In the best selling platform like Amazon, with millions of sellers vying for attention, making your brand shine takes a lot of work. But don’t worry. There’s a powerful solution: the Amazon Demand Side Platform (DSP). This is one of the best Amazon online marketing services offered for every user whether they are sellers on this top marketplace for selling products or not.
By harnessing the potential of Amazon’s DSP, you can reach and engage both new and existing audiences, both on and off the Amazon platform. With a comprehensive advertising strategy, you can create a strong brand presence and capture shoppers’ interest at every stage of their journey. Join us as we’ll discover the world of Amazon DSP and explore:
Get ready to unlock untapped opportunities and connect with your target audience like never before with this Amazon DSP review.
Understand Amazon Demand Side Platform – What is Amazon DSP
The Amazon Demand Side Platform (DSP) is a part of the Amazon ad system that allows advertisers to reach and engage with audiences both on and off the Amazon platform. This system is driven by the marketplace, not the Amazon Retailer, so to differentiate between the two, read our article about Amazon vs Amazon Marketplace comparison.
This Amazon advertising platform provides access to a wide range of advertising formats and targeting options to help brands effectively promote their products or services to relevant customers. Are you a beginner on Amazon? If you don’t know which items to sell on this platform, check our list of best products to sell on Amazon.
By using these Amazon marketing services, you can reach audiences on:
Amazon website
Fire TV
IMDb
Freedive (IMDb Streaming)
Kindle
Apps
Published partners
Twitch
Third-party exchanges
Digital Signage Ads
Amazon demand side platform aims to help advertisers maximize their advertising efforts by delivering targeted ads to specific audiences, driving brand awareness and ultimately, sales. It empowers brands to take control of their advertising campaigns and make data-driven decisions to reach their marketing goals. If you are new to Amazon advertisements, you can gain deeper insights into this marketing service via our article on Amazon ads guide and best practices.
Here are some demand-side platform examples if you wonder what it looks like.
Amazon demand side platform advertisement on Twitch
Amazon DSP key features
DSP offers Amazon advertisers a range of advanced targeting capabilities and access to Amazon’s vast audience data. So, if you want to know which features Amazon demand side platform offers, check the list below.
Advanced targeting: The Amazon DSP targeting provides sophisticated audience targeting options. That allows advertisers to reach specific customer segments based on demographics, interests, behaviors, and purchase history. This helps maximize ad relevance and engagement.
Wide ad inventory: The DSP offers access to a vast inventory of ad placements across Amazon-owned sites/apps and third-party websites/apps through the Amazon Publisher Services network. This enables advertisers to extend their reach to a broader audience.
Programmatic advertising: The demand side platform leverages programmatic technology, enabling automated ad buying and real-time bidding. This improves ad efficiency, allowing for precise ad delivery and optimized campaign performance.
Data-driven insights: The Amazon demand side platform provides robust reporting and analytics tools, offering valuable insights into ad performance and customer behavior. Advertisers can track key metrics, measure ROI, and make data-driven optimizations.
Pricing model: The pricing model of Amazon Demand Side Platform is typically based on a cost-per-thousand-impressions (CPM) basis. Advertisers set a maximum bid they are willing to pay for every thousand ad impressions served. The actual cost per impression is determined through an auction-based system, where advertisers compete with each other in real-time to win ad placements.
Availability: Amazon demand side platform is accessible to advertisers whether they sell products on Amazon or not. It offers two options: self-service and managed-service. In the self-service option, advertisers have complete control over their campaigns. On the other hand, the managed-service option is ideal for businesses seeking access to Amazon DSP inventory along with consultative service.
There are two main audience segments available on Amazon DSP:
Advertiser audience (utilizing your company’s first-party data)
The Advertiser Audience option is ideal if you possess ample customer and prospect data. By employing pixels, DMP audience transfers, or CRM data, you can effectively reach Amazon customers who have already interacted with your brand.
Amazon audiences
Through Amazon’s Audience Solutions, you can target audiences based on demographic details such as age, income, education level, behaviors, and more. These features enable you to effectively tailor your marketing efforts and engage with specific audience segments on the platform.
Amazon audiences segments
Here’s a brief explanation of each type of Amazon-based audience segment:
Amazon-based audience segment
Contextual
This audience type allows you to target customers who are viewing products within specific categories in Amazon's stores.
Custom
Custom audiences are created based on interactions with your brand's products or related products.
Demographic
This audience type is based on demographic features such as age, gender, education, geography, and more.
Device
With device targeting, you can focus on users visiting from specific devices or browsers.
In-market
In-market audiences consist of groups of customers who have been actively browsing for products within a certain category on Amazon in the last 30 days.
Interest
This audience type is based on the browsing and buying behavior of shoppers, indicating their preferences and interests.
Life event
Life event audiences target customers who are shopping for products related to specific milestones or life events.
Lifestyle
Lifestyle audiences are based on shopping and viewing activities that suggest certain lifestyles, such as gamers, movie enthusiasts, foodies, and more.
Lookalike
Lookalike audiences consist of shoppers who have similar purchase and browsing histories to your existing customers.
Third-party
Third-party audiences are based on off-Amazon activity data, providing a more comprehensive view of relevant audiences both on and off the Amazon marketplace.
Benefits of using Amazon DSP
Regarding advertising solutions, Amazon’s demand-side platform offers many benefits that empower businesses to reach their target audience and maximize their marketing efforts.
You may wonder if Amazon DSP is worth it since it can add some costs to your Amazon seller fees. Still, trying to figure it out? Take into account the following advantages:
Advanced targeting
The advanced targeting capabilities offered by Amazon demand side platform provide users with a powerful tool to precisely reach their desired audience. Businesses can effectively tailor their messages to specific customer segments by utilizing options such as in-market audiences and retargeting.
In-market audiences target customers who have shown a strong intent to purchase specific products or services, ensuring your ads reach those most likely to convert. Retargeting, on the other hand, enables you to reconnect with users who have previously engaged with your brand, keeping your products or services top of mind and increasing the chances of driving them back to make a purchase. These targeting strategies help businesses effectively engage with their desired audience and drive higher conversion rates.
What is more, with the increasing prevalence of multiple devices in consumers’ lives, Amazon DSP also offers cross-device targeting for effective advertising. Amazon DSP enables users to reach potential customers across various devices, including smartphones, tablets, and desktop computers. This capability ensures that users can engage with their target audience wherever they are. Then, they can maximize brand exposure and increase the likelihood of conversions.
Market data for your business
Amazon demand side platform offers users valuable market data through its reporting and analytics features. By tracking key metrics and gaining audience insights, advertisers can understand more about their target audiences. This data empowers users to adjust their marketing strategies and ad campaigns accordingly. Businesses can leverage this market data to enhance customer targeting and drive higher conversion rates.
For instance, with audience reporting in Amazon DSP, you can identify which audience segments drive the most conversions and revenue. Let’s say you’re running a campaign for a beauty product, and audience reporting reveals that the 25-34 age group with an interest in skincare has the highest conversion rate. Armed with this information, you can allocate more budget to target this specific audience, create tailored ad content to resonate with them and drive even better results. Audience reporting empowers you to make data-backed decisions that maximize the effectiveness of your advertising efforts.
Another benefit of Amazon DSP is the ability to drive more conversions. The platform allows users to target audiences most likely to convert based on their purchase behavior, interests, and previous interactions with the brand. Businesses can focus advertising efforts on these high-potential customers to increase their sales performance.
Amazon audiences access
Amazon DSP allows users to leverage Amazon’s vast database of customers, even if they don’t sell products directly on the platform. This is a significant advantage for businesses. By utilizing different types of custom audiences, users can tailor their ads and content to resonate with specific customer segments. This highly targeted approach enables businesses to reach their target audiences and expand their customer base.
Amazon DSP ads specifications
Amazon demand side platform users can create and customize their ads based on specific specifications. Users can define the ad format, such as display, video, or audio, and set the size, duration, and resolution requirements accordingly. Additionally, users have control over the creative elements, such as images, videos, headlines, and call-to-action buttons. This level of control allows businesses to craft advertisements that align with their branding and effectively communicate their unique selling propositions.
By adhering to Amazon’s DSP ads specifications, users can ensure that their ads are optimized for performance and seamlessly integrated within the platform. This level of customization and alignment with platform standards enhances the overall user experience and maximizes the impact of the ads.
Brand Awareness development:
Utilizing Amazon DSP can significantly contribute to developing brand awareness for businesses. The platform provides access to Amazon’s massive audience, which offers extensive reach and exposure.
How to Access Amazon Demand Side Platform
Using the Amazon DSP program to launch programmatic advertising campaigns is a great way to reach Amazon audiences and beyond. Let’s learn how to use Amazon demand side platform with the steps below:
Step 1: Set up an Amazon account/Amazon DSP login
The first step is Amazon DSP login. You can create a new account if you don’t already have one. Visit the Amazon website and click on the Sign In or Create Account option to get started. Provide the required information and follow the prompts to set up your account. To learn more about the login steps, check Sell on Amazon guide.
Step 2: Submit your application for Amazon DSP access
Once you have an Amazon account, you need to apply for access to the Amazon DSP console. Visit the Amazon Advertising website and navigate to the DSP section.
Register for Amazon DSP
Fill out the application form detailing your business and advertising objectives. Apply and wait for approval from Amazon.
Request permission for DSP
Step 3: Integrate with Amazon ads platform
Once your application is approved, you will need to set up yourself as An Advertiser. Follow the instructions provided by Amazon to complete the integration process:
Navigate to the Entity view and click on the New Advertiser button.
Fill in the required information and save.
Wait for Amazon to review and approve your request
Set up an Advertiser account
Step 4: Set up & manage your campaign
Once you become an advertiser, you can start setting up and managing your campaigns on the Amazon demand side platform. Follow the steps below to set up your advertisement successfully.
Create a New Order:
Once approved as an advertiser, start creating a new order (campaign).
Specify the name, order external ID (optional), flight dates and time, and any comments.
Create New Order
Choose the campaign goal and key performance indicator (KPI) that align with your objective.
Set the budget and delivery settings, including the option for automated budget optimization.
Set budget
Set Up Line Items, which are like ad groups:
Provide basic information for the line items, such as name, flight dates and time, and product categories.
Create New line item
Choose the audience type, selecting from pre-built Amazon audiences or defining a custom audience based on criteria.
Configure targeting settings, such as frequency, user location, third-party pre-bid targeting, and supply sources.
Upload Your Creatives:
Choose ad type and start your creatives to the Amazon DSP.
Create New creative
Ensure your creatives adhere to Amazon DSP’s guidelines, including having a brand logo, product image, and clear call-to-action (CTA).
Customize your creative
Assign the creatives to the appropriate line items.
Wait for the approval process to complete.
Approved creative
Your campaign is ready to go live once your creatives are approved and assigned to the appropriate line items.
Step 5: Optimize and track performance
To maximize the effectiveness of your campaigns, continuously optimize and track their performance. Leverage the reporting and analytics features the Amazon DSP provides to gain insights into campaign metrics, audience behavior, and conversion rates. Use this data to make informed decisions and refine your strategies for better results. If you don’t want to pay too much for ineffective ad campaigns, read our guide on how to avoid Amazon advertising mistakes to successfully optimize your ads.
Amazon DSP Ad Types
1. Responsive eCommerce Creative (REC)
In January 2021, Amazon DSP advertising introduced Responsive eCommerce Creative (REC), a prevalent ad type. With REC, advertisers can add up to 20 ASINs and choose from 10 supported ad sizes, which automatically adjust based on goals and formats. Plus, REC ads offer simple ad creation and optimization through machine learning. If a product becomes unavailable, the corresponding ASIN is paused while other ASINs populate the ad list.
Responsive eCommerce Creative
2. Static ads
Static ads are traditional image-based advertisements that do not include dynamic elements or videos. These ads direct users to an Amazon storefront, product detail page, or customized landing page. They can effectively convey a clear message and showcase product features or promotions. However, Static ads lack dynamic elements and require explicit calls-to-action, such as “Shop Now,” to prompt user engagement.
Amazon Static ads
3. Video ads through DSP
Amazon demand side platform offers advertisers the opportunity to run video ads on both Amazon-owned and third-party websites. With the demand side platform, you can choose to display your video ads within video content (in-stream video) or as part of a display ad (out-stream video).
Furthermore, you have the flexibility to link your video ads to either an Amazon product detail page or your own website. This integration with DSP enables you to leverage Amazon’s vast audiences and effectively target the desired shoppers for maximum impact.
Video ads through DSP
4. Over-the-top video ads (OTT)
Amazon’s OTT ads are also available on the DSP platform. With the rise of streaming services, over-the-top video ads provide a unique opportunity to reach audiences who consume content on streaming media and connected TV devices. These full-screen ads effectively target millions of viewers on connected TV sources, including the Amazon Fire TV Stick.
While you can tailor your ads to specific Amazon audiences, it’s important to note that they are not clickable, focusing on delivering impactful brand exposure and engagement. The rise of streaming services further amplifies the effectiveness of OTT ads in reaching and engaging with the target audience.
Over-the-top video ads
Amazon Demand Side Platform: FAQs
What does Amazon DSP mean?
Amazon DSP stands for Amazon Demand Side Platform. It is a programmatic advertising platform allowing advertisers to buy display, video, and audio ads across Amazon-owned sites and apps or third-party sites and apps.
Amazon DSP advertising is designed for advertisers who want to reach Amazon customers with highly targeted advertising. Through Amazon’s DSP, advertisers can target specific audiences based on various factors such as demographics, behaviors and interests.
Who can use Amazon’s DSP?
Amazon DSP is designed for advertisers who want to reach Amazon customers with highly targeted advertising. Whether they are sellers on the marketplace or not, they still can apply for DSP.
What ads can I buy through Amazon DSP?
Through Amazon DSP, advertisers can buy many ad formats, including display ads, video ads, and audio ads.
Display ads are often in the form of static images, animated GIFs, or HTML5 creative.
Video ads can be streamed and played on desktop or mobile devices, outside or inside the marketplace.
Audio ads can be played on Amazon-owned and third-party music streaming services.
Conclusion
To put it all together, Amazon demand side platform provides businesses with a powerful advertising solution, bringing about many benefits. With advanced targeting options, DSP offers unparalleled opportunities for success. By leveraging the platform’s features, businesses can continuously refine their campaigns, ultimately driving exceptional results.
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