In the rapidly evolving world of digital marketing, running targeted ads is essential to effectively reach potential customers. This is where Amazon DSP (Demand Side Platform) comes into play, a platform that enables advertisers to programmatically purchase display and video ads both on Amazon and beyond.
What is Amazon DSP?
Amazon DSP (Demand Side Platform) is an innovative platform that allows advertisers to programmatically acquire and manage display and video ads. It works both on Amazon platforms and beyond, providing access to Amazon's extensive first-party data. This data enables targeting of detailed and specific audiences, significantly increasing the effectiveness of advertising campaigns. Ads are sold on a CPM basis (cost per thousand impressions). This distinguishes Amazon DSP from classic PPC marketing options on Amazon (Sponsored Products, Sponsored Brands, Sponsored Display).
Difference Between PPC and DSP
The difference between Amazon DSP (Demand Side Platform) and Amazon PPC (Pay-Per-Click) marketing lies in ad formats, objectives, targeting options, and billing models. Here are the key differences:
Amazon DSP
- Ad Formats: DSP includes display and video ads that can be placed both on Amazon platforms and on external websites and apps.
- Objective: It is primarily focused on branding and awareness, aiming to increase brand recognition and reach customers at various stages of the customer journey.
- Targeting: DSP offers more comprehensive and deeper targeting options, including demographic, interest-based, and behavioral segmentation, supported by Amazon's rich first-party data.
- Billing: Billing is on a CPM basis (Cost per Mille), meaning advertisers pay per 1,000 impressions.
Amazon PPC
- Ad Formats: PPC focuses on text-based or product-related ads that appear directly on Amazon search results pages or product pages.
- Objective: PPC is conversion-oriented. It aims to generate immediate clicks and sales and is therefore more performance-based.
- Targeting: PPC targeting is primarily based on keywords. Advertisers bid on specific keywords, and ads are delivered when users enter these keywords in Amazon search.
- Billing: Advertisers pay per click, hence the name Pay-Per-Click.
Which Audiences Can Be Targeted via Amazon DSP?
Amazon DSP enables advertisers to use a variety of audience types to optimally align their advertising campaigns with respective target groups. Here are the individual audiences you can select:
1. In-Market / Lifestyle (Amazon)
This audience focuses on consumers who are actively shopping in relevant categories. It's excellent for targeting customers who have already shown interest in products or services similar to yours.
2. Competitor
You can target consumers who have shown interest in competing products. This allows you to direct the attention of these potential customers to your brand and products through targeted messages and offers.
3. Complementary
Target customers who have recently purchased products complementary to your range. This audience is optimal for leveraging cross-selling opportunities and reaching customers who are likely to be interested in your products as well.
4. Contextual (Amazon)
This option allows you to target customers shopping in their subcategory. It's particularly useful for addressing specific niches or segments within a larger product category.
5. Retargeting
This allows you to re-engage customers who clicked on your products but didn't purchase. Retargeting helps maintain the interest of these customers and lead them to complete their purchase through targeted ads.
6. Remarketing
With this audience option, you can promote repeat purchases by specifically targeting customers who have already bought. This strategy is designed to increase customer loyalty and build long-term relationships.
7. Cross Selling
This audience enables targeted promotions for customers who have already purchased products from your range. You can introduce new or complementary products to maximize customer value and foster customer loyalty.
Each audience type in Amazon DSP is designed to target specific segments of consumers based on their shopping behavior, interests, and interaction with your brand or competing brands. By selecting the appropriate audiences, advertisers can make their campaigns more effective, provide personalized experiences, and ultimately increase conversion rates and ROI.
The Variety of Creatives via Amazon DSP
An important factor for the success of an Amazon DSP campaign is selecting the right creative. Amazon DSP offers a variety of creative formats to provide advertisers with flexibility and diversity in their campaigns. These include Streaming TV ads that are broadcast in real-time to a large audience, and Online Videos that offer a dynamic way to tell stories and present products. Twitch creatives leverage the popularity of the live streaming platform to particularly engage younger audiences. Custom Image allows brands to use individually designed images specifically tailored to their target audiences and campaign goals. Custom Responsive (REC) and Responsive Logo+Headline (REC) are dynamic formats that automatically adapt to different screen sizes and resolutions and already have the "look and feel" of Amazon ads to always ensure an optimal experience.
It makes sense to use and test different creative formats for different phases of the marketing funnel. A sensible overview is, for example, the following:
Where Can Amazon DSP Ads Be Displayed?
Amazon DSP ads have a broad reach and can be placed on a variety of platforms and networks. On Amazon-owned websites like Amazon.com, IMDB.com, and Twitch, they enable efficient and sales-promoting presence in a premium environment. In the mobile world, ads appear in Mobile Apps that have connected their API with the programmatic network, thus offering targeted user engagement. Additionally, ads are placed on desktop and mobile websites of premium and local publishers like "Spiegel". Integration into ad networks like Verizon Media, Google's AdX, Xandr, and Taboola significantly extends reach and enables advertisers to reach a broad and diversified audience.
Why Use Amazon DSP When Sponsored Display Is Available?
The decision between Amazon DSP and Sponsored Display may seem confusing at first. Both appear very similar at first glance, but DSP offers a higher level of control and flexibility that is crucial for many marketers.
Budget Control and Optimization: With Sponsored Display, advertisers have no ability to control budget on specific environments or devices. In contrast, DSP enables precise budget allocation thanks to its granular setup (no minimum value for individual items). Advertisers can optimize their budget and direct it to the tactical measures, environments, and devices that deliver the best results.
Detailed Reports and Insights: Sponsored Display provides no insights into which environment or device performs best. With DSP, advertisers receive detailed reports and can make informed decisions based on concrete data about where their ads are most effective.
Audience Customization: One of the significant limitations of Sponsored Display is the inability to create custom audiences or exclude certain audiences. DSP enables complete control over audience customization and exclusion, allowing advertisers to tailor their campaigns to the specific needs of their target audience.
Customizable Lookback Windows: While Sponsored Display offers no custom lookback windows, these are fully customizable in DSP, enabling more precise and effective audience targeting.
Link Options and Creative Diversity: Sponsored Display ads always link to Product Detail Pages (PDP), whereas DSP ads can lead to Brand Store or D2C. Furthermore, DSP offers a broader variety of creative options compared to Sponsored Display's exclusively Responsive Commerce Creatives.
Conclusion
Through the ability to programmatically and targetedly place display and video ads both on Amazon platforms and across the entire web, Amazon DSP opens up a universe of personalized and effective advertising opportunities for brands and advertisers. In sum, Amazon DSP is not just a tool for advanced targeting and optimization functions, but also a catalyst for improved brand visibility. If you would like to learn more about Amazon DSP, please feel free to contact us via the contact form.