Amazon DSP: The Complete Guide for Beginners

It's time to level up your Amazon advertising game. You've been selling on Amazon for a while now and things are going pretty well, but you know you could be getting way more sales if you just figured out how to master Amazon advertising. The problem is, all the different options seem so confusing. Sponsored products, Sponsored brands, DSP - what does it all mean?!

Don't worry, I've got you covered. In this complete guide for beginners, I'll walk you through everything you need to know about Amazon's Demand-Side Platform (DSP). You'll learn what it is, why it's different than Sponsored Ads, how to set up your first campaign, tips for optimizing for better results, and more. Whether you're just dipping your toes into Amazon ads or ready to dive in headfirst, this guide will give you the foundational knowledge you need to start crushing it with Amazon DSP. Sound good? Then let's get started!

What Is Amazon DSP?

Amazon DSP (Demand-Side Platform) is Amazon's advertising platform that allows advertisers and agencies to programmatically buy display, video and audio ads on and off Amazon. Think of it as a massive advertising exchange that helps match your ads to the right audiences across the web.

How It Works

The DSP uses Amazon's wealth of data to target audiences based on their shopping habits and interests. So if you're selling gardening supplies, you can show ads to people who frequently buy plants and tools on Amazon. The DSP also leverages data from websites and apps across the internet to find those same interested customers off Amazon.

Benefits for Advertisers

There are a few key benefits of using Amazon DSP:

•Reach highly targeted audiences. Amazon's data helps you reach specific groups like frequent travelers, sports fans or pet owners. You can target audiences at a granular level based on their interests and buying behaviors.

•Drive sales. By reaching people actively shopping for your product type, you can increase the chance of them clicking your ad and buying from you. Studies show shoppers who clicked an Amazon DSP ad were over 50% more likely to make a purchase.

•Scale your campaign. Amazon DSP gives you access to ad inventory from over 140 supply-side partners, including major web properties. So you can run large-scale campaigns to raise brand awareness or promote a new product launch.

•Optimize and improve. Amazon DSP uses machine learning to analyze how your ads are performing and automatically optimize your campaigns to improve results over time. It will allocate more of your budget to the best-performing ad placements and audiences.

•Measure effectiveness. You get access to metrics like impressions, clicks, cost per click and sales to see how your ads are influencing shoppers. Amazon DSP even provides estimated sales and return on ad spend metrics for campaigns running off Amazon.

With the growth of ecommerce and increasing competition, a platform like Amazon DSP can help ensure your ads reach the right shoppers at the right time. For brands selling on Amazon, it may just be one of the most effective tools in your advertising arsenal.

How Does Amazon DSP Work?

Amazon DSP, or Demand-Side Platform, allows advertisers to buy display ads programmatically. In other words, you can automate your ad buying across the web to reach your target audience. ###How does it actually work though?

Well, first you'll create an ad campaign to promote your product or service. You choose where you want your ads to appear, like on certain websites or mobile apps. Then you select your target audience by specifying things like their interests, browsing habits, and location.

Amazon DSP uses all this info to determine the best places across the web to display your ads so the right people see them. Their machine learning algorithms analyze huge amounts of data to find audiences that are most likely to engage with your ads.

Bidding and Budgeting

You also set a budget for your ad campaign and bids for the types of ad placements you want. Amazon DSP's auction-based system evaluates all the bids from advertisers and determines the winners for the best ad spots. Your ads are then displayed on websites, apps, and other digital media that are relevant for your target audience.

Reporting and Optimization

The cool thing is Amazon DSP provides reporting to show how your ads are performing. You can see metrics like impressions, clicks, and conversions. Then you can use those insights to optimize your campaigns to improve results. You might adjust your budget, bids, target audience, or creative to boost performance over time.

Amazon DSP makes programmatic advertising accessible for companies of all sizes. With their advanced targeting and optimization capabilities, you can reach just the right customers for your brand at the right price. Pretty powerful stuff!

Benefits of Using Amazon DSP

Using Amazon’s Demand-Side Platform (DSP) to buy advertising inventory and manage your ad campaigns comes with many advantages. As an advertiser, you’ll gain valuable insights and tools to reach your target audiences more effectively.

Access to Amazon Audiences

Amazon DSP provides access to Amazon’s wealth of data on shopping behaviors, browsing habits and more for over 300 million active customer accounts. You can leverage this data to build customized audiences and reach shoppers who are most likely to be interested in your products. Whether you want to target competitive shoppers, loyal customers or potential new buyers, the depth of Amazon’s customer data will help you make the right connections.

Real-Time Bidding

With Amazon DSP, you can bid on ad impressions in real time based on your campaign goals and budget. This means your ads are shown at the optimal price to the right audiences. You can adjust bids dynamically based on performance to get the most from your budget. The real-time feedback allows you to make tweaks to improve results over the lifetime of your campaign.

Cross-Device Campaign Management

People access Amazon from multiple devices, so your ad campaigns need to work across devices to be truly effective. Amazon DSP makes it easy to manage campaigns that target users across mobile devices, desktops, tablets, and more. You can optimize bids based on performance on specific devices or synchronize ads to provide a consistent experience for customers.

Measurement and Reporting

Robust reporting and measurement tools provide insights into how your campaigns and ads are performing. You'll get metrics like impressions, clicks, spend, and return on ad spend to optimize for the best results. See how audiences and creatives impact performance so you can make data-driven decisions about your advertising.

Using Amazon DSP, you get access to the powerful combination of Amazon's customer data, advertising tools and premium ad inventory. For brands looking to boost product visibility and drive sales, Amazon's DSP is an essential tool for effective advertising on Amazon.

Watch the below video to know about Amazon DSP : Step-by-Step Guide to Drive Revenue and ROI Like a Pro

Getting Started With Amazon DSP

To get started with Amazon DSP, you'll need to sign up for an account and be approved. The approval process typically takes 1-2 business days. Once approved, you'll gain access to the DSP platform where you can start setting up your first campaign.

Creating Your First Campaign

When you log in to your Amazon DSP account, you'll see the Campaign Manager page. This is where you create, edit, pause, and delete your campaigns. To make your first campaign, click "Create campaign" and select "Sponsored Products Campaign". Name your campaign something memorable and choose a daily budget you're comfortable with to get started, like $50-$100 per day.

Choosing Your Targeting Options

Next, you'll set up targeting to determine which shoppers will see your ads. You can target by interests, browsing and purchase history, device types, and more. Think about your product and ideal customers. Do you want to target gardening enthusiasts or pet owners? Maybe target previous purchasers of related products. You can also choose to target broad audiences to start and then optimize as you go.

Bidding and Ad Types

With Amazon DSP, you bid on an impression basis, meaning you bid what you're willing to pay each time your ad is shown. For your first campaign, start with the suggested bid range and you can optimize from there based on your results and budget. You'll also choose between standard image ads or custom video ads. Image ads are a great place to start. You'll upload eye-catching product images and compelling ad copy to capture shoppers' attention.

Monitoring and Optimizing

Once your campaign is live, monitor its performance daily and make changes to improve results. Check impressions, clicks, cost per click, and sales. Look for opportunities to refine your targeting, increase your bids, or improve your ads. Make one change at a time and give it a few days to see the impact. Over time, you'll get better at crafting campaigns that drive high performance.

With some practice, you'll be optimizing campaigns and driving sales on Amazon DSP in no time. Start with a small budget, learn the capabilities, and scale up as you get comfortable. Happy optimizing!

What Kind of Ads Work with Amazon DSP?

Amazon DSP supports a wide range of ad formats to help you reach customers on Amazon. The most common are:

Product Display Ads

Product Display Ads feature one of your products along with a custom headline and call-to-action like “Buy now.” They appear on Amazon and throughout the Amazon Publisher Network which includes sites like IMDb, Goodreads, and more. You can use these ads to promote sales and introduce new products to a wide audience.

Video Ads

Video Ads on Amazon DSP allow you to run commercials and video promotions on Fire TV streaming media players and compatible TVs. You can target viewers based on things like age, gender, and viewing habits. Video ads are an engaging way to build brand awareness and drive traffic to your product listings or brand store.

With Amazon DSP, you have access to innovative ad products that can help propel your business forward. By testing different ad types and creatives, you can find the right mix to achieve your marketing goals and reach customers at every stage of their journey. The key is to start with a few ad types and expand from there based on your performance and needs.

Frequently Asked Questions About Amazon DSP

What is Amazon DSP?

Amazon DSP or Demand-Side Platform is Amazon's advertising platform that allows brands and agencies to programmatically buy display, video, and audio ads on Amazon. It gives you access to Amazon's audiences and the ability to reach shoppers on Amazon with your ads.

How does Amazon DSP work?

With Amazon DSP, you can use automation and data to optimize your ad campaigns on Amazon. You set a budget, choose your audiences, select the types of ads you want to run, and Amazon DSP will deliver your ads to the right shoppers at the right times. It uses Amazon's shopper data and machine learning to optimize your campaigns for the best performance and returns on your ad spend.

What ad formats does Amazon DSP offer?

Amazon DSP offers display ads, video ads, and audio ads:

Display ads: Static images or rich media ads shown on product detail pages and Amazon apps/sites.
Video ads: 15 or 30-second video ads shown before, during or after streaming content on Amazon Fire TV and Twitch.
Audio ads: 15 or 30-second audio ads played on Amazon Music, Audible and Twitch streams.

How do I get started with Amazon DSP?

To use Amazon DSP, you'll need an Amazon DSP account. You can sign up for a free Amazon DSP trial to test it out. Once your account is set up, here are the basic steps to get started:

Choose your ad types (display, video, audio) and set a budget.
Select your audiences by location, interests, behaviors or Amazon audiences.
Design your ads and upload them to your Amazon DSP account.
Set a bidding strategy to determine how much you'll bid for your audiences.
Launch your campaign and Amazon DSP will start delivering your ads.
Optimize and refine your campaigns based on performance. Make changes to audiences, bids, and creatives to improve results.

Amazon DSP can take a bit of time to learn, but Amazon provides resources and support to help you succeed with your ad campaigns. With some optimization, you'll be reaching Amazon shoppers and driving sales in no time!

Conclusion

And there you have it - a complete guide to getting started with Amazon DSP and leveraging it to drive more sales on Amazon. By now, you should have a good understanding of what DSP is, how it works, the pros and cons, and tips for optimizing your campaigns. The key is taking the time to set up your campaigns thoughtfully, regularly monitor and optimize performance, and leverage all the data and insights available to make informed decisions. With the massive scale and reach of Amazon's ad inventory, DSP represents a huge opportunity for brands looking to connect with buyers during the critical moment when they're ready to purchase on Amazon. Approach it strategically and Amazon DSP can become an invaluable part of your marketing mix.

Search This Blog

Sellers guide Blog