Amazon Demand Side Platform: A Guide for E-commerce Brands

E-commerce brands that rely on Direct-to-Consumer efforts can still benefit from Amazon advertising beyond the marketplace. The Amazon Demand Side Platform (DSP) enables companies to create video or display ad campaigns that leverage Amazon’s vast audience and data collection while directing targeted customers to any website the brand chooses.

Amazon advertising is crucial for winning on the platform. However, Amazon DSP extends this reach, offering brands a powerful way to expand their customer base beyond Amazon. This guide explores how to use Amazon DSP and how it can enhance your advertising strategy.

What is Amazon’s Demand Side Platform?

Initially known as the Amazon Advertising Platform (AAP), Amazon DSP has gained popularity due to its ability to automate the buying and selling of online advertising. This programmatic approach allows advertisers to bid automatically on ad inventory, including product display ads, video, mobile, and search ads.

Similar to platforms from Google and Adobe, Amazon DSP is designed for high-volume advertisers looking for a scalable digital media campaign. With its flexibility and broad reach, Amazon DSP is ideal for brands with significant advertising budgets and a clear target audience.

Amazon DSP can help grow your brand

Amazon DSP provides brands with extensive reach, allowing ads to appear on:

• Amazon-owned sites like IMDb and Twitch
• Amazon devices such as Fire TV and Kindle
• Amazon.com and its marketplace
• Third-party websites within the Amazon DSP network

The Amazon advertising platform (AAP) also offers powerful targeting options by leveraging Amazon’s extensive shopper data. Advertisers can segment audiences based on demographics, location, lifestyle, shopping behaviors, and past interactions with Amazon.

Additional benefits of Amazon DSP include:

• Brand protection: Ensures ad placements are on high-quality websites with safe content.
• Advanced data insights: Provides advertisers with detailed reporting to optimize campaigns in real time.
• Cross-channel advertising: Enables brands to connect with consumers beyond Amazon’s marketplace.

Amazon DSP vs. Sponsored Display

While both Amazon DSP and Amazon Sponsored Display help brands reach customers, they serve different purposes:

• Amazon Sponsored Display: Limited to product display and sponsored brand ads that drive traffic to Amazon listings.
• Amazon DSP: Available to any company, regardless of whether they sell on Amazon. Ads can drive traffic to external websites or Amazon listings.
• Budget requirements: Sponsored Display ads start at $1, whereas Amazon DSP campaigns require a minimum spend of $35,000 for managed services.
• Customization: Amazon DSP allows full creative control over ad design, whereas Sponsored Display uses pre-built Amazon templates.

Learn more about Amazon Sponsored Display in this detailed guide.

Amazon DSP is open to most brands

Any brand can use Amazon DSP, even if they don’t sell on Amazon. However, due to the platform’s complexity and budget requirements, many businesses work with an Amazon marketing agency or service provider for support.

Companies with independent e-commerce stores can leverage Amazon DSP to target Amazon shoppers and drive traffic to their own websites, avoiding revenue-sharing with Amazon.

Amazon DSP offers extensive ad-targeting options

Amazon DSP allows advertisers to target specific audiences using Amazon’s extensive shopper data. Targeting options include:

• Contextual Targeting: Targets shoppers viewing products related to your brand.
• In-Market Targeting: Reaches customers who have recently browsed or purchased relevant items.
• Lifestyle Targeting: Identifies shoppers based on interests such as fitness, travel, or gaming.
• Remarketing: Shows ads to users who have previously searched for or viewed your products.
• Audience Lookalike Targeting: Targets users with similar behaviors and demographics as your existing customers.
• Advertiser Audience Targeting: Allows brands to upload customer lists for targeted campaigns.

How Amazon DSP pricing works

Unlike Amazon Sponsored Display, which operates on a Pay-Per-Click (PPC) model, Amazon DSP follows a Cost Per Mille (CPM) pricing structure. This means advertisers pay for every 1,000 ad impressions rather than per click.

The Amazon advertising platform (AAP) uses automated bidding for ad inventory. Advertisers set bid amounts based on their campaign goals, balancing costs and reach to maximize return on ad spend (ROAS).

Choosing the right Amazon DSP ad format

Amazon DSP offers multiple ad formats to suit different campaign objectives:

• Dynamic eCommerce Ads (DEA): Links directly to an Amazon product detail page.
• Responsive eCommerce Creatives (REC): Promotes up to 20 ASINs in multiple ad sizes.
• eCommerce Custom Image Ads: Enhances standard ads with brand-specific images and copy.
• Custom Image Creatives: Allows advertisers to design unique ads directing traffic to any website.
• Video Ads: Includes online video placements and streaming TV ads.

Working with an Amazon DSP partner

Brands can access Amazon DSP through two options:

1. Managed-Service by Amazon: Requires a $35,000 minimum spend and includes a 15% management fee.
2. Self-Service through an Amazon DSP partner: Often available via marketing agencies that pool advertiser budgets to meet minimum requirements. This option provides greater control and lower management fees.

Expand your reach with Amify

Navigating Amazon DSP can be complex, but partnering with an expert agency can streamline the process. Amify helps brands optimize their Amazon advertising platform (AAP) strategies, from campaign execution to fulfillment and data analysis.

Get started today with a free consultation, or visit Amify to learn more.we can help you reach your goals. Get started with a free consultation today.