Thousands of people are browsing Amazon at any given time, and the leading online retailer not only sells millions of products, but also offers numerous digital services and solutions.
So, if you’re interested in digital advertising, then you may be wondering: what is Amazon DSP? I also thought about this, so I did more research, and here’s what I found out!
What Is Amazon DSP In 2024?
Amazon DSP is a demand-side platform used by brands to connect with more customers through dynamic digital advertising in 2024. Essentially, this platform uses programmatic advertising, relying on data to help advertisers purchase the right ad and video placements within their budget. Amazon DSP is available for advertising on and off of Amazon, thanks to exclusive insights on shopping signals.
If you’re intrigued by the idea of advertising on Amazon, keep reading to discover more about Amazon DSP, including the ad types, and what customer data it uses!
Why Choose Amazon DSP?
Amazon has long been known as a wildly successful e-commerce company, but it’s not just a place to get your online shopping fix.
Both new and existing sellers can expand their brand presence with this DSP programmatic advertising opportunity.
This program uses automated technology for buying ad space rather than manual media buying methods traditionally used by news platforms.
Amazon DSP is becoming more popular with Amazon sellers, as the retailer continues to flourish.
In fact, there are more than five million sellers on Amazon Marketplace and there aren’t any signs of this dwindling in the near future.
When those third-party sellers want to stand out on Amazon, they go straight to the source and advertise directly on the website and app, engaging both new and returning customers.
The key benefits of Amazon DSP include:
- Advanced targeting through demographics and segmentation
- Additional targets and greater customisation compared to sponsored brand ads
- User-built audiences to target competitors customers
- Retargeting for brand growth
With these benefits, Amazon DSP serves as a cutting-edge advertising solution that works with sellers of all sizes, using innovative insights to target consumers on both Amazon and third-party sites.
How Does Amazon DSP Work?
Amazon DSP guides sellers to smart advertising solutions based on metrics, as insights and performance reporting are included with the software.
The key thing to remember about Amazon DSP is that the software offers automated media buying from numerous sources on one centralized software.
When an Amazon seller registers for DSP, they are connected with an Amazon Ads account executive to discuss their goals.
They also have access to an introductory course, where they learn how to use programmatic advertising to their advantage.
Audio, video, and display ads are available for purchase through Amazon DSP, with a virtually unlimited inventory of digital ad space for businesses that are willing to be creative and follow the data.
Although sponsored brands, products, and display ads may not allow segmentation and targeting through date, time, location, and other demographics, Amazon DSP takes things to the next level with more detailed targeting.
DSP companies can look at in-market audiences, specific domains, ZIP codes, A/B testing creative, ad placement, ad frequency per unique user, and mobile vs. desktop ads.
Something else to consider about Amazon DSP is that the company constantly monitors bid evaluations, and reviews sites to ensure brand safety and quality standards are always upheld.
Who Can Use Amazon DSP?
Amazon’s demand-side platform can be used by advertisers, regardless of if they sell goods on Amazon or not.
Users can choose from managed-service or self-service.
For smaller sellers who want full control of each campaign, self-service is usually the better option, especially because there isn’t a minimum spend.
On the other end of the spectrum, Amazon DSP managed-service usually requires at least $35,000 USD spend on advertising, although the minimum varies by country.
The managed-service gives companies with minimal experience in programmatic ads extra support and consultation to keep progressing toward their goals.
One other note is that Amazon aims to keep its DSP software open to businesses both big and small.
Although the minimum spend requirement for managed-service may be out of budget for some small companies, self-service accounts on Amazon DSP don’t have any management fees.
What Are Amazon DSP Ads?
The neat thing about Amazon DSP is that it gives companies the chance to create custom ads or use exclusive Amazon e-commerce options, such as the video creative builder.
Amazon e-commerce creatives may include a provided image or a product image from the listing.
Different elements of the ad, such as the headline and audience targeting, are generated automatically to achieve the best results.
Then there’s the video creative builder, which is free to use, and gives companies the chance to make an engaging ad video using current templates and existing product images.
Also, Amazon DSP has a third-party audience option with over 8,000 segments to choose from.
These ads and insights build brand awareness through a complete funnel strategy on Amazon, and other e-commerce sites, too.
The programmatic advertising platform suggests ad space to buy, and how much to budget for them.
Therefore, whether it’s a video or photo display ad, DSP advertising is more targeted and customized than general Amazon ads.
Amazon DSP is the e-commerce giant’s programmatic advertising software, which is available to companies selling on Amazon and externally, too.
While Amazon offers Sponsored Display ads as a self-service advertising option, Amazon DSP is a more comprehensive platform that offers display, audio, and video ads through programmatic purchasing.