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Amazon DSP · 7 pages · 6 min read

Amazon DSP: Your Brand in New Places

Reach new audiences on and off Amazon

A working introduction to Amazon DSP: what programmatic buying actually is, every targeting option available, the ad formats, and what a full funnel activation did for one brand's paid and organic sales.

Artwork from the cover of Amazon DSP: Your Brand in New Places
Part 1 of 10

What is Amazon DSP?

Amazon DSP is a demand-side platform that allows advertisers to programmatically buy ads. Using Amazon DSP gives brands a massive advantage in that they can create a more fine-grained audience that they can target with DSP, which ultimately allows brands to reach their target audience easier and in the end drive more conversions.

Due to Amazon having so much first-party data on customers, Amazon DSP is a wonderful tool for brands to reach new and existing audiences, on and off Amazon.

Part 2 of 10

What is Programmatic Advertising and What are the Benefits?

Digital ads are bought and sold using advertising technology, or programmatic advertising. Programmatic advertising purchases digital ad inventory on the web, mobile, applications, video, and social media through an automated process that operates within advertiser-defined limits.

Utilising machine learning algorithms and process automation, programmatic advertising targets viewers with the most relevant adverts based on a range of signals, such as purchasing habits. There are several advantages to programmatic advertising such as more efficiency, more focused marketing reach, transparency, and real-time measurement and optimisation.

Part 3 of 10

Who Can Use Amazon DSP?

Amazon DSP is available to both advertisers who sell products on Amazon and those who do not. Self-service and managed-service options are available. Self-service customers are in full control of their campaigns. To self serve, you need to have a DSP seat, which Toucan hold in NAM, EU and APAC.

The managed-service option is for companies that want access to Amazon DSP inventory, with consultative service, or for those with limited programmatic advertising experience.

Part 4 of 10

DSP Targeting Options

Behavioural targeting: target customers further down the funnel by setting any number of triggers.

Lifestyle targeting: ads that are relevant to individuals who often purchase from a specific category are shown to them via lifestyle targeting.

Device targeting: advertise to consumers who use particular end-user devices, such as tablets like the Amazon Fire, Android or Apple phones, desktop users, or users of other operating systems.

Demographic targeting: you can use your ads to target based on gender, age, income, or location.

Contextual targeting: serve ads to users based on what they are browsing right now. Contextual targeting is a great option to encourage impulse buys and drive conversions quickly.

Remarketing targeting: for consumers who have searched for, viewed, or purchased your or similar products.

In-market targeting: audiences who are "in-market" are those who have high intent with a greater likelihood of purchasing your product or services.

Advertiser audiences: Amazon DSP allows you to leverage third-party data. With pixels, CRM data, and/or DMP audience transfers, you can reach customers who have previously engaged with your brand from assets such as email lists or visited your website.

Part 5 of 10

Is Amazon DSP for You?

There are a lot of possibilities when it comes to advertising with Amazon DSP, but results depend on each brand's advertising strategy, and how they can execute it.

Most brands will want to take advantage of DSP due to being able to use Amazon's audience and expand their reach due to the large amount of data that is available.

When a brand first starts selling on Amazon, they could potentially face some competition so they will need to determine how they can quickly build awareness and attract new-to-brand customers. DSP is a great tool for achieving this. Once a brand is retail-ready, potential customers will see the brand both on and off Amazon, which will in turn lead to increased conversions.

If your brand holds a commanding share of voice within its designated category, leveraging mid and upper-funnel tactics can further fuel growth by attracting fresh customers to your niche.

The full funnel, stage by stage

Funnel stage Formats The job it does
Build awareness Streaming TV, audio ads, DSP video and display Expanding reach
Consideration DSP video and display, Sponsored Display, Sponsored Display video Building your brand
Owning your aisle Sponsored Brands, Sponsored Brands video, Sponsored Products Standing out in your category
Purchase Sponsored Products, Sponsored Brands, Sponsored Display Reaching shoppers most likely to purchase
Loyalty DSP display, Sponsored Display Retaining the customer base, repeat purchase, Subscribe and Save
Retail readiness Optimised product detail pages and Stores Making sure your products are ready to buy
Part 6 of 10

What are the DSP Ad Types?

Dynamic e-commerce: dynamic e-commerce ads will automatically select the most suitable creatives depending on the campaign goals that you select for your ad.

Static advertisements: this is the most common type of Amazon DSP ad, and requires a call to action. Amazon serves these ads across desktop apps, browsers, mobile apps, and Amazon Kindle.

Video advertisements: Amazon DSP video ads help advertisers to convey their brand message and values with autoplay videos across the Amazon marketplace and related platforms.

OTT advertisements: over-the-top ads reach audiences on connected TV devices (Amazon Fire TV Stick, for example). Advertisers can serve 5+ second video prerolls before users can access the content.

Part 7 of 10

The Impact of Full Funnel DSP Activation

Week 1 Week 2 Week 3 Week 4
Paid sales growth YoY 22% 30% 38% 31%
Organic sales growth YoY 5% 7% 9% 10%
Impressions (MM) 8 12 13 16.2

Implementing a full funnel activation drove strong year-on-year organic and paid sales growth, along with driving 49.2MM impressions.

Part 8 of 10

Integrating AMC with DSP

Integrating AMC with DSP streamlines a brand's workflow. The synergy between AMC and DSP is particularly impactful for several reasons:

Expanded reach: DSP provides access to a vast and engaged audience on the platform. By combining with AMC, brands can extend their reach across diverse channels like Amazon, social media, and search, effectively reaching their target audience.

Enhanced measurement: AMC offers robust capabilities for measuring campaign effectiveness across various channels, providing advertisers with comprehensive insights.

For brands seeking to amplify their customer outreach, both DSP and AMC stand out as invaluable assets. DSP offers brands access to diverse platforms and audience segments. Meanwhile, AMC offers profound insights into the customer journey, enabling brands to enhance precision and make informed, data-driven choices.

Part 9 of 10

Sponsored Ads and DSP Go Hand-in-Hand

  • Ensure your Sponsored Ads are fully optimised and you're starting to maximise your opportunity there.
  • DSP feeds the funnel, pulling new users into the mix and increasing the pool of audiences who are brand aware.
  • Sponsored Ads activity should be sufficient to accommodate the increase in search traffic that is likely to occur.
  • Both methods complement each other, and DSP can help strengthen a brand's opportunity on and off Amazon.
Part 10 of 10

Summary and Final Thoughts

Amazon DSP is an extremely powerful platform to reach Amazon's massive customer base using programmatic advertising. Due to its advanced targeting options and access to first-party data based on consumers' specific shopping behaviours, advertisers can create extremely targeted ad campaigns that drive brand awareness and consideration.

DSP and Sponsored Ads should be used in parallel to yield better sales uplifts, so it's essential for brands who can take advantage of DSP to utilise it to drive reach and awareness, whether that's through display or video campaigns.

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