What Is Amazon DSP? (How It Aids In Business Growth)

Vendors on Amazon Marketplace are aware of how competitive the market can be and how it can occasionally be very challenging to reach customers. As a solution, most turn to ad services such as Amazon DSP. If you are new to Amazon DSP and want to learn more about the service, this post is for you.

One of Amazon's advertising solutions is the Demand Side Platform (DSP), which lets you display more precisely targeted ads. By using the service, you can reach new and existing audiences on Amazon Marketplace and other marketplaces. Even though Amazon receives billions of visits every month, it can take a lot of work to get sales due to the competitive nature of the platform.

In light of this, it's understandable that Amazon sellers would seek other channels to promote their products. This is where Amazon DSP comes to play—its sole purpose is to capture non-Amazon audiences and entice them to shop with you on Amazon, thereby expanding your clientele. If this sounds interesting, read on.

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What Is Amazon DSP?

If you are an Amazon vendor, you understand the big role that ads play in boosting your visibility and sales. Amazon has a long list of ad solutions that you can use to help boost your sales on the platform. If this, however, doesn't seem to work, you could try Amazon DSP. With Amazon DSP, you can reach customers even outside of Amazon. This will significantly affect your store's visibility and potentially boost your sales.

Ad formats on Amazon DSP are flexible. Ad formats include mobile banners, mobile interstitials, desktop displays, in-stream videos, photos, text, and more.

Even if you don't sell anything on Amazon Marketplace, you may still utilize Amazon DSP to retarget potential customers and build brand awareness. One reason why Amazon DSP is a great ad solution is that Amazon uses its extensive pool of user data. Unlike businesses like Google and Facebook, which purchase user data to aid in ad targeting, Amazon has first-hand knowledge of what exactly customers are purchasing. As a result, Amazon DSP advertising is more precise and well-targeted than the competition's.

The Difference Between Amazon DSP and Amazon Sponsered Display Ads?

If you have been using Amazon Ad services for some time, you may be aware of Amazon Sponsered Display Ads. If you don't know about Amazon Sponserd Display Ads, they are just like other Amazon ads, only that they do not correspond to keyword searches.

This is to mean that if you were to search for a product on Amazon, the ad would be displayed regardless of what your search was. This is unlike other ad options, such as Sponsered Product ads and Sponsered Brand Ads, which will display an ad based on your Amazon search.

So what's the difference between sponsored display ads and DSP ads? Sponsored Display Ads on Amazon are controlled through Seller Central and offer limited ad targeting options. However, Amazon DSP advertising provides highly specific targeting possibilities, making them a potentially more efficient choice for some businesses.

Another difference between Amazon DSP and Amazon Sponsered Ads is in the pricing model. Amazon DSP does not follow the pay-per-click model. Instead, it follows a cost-per-impression model, which means you pay every time a user sees your ad—regardless of whether the user interacts with it or not.

What makes Amazon DSP a superior option is that ads are based on user behavior. This means that ads will be shown based on user activity, such as which categories were viewed, which product detail pages were viewed, and which products were added to but not ultimately purchased.

How Does Amazon DSP Help In Ad Targeting?

One of the significant benefits of Amazon DSP is the granular ad targeting you get. With Amazon DSP, you can target ads based on criteria such as geographic location, date and time, and demographics.

How Much Does Amazon DSP Cost?

Amazon DSP is available to all Amazon sellers. In contrast to other advertising models, such as pay-per-click (PPC), Amazon DSP can only be operated on behalf of a seller or by a registered agency authorized by Amazon. Another caveat to Amazon DSP is its colossal price.

If you are planning on using Amazon DSP, you need to have a minimum budget of $35,000. There is some wiggle room in terms of spending caps for the partner agencies authorized to manage advertising campaigns for clients using Amazon DSP. However, in practice, this is only for large brands that are getting close to maxing out their ad potential on Amazon and therefore need to look beyond the platform to continue scaling.

What Are the Different Types of Amazon DSP Ads?

As aforementioned, Amazon DSP presents a wide range of ad formats. The following are the available options.

Mobile Banner Ads
Image & Text Ads
In-Stream Video Ads
Mobile Interstitial Ads
Desktop Display Ads

Where Do Amazon DSP Ads Appear?

You may have heard that Amazon DSP ads help you reach customers outside of Amazon. You may, therefore, wonder where the ads appear. Amazon DSP advertisements can be shown in the following places.

Amazon Fire TV.
Various Apps.
IMDB.
Third-party Exchanges.
Amazon Marketplaces.
Published Partners.

Is Amazon DSP Worth It?

Given its massive cost, you may wonder if Amazon DSP is worth it for your brand. What makes Amazon DSP a better marketing solution is the granular ad targeting you get. This can be a massive boost for your brand, considering that ads not only run on Amazon but also on other platforms such as ads and streaming services such as IMDB.

Since Amazon Marketplace is one of the most competitive marketplaces, sellers there need to exploit any advantage they can get over their rivals. You have to take advantage of Amazon DSP if your marketing budget can handle the massive investment it requires.

Bottom Line

Amazon DSP is an ad service by Amazon allowing you to have more granular control over your ad targeting. If you are a vendor on Amazon Marketplace, you can use DSP ads to capture new customers on and off Amazon. Amazon DSP ads are not based on keyword searches; rather, they are based on user behavior. Keep in mind that using Amazon DSP will cost you a whopping $35,000, so remember that before deciding to use the service.