What is Amazon DSP Program? A Complete 2024 Guide for Amazon DSP Advertising
With Amazon solidifying its role as a key player alongside Google and Facebook in advertising, it becomes increasingly critical for brands, whether on Amazon’s marketplace or beyond, to adopt the Amazon Demand-Side Platform. Think of it as your secret advertising weapon, able to reach shoppers wherever they are, on any device, whether they’re browsing on Amazon or exploring other corners of the web.
You’ve heard it right: unlike other Amazon advertising tools that only allow you to drive traffic internally, Amazon’s Demand Side Platform allows to place ads on external platforms, therefore giving you access to an even larger customer base.
If you want to learn what does Amazon DSP stands for and how you can utilize its functions to your advantage, look no further: in this guide, we’ll cover everything you need to know about Amazon DSP program, including its requirements, costs, and the available ads it offers to sellers.
What Is Amazon DSP?
First of all, let’s separate the two acronyms Amazon uses for its services: Amazon Demand Side Platform and Amazon Delivery Service Partner Program. They both share the “DSP” abbreviation, which can be confusing to some users. But it is what it is, and in this post we’ll be talking specifically about Amazon’s Demand Side Platform.
Now that we have the confusion out of the way, what does Amazon DSP mean?
Amazon’s demand-side platform (DSP) empowers advertisers to purchase video, audio and display ads on a large scale, whether on Amazon or elsewhere, through programmatic ad buying. Typically, advertisers upload their creative content, set targeting criteria to reach the right audience, and allocate a budget for their campaign.
Programmatic Advertising
Through the use of software, programmatic advertising automates the entire ad buying and selling process, setting it apart from traditional media buying methods.
By analyzing numerous user signals (like interests, behavior, demographics, etc.), it ensures ads reach the right audience, at the right place and time. Essentially, this technology automates the decision-making for ad placement, bypassing the need for manual price or placement discussions. This guarantees that your ads are not merely scattered across the internet, but are strategically located to maximize their effect.
Though there are various ad payment methods, Amazon DSP mainly uses CPM. This stands for cost per 1,000 ad impressions, or the number of times someone sees your ad. This pricing method is primarily used by advertisers who want to increase brand awareness or spread a message, focusing more on exposure than clicks (in contrast to CPC model).
What Is the Difference Between Sponsored Ads and Amazon DSP?
The world of Sponsored Ads includes Sponsored Products, Sponsored Brands, and Sponsored Display ads, each focusing on different aspects of the advertising funnel. These ads are mostly visible on Amazon, reaching consumers as they are considering a purchase.
In contrast, Amazon DSP advertising offers advertising solutions both on and off Amazon, with options for self-service and managed-service. Interestingly, Amazon DSP is also available to non-Amazon sellers, enabling them to reach Amazon’s customer base if they avoid promoting directly competing products.
It’s worth noting that Sponsored Display Ads can also be used off Amazon, but DSP offers more advanced creative possibilities, such as audio and video options.
Amazon DSP Cost & DSP Models
There are two main approaches to using Amazon’s DSP:
1. Managed Service
Opting for Managed Service means paying a fee to access Amazon’s complete set of programmatic campaign management tools. These services are offered on an insertion order (IO) basis, providing expert guidance and management of your advertising campaigns.
The managed-service offering usually demands a starting expenditure of $50,000. However, this minimum amount is subject to change across different countries, market niches, etc. If you’re interested in learning the exact sum it would cost you, visit this official Amazon page and input information specific to your business.
2. Self Service
Available solely to Amazon Agency Partners, this feature offers brands a higher level of campaign control. Working alongside an Amazon Ads Partner allows advertisers to avoid the typical minimum spending requirement, allowing for a more flexible financial approach.
This article mainly covers Self Service ads. After all, you wouldn’t be here to learn more about how to use Amazon Demand Side platform if you could just leave the intricacies of setting up the campaign to professionals.
Amazon DSP Targeting Options
In the process of campaign setup, advertisers can build custom audience segments that align with their products and categories, providing a highly relevant experience for users. Amazon DSP enables you to target shoppers through:
Targeting Type | Description |
Behavioral Targeting | This method analyzes recent actions taken by users on various platforms. For example, if a customer added a hiking backpack to their cart, you can target them with ads for camping gear. |
Lifestyle Targeting | Focuses on users’ lifestyle choices and habits. For instance, if you sell eco-friendly products, you can target users who frequently purchase sustainable and green products. |
Interest-Based Targeting | Targets users based on their interests in specific topics. For example, if someone regularly engages with content about home gardening, you can advertise your range of gardening tools and seeds to them. |
Life Event Targeting | Reaches users undergoing significant life changes |
Demographic Targeting | Utilizes demographic information such as age, gender, income, and location. |
In-Market Targeting | Identifies users actively researching or comparing products similar to yours. For instance, if someone is looking at different smartphone models, you can show them ads for your latest smartphone release. |
Contextual Targeting | Places ads on websites and apps that are contextually relevant to the product you’re selling. |
Remarketing/Retargeting | Allows to re-engage users who have previously interacted with your product (searched for, viewed or purchased). |
Audience Lookalike Targeting | Target people with attributes that mirror those of your current DSP audience. This allows you to broaden your reach, attracting a wider pool of potential customers who may be interested in your offerings. |
Amazon DSP Ad Types
Currently, there are four advertising options Amazon DSP has to offer: audio, display, video and STV (Streaming TV) ads.
Audio Ads
Amazon audio ads offer brands a unique opportunity to connect with audiences during their listening experiences. These ads are integrated into premium audio content across various platforms, including Amazon Music’s ad-supported tier and third-party services via Amazon Publisher Services. They cater to a wide range of devices such as desktops, mobiles, tablets, connected TVs, and smart speakers like Amazon Echo, Alexa-enabled devices, and Fire TV.
1. Standard Audio Ads
These ads are designed to be concise and impactful, lasting between 10 to 30 seconds. They are accompanied by a visual banner image that appears on devices with screens. This banner is interactive and can be clicked on desktops, mobiles, and tablets, enhancing the ad’s reach and engagement potential.
2. Interactive Audio Ads
These audio ads are available on Amazon Music’s (ad-supported tier) and include Alexa call-to-action audio ads which customers can interact with. When users hear an ad on an Alexa-enabled device and wants to interact, they can use their voice to add items to their shopping cart, set reminders, or get more details sent via email or notifications.
Display Ads
1. Responsive eCommerce creative (REC)
Responsive eCommerce creatives (REC) are designed to feature specific products available on Amazon, linking directly to their product detail pages. Each REC can include ads for up to 20 different ASINs and can be displayed across all five Amazon DSP inventory sources. You can also set a creative-level optimization goal, allowing the Amazon DSP to focus on the best-performing ASINs for improved results.
2. Custom image creative (Custom Image)
Custom image ads feature unique design elements tailored to a brand, using specific layouts and text instead of the standard product images. These ads can link directly to product detail pages, brand stores or custom landing pages.
This ad format is perfect for advertisers aiming to create a brand-focused experience, as it allows for the use of personalized brand messaging, imagery, and fonts.
Online Video (OLV) Ads
Online Video (OLV) ads are versatile, appearing both within video streams—either before, during, or after the content—and outside of video contexts, such as between text and images. They can be found on Amazon-associated sites like IMDb.com and Twitch, as well as leading third-party publishers.
Based on one of the Amazon’s research studies, here’s a list of recommendations you should follow when creating a video app, and how sticking to them can improve your metrics.
Depending on your end goals, the same recommendation will have different impact on your DPRV:
1. Raise Brand Recognition
Parameter | Recommendation | Impact on DPRV (Detail page view rate) |
Video Length | Specialists recommend aiming for a video length of 24 to 29 seconds to maximize viewer engagement and detail page view rate (DPVR). This duration is ideal for conveying key information without overwhelming the audience. | 181% higher DPVR for videos between 24 and 29 seconds long |
Speech | Incorporating speech from the start ensures immediate engagement. Experts advise that you should begin with a speech from the very beginning, and keep it until half of the video to draw viewers into the ad’s message. | 37% increase in DPVR |
Number of Speakers | Utilizing a duo of speakers in your OLV ads can create a more engaging experience, providing varied perspectives and maintaining interest. However, having more than two speakers can lead to a decreased average DPVR by up to 45%. | 10% increase in DPVR |
2. Boost Sales
Parameter | Recommendation | Impact on PR (Purchase rate) |
Video Length | For post-roll (PR) effectiveness, specialists suggest crafting concise 10-second videos. This length is optimal for retaining viewer attention and delivering a focused message, making it particularly effective for conversions and immediate call-to-action. | 51% higher average PR |
Speech | When using speech, cover 60% to 90% of the video duration for the highest PR performance. | 24% higher average PR |
Number of Speakers | Incorporating multiple speakers (ideally two or three) can add depth to the ad, increasing its relatability and appeal. | 26% increase in average PR |
Streaming TV (STV) Ads
These are non-skippable video ads take over the screen before, during, or after video programs including TV series, films, and live events on connected TV, mobile, and desktop. These ads can be found on Prime Video, Amazon Freevee, Twitch, live sports, Fire TV Channels, and top third-party broadcasters.
Advantages of Amazon DSP
1. Access to Wider Customer Base
Amazon DSP empowers advertisers by providing expansive access to ad inventory not only on Amazon’s own platforms like Fire TV, Audible, and Twitch but also across other popular sites and apps. This means your campaigns can seamlessly reach millions of potential customers wherever they spend their time online.
What truly sets Amazon DSP apart is its use of exclusive first-party data, enabling precise targeting of consumers actively searching for or interested in specific products.
2. Audience Insights
Audience insights allow advertisers to access detailed data on customer behaviors, specifically viewing and purchasing patterns. For instance, advertisers can determine how long it takes for a customer to purchase after visiting a product page.
This data can also be segmented by demographic factors (e.g., age, gender, income) and by time-related variables (e.g., time of day, day of week, year). Insights into purchase frequency, such as the rate of repeat purchases, the number of repeat transactions, and the intervals between them, are also available.
3. Access to Detailed Metrics Report
The Amazon DSP offers advertisers metrics to evaluate their performance at each phase of the customer purchase journey. These metrics include:
- Impressions.
- Detail Page View Rate.
- Add to Cart.
- Units Sold – The total count of products sold due to the ad campaign.
- Attributed Sales.
- Purchase Rate.
- ROAS (Return on Ad Spend).
- Subscribe & Save Subscribers.
- Subscribe & Save Rate (SnSSR).
- CTR (Click-through Rate).
- Video Completion Rate.
- Cost per Metrics.
4. Improved Budget Management
Programmatic advertising offers flexible spending options, making it ideal for businesses of any size. This flexibility allows advertisers to control their campaign budgets, minimizing the risk of overspending beyond their capacity or intentions.
When you begin a programmatic campaign, you can set a maximum budget upfront and rest assured that your ads will run without exceeding the amount you’re willing or able to spend.
Final Thoughts
Amazon DSP emerges as a powerful tool for advertisers looking to expand their reach beyond Amazon’s marketplace.
Keep in mind, you can leverage the advertising capabilities of Amazon DSP even if you’re not selling on Amazon, nor do you have to be an ads expert: let programmatic advertising handle the heavy work, leaving you to simply set the right direction.
Services you Could be Interested In
Table Of Glossary
FAQ
There are 2 types currently:
Self-serve DSPs give advertisers the freedom to manage their campaigns, tailored for those who desire autonomy in media buying.
Full-service DSPs complement this with robust support and management, perfect for advertisers who prefer to rely on professional expertise for their media strategies.
Managed Service: This requires a minimum spend of $50,000 USD to access Amazon's campaign management tools, though this amount varies by region and market. Check Amazon's official page for specific costs tailored to your business.
Self Service: Exclusive to Amazon Agency Partners, this allows brands to avoid the minimum spend requirement by working with an Amazon Ads Partner. The cost can vary depending on the agency and its specific requirements, providing greater financial flexibility.
