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In the course of globalization, more and more companies have been established in the German economic area. The companies in the individual sectors are in direct competition with each other and vie for customers. While print media, radio and television were used in the past, online marketing is now being used to arouse customer interest.

Thanks to digitalization, life now takes place in virtual space and ads campaigns can be used to accurately target the right users. In addition to large social media channels such as Instagram, Facebook or TikTok and search engines such as Google, Amazon now also offers a platform that deals with the topic of programmatic advertising: Amazon DSP.

For Amazon sellers, vendors and non-sellers alike, this is an attractive opportunity to draw the attention of the target group to their own brand and products. After all, the online mail order company has enjoyed international success and has around 200 million customers in its Amazon Prime subscription service alone. Advertisements on the e-commerce giant's homepage are therefore making big waves. The ads are also published in countless apps and on other interesting websites.

If you want to increase your visibility and reach, there is no way around programmatic advertising and data-driven marketing. In the following article, we take an in-depth look at Amazon DSP and show you how you can achieve long-awaited milestones with DSP campaigns!

What exactly is Amazon DSP?

The abbreviation Amazon DSP stands for Amazon Demand Side Platform. It can be assigned to the world of programmatic advertising. This type of advertising is becoming increasingly important these days. They are characterized by dynamism and individual targeting and already dominate 80 percent of the European media buying sector.

Machine learning and artificial intelligence are used to trade advertising space. Based on algorithms, visitors to a website are presented with individual advertisements within a few milliseconds. They are tailored to the interests and regional characteristics of the person. The spaces for these sponsored ads are auctioned off. The highest bidder secures the placement.

Such a self-service is provided on the Amazon DSP. The managed service can be used to place display and video ads that appear on countless websites, mobile applications and on the Amazon platform itself. Amazon DSP thus automates the ad buying process and offers companies a simple and extremely effective method of getting to the heart of the customer.

Advantages of the Amazon Demand Side Platform

The Amazon DSP campaigns are an attractive offer for Amazon resellers, private label retailers and online stores that are not represented on Amazon. This is because the Demand Side Platform offers corporate customers unbeatable advantages:

Target groups: Amazon has been able to collect large amounts of audience data over the past decades. By evaluating this data, the e-commerce giant has a detailed understanding of users' purchasing behavior. Advertisers can draw on this knowledge to address new target groups and conduct remarketing with former customers.

Opportunity for non-salespeople: The Demand Side Platform enables advertisers to access the marketing power of Amazon without having a professional account with the online mail order company.

Endless possibilities: In addition to Sponsored Ads, Sponsored Brands, Sponsored Products and Product Display Ads, sellers and vendors also have access to advertising space inside and outside Amazon. The potential of your own advertising portfolio can therefore be fully exploited. Another plus point is that landing pages are no longer required to direct users to Amazon products.

Creative Ads: Today's users are spoiled. Traditional advertising products at best elicit a tired yawn from customers and fail to trigger an action. Users want to be entertained, captivated and fascinated. Creativity is required! With the wide range of display and video ads as well as dynamic e-commerce ads from Amazon, advertisers are hitting the nerve of the times and attracting customers to their own products.

Complete package: Amazon DSP combines countless options in just one tool. Brand awareness campaigns, product awareness campaigns and brand building can be run in the upper funnel. Targeting options for advertisers are available inside and outside Amazon. The shopping cart calculator can also be used to reactivate ready-to-buy customers and suitable target groups using retargeting.

Do the advantages of the Amazon Demand Side Platform appeal to you? Then get in touch with us and we'll explain how you can expand your online presence with targeted sponsored ads.

How does the Amazon DSP work?

In the 21st century, the placement of programmatically controlled campaigns is undoubtedly the key to success. But how does dynamic advertising work? To realize programmatic advertising, a supply side platform - SSP - and a demand side platform - DSP - are always required. While the SSP is used to offer advertising space on your own homepage, the DSP is used to create a link between your own website and a large pool of buyers and sellers. Advertising space is therefore sold on the demand side platform.

Important: The Amazon DSP is not a Amazon PPC campaignsas these are billed per CPC. The Amazon DSP, on the other hand, is billed on the basis of a CPM/TKP. 

The process takes place in five steps

The cooperation between these two platforms relieves advertisers of a large part of the work. The purchase of advertising space, target group targeting and budget planning are all carried out in one place. There is also an interface for retailers and buyers. The playout runs according to a regulated scheme:

  1. Calling up the website of a publisher. The SSP opens the auction for the advertisement.
  2. Bids can be made on the impression on Amazon DSP. These bids are based on the companies' targeting strategies.
  3. The impression is awarded to the advertiser who is prepared to pay the highest CPM.
  4. Display of the advertisement
  5. Ideally, the consumer clicks on the call-to-action and buys the advertised product.

What is particularly interesting is that advertisers have the opportunity to call up statistics and key figures and follow the realization of individual goals at close quarters.

Models of the Amazon DSP

If you decide to advertise with Amazon DSP, you can choose between two models:

Amazon DSP Managed Service

With the Amazon DSP Managed Service, you hand over the reins to Amazon and let them give you a helping hand with the creation and management of ad campaigns. The service is available from a monthly advertising budget of 30,000 euros and costs advertisers an additional fee of 10 percent.

Amazon DSP Enterprise Self Service

If you want to act on your own initiative or work with a Amazon Agency can opt for the self-service model. However, the requirements for obtaining such an account are extensive. Among other things, an ad spend of several hundred thousand euros per year must be defined.

Targeting options with Amazon DSP

Advertisers are provided with several targeting options. A distinction is made between the following options:

  • Standard Display Ads (SDAs)
  • Video Ads (VAs)
  • Dynamic E-Commerce Ads (DEAs)

Standard Display Ads (SDAs)

We are talking about static images or animations that are adapted to your own design. The standard display ads can be displayed in numerous formats depending on their placement.

Video Ads (VAs)

Video ads are becoming increasingly popular and are in tune with the times. A distinction is made between in-stream video ads, which are shown in the form of a lead-in before other videos, and out-stream video ads, which appear separately. In-App Interstitial Video Ads, which are placed at intersections in apps, are controversial. They are often perceived as disruptive and thus evoke negative perceptions among customers.

Dynamic E-Commerce Ads (DEAs)

Dynamic E-Commerce Ads are characterized by automatic placement. The ASINs of the individual products and product groups are used as a guide. The ads adapt to the user's preferences and are based on analyses of Amazon audiences.

It's not easy to choose the right targeting option for your company. Trust our capable hands and let our expertise and know-how guide you.

Where are the ads placed?

The ads are displayed on different channels:

  • On Amazon
  • On websites, apps and mobile devices that belong to Amazon or are operated by the online retailer
  • Throughout the Internet

First Party Data - Amazon Audiences

Amazon DSP uses audience data to analyze the behavior of the target group. Customers who have shown interest in certain product groups without making a purchase are enticed to convert by means of advertisements. As soon as the acquisition is successful, the buyer is excluded from the ads and upselling begins: similar product groups are presented with the aim of initiating further sales.

The Amazon algorithm is designed to evolve continuously. Optimal ad types are determined for the respective advertising spaces and the behavior and thought patterns of customers are closely scrutinized. This enables advertisers to use Amazon DSP to influence the customer journey from start to finish and bring about interactions.

What is the difference between Amazon Advertising and Amazon DSP?

Amazon DSP takes classic Amazon advertising to the next level. As the advertisements can be published not only directly on the Amazon homepage, advertisers are able to advertise their products across the entire World Wide Web. However, the enormous reach is only one of many differences between Amazon Advertising and Amazon DSP:

Billing

Conventional advertising formats are billed according to the cost-per-click principle. With Amazon DSP, the costs are already incurred during playout. They are based on cost-per-mille billing.

Minimum budget

Amazon Sponsored Products and Sponsored Brands are generated, managed and monitored using the Self Service method. In contrast, Amazon DSP customers have the choice between Self Service and Managed Service. Here, however, Amazon requires a minimum budget in order to limit the high demand.

Access

Amazon DSP's advertising portfolio includes the platform itself, managed websites, apps and devices, and third-party publishers. The range of possibilities for DSP customers is endless. Amazon Advertising is limited to the company's own website.

Targeting

Amazon Advertising uses keywords, products and product groups to operate limited target group targeting. In contrast, Amazon DSP can be used to tap into unknown target groups and bring former customers back on board through retargeting.

Amazon DSP Strategy

The Amazon DSP strategy can be used to pursue different goals, which are more suitable for one company and less suitable for another. Tobias Dziuba's team will take a close look at your portfolio and can give you recommendations for an individual strategy.

Retargeting

Retargeting plays a major role in online marketing. Ads are sent directly to shoppers who have already expressed an intention to buy. Thanks to the targeted DSP ads, the retargeting audience receives a friendly nudge in the right direction and is motivated to complete a purchase. The conversions of these customers are 43 percent better and promise an immense increase in sales.

Brand awareness

Retargeting aims to make customers aware of your brand again. Apart from this, you should also address consumers who have not yet become familiar with your products and services. By actively promoting brand awareness, you increase your chances of conversions. After all, the number of customers in the lower part of the funnel increases when there are more consumers in the higher funnel. The focus on brand awareness is therefore a full funnel strategy.

Marketing Insights

The success of the marketing strategy is largely dependent on the amount of data available. After all, you can only understand the preferences and wishes of your target group if you have analyzed their behavior. With the insights of the Amazon Demand Side Platform, the principle of action - reaction can be put into practice.

Full-funnel strategy with the Amazon DSP

The sales funnel is usually depicted as a straight line. However, the reality is quite different. This is because the customer journey is only linear in the rarest of cases. Amazon DSP, however, is based on a full-funnel strategy that is individual, serves many channels and happens immediately.

Advantages of the full-funnel strategy with Amazon DSP

  • Acquisition of new target groups
  • Increased sales through retargeting, full-funnel approaches and brand awareness campaigns
  • Gaining loyal customers

What else does Amazon DSP offer?

The wheel of Amazon DSP never stands still, but keeps on turning. Accordingly, the platform is in a constant optimization process in order to be able to adapt to innovations and trends. Amazon DSP also offers the following features:

  • Audience pictures: Identification of potential target groups through the evaluation of streamed Prime content.
  • Video Creative Builder: Tool with a large portfolio of templates to create attractive advertisements.

Frequently asked questions about Amazon DSP

When are you authorized to use Amazon DSP?

Every company has the opportunity to use Amazon DSP. However, there are only a few places available for direct partners.

Who creates the ads?

The ads can be created individually or by Amazon.

What formats do display ads have in the Amazon DSP?

Numerous formats are available. For example, banners (468 x 60 pixels), half-page ads (300 x 600 pixels) or billboards (970 x 250 pixels).

How does the Amazon DSP algorithm work?

The algorithm uses real-time analyses to analyze the impact of the advertising space on offer.

How are the costs calculated?

A minimum budget of 10,000 euros per month is required to join Amazon's Managed Services. In addition, a fee of 15 percent and a platform fee of 10 percent must be paid.

The bottom line - Is Amazon DSP advertising worthwhile?

Numerous examples show that Amazon DSP is bearing fruit. For example, Jessica Alba's "The Honest Company" was able to increase the profitability of its advertising budget by almost two-fifths! The successful mix of retargeting, brand awareness and marketing insights is responsible for the resounding success of the Amazon Demand Side Platform. Thanks to the numerous advertising channels, millions of people can be reached in a fraction of a second and conversions can be generated. However, a comprehensive advertising budget is required to exploit the potential of Amazon DSP.

Have we whetted your appetite? Don't wait any longer, join us today as your Amazon PPC Agency to discuss your opportunities on the Amazon Demand Side Platform.

What is the Amazon DSP?

The abbreviation Amazon DSP stands for Amazon Demand Side Platform. It can be assigned to the world of programmatic advertising. This type of advertising is becoming increasingly important these days. They are characterized by dynamism and individual targeting and already dominate 80 percent of the European media buying sector.

How does the Amazon DSP work?

In the 21st century, the placement of programmatically controlled campaigns is undoubtedly the key to success. But how does dynamic advertising work? To realize programmatic advertising, a supply side platform - SSP - and a demand side platform - DSP - are always required. While the SSP is used to offer advertising space on your own homepage, the DSP is used to create a link between your own website and a large pool of buyers and sellers. Advertising space is therefore sold on the demand side platform.

Tobias Dziuba

My name is Tobias and I am the founder and managing director of the Amazon agency Adsmasters GmbH based in Düsseldorf.

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