, needs a larger investment to take advantage of the program's enhanced reporting and audience insights. A minimum monthly spend of $10,000 is required for the self-service advertising solution. A minimum monthly spend of $35,000 is required for the Amazon Managed Services DSP option. Ad campaigns can be fine-tuned by programmatic advertising buying experts with this additional cost.

While Sponsored Display advertising has a low entry barrier, Amazon's DSP program provides a more extensive advertisement option, but at a higher cost.

4. DSP and Sponsored Display Creative Control

Control over creative is one of the more sophisticated options accessible through DSP advertisements.

Amazon Demand-Side Platform ads can be fully customized including the headline, brand logo, and custom-created image. This is to help boost buyers' attention to advertisements and improve CTR.

Sponsored Display advertising develops display ad material that is optimized to provide results automatically. This ad type does not allow for any personalization, regardless of the size of your budget. It does, however, give a lower-maintenance option for firms who do not have the resources or time to design ad creative. This is because it is automatically optimized using your Amazon product information.

5. Custom Audience Targeting

Product targeting, views remarketing, and audience interests are the three targeting options available in Sponsored Display adverts. Instead of requiring marketers to create specific audience segments, Sponsored Display focuses on simple, automated retargeting.

Advertisers who want to create specialized audiences should use DSP advertisements. They can utilize Amazon DSP to create customized segments based on Amazon demographic and user behavior data. They can also create custom audiences with data directly acquired from your clients. This enables them to create audience groups for custom-built, contextual, and highly targeted ads.

While these two different ad formats each have their own set of advantages, they can be used together or independently to generate tremendous results. Sponsored Display audience retargeting ads are a less expensive way to collect performance data for individual ASINs. You can use it to optimize and target DSP campaigns.





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