6 Noteworthy Benefits of DSP to Your Amazon Business

Amazon DSP, or Demand-Side Platform, unlocks powerful advertising capabilities beyond Amazon‘s walls. Here are six key benefits DSP provides:

• Precision Audience Targeting
• Full-Funnel Campaign Strategies
• Robust Analytics for Optimization
• Streamlined Efficient Workflow
• Automated Bidding Strategies
• Consolidated Media Inventory

In this comprehensive guide, we will explore these benefits in-depth and how they can help you grow your ecommerce business.

A Primer: What is Amazon DSP?

Amazon DSP is a demand-side platform that enables advertisers to programmatically purchase display, video and audio ad placements both on Amazon properties and on third-party websites, apps and more.

With DSP, you gain access to robust tools for targeting specific audiences and optimizing campaigns across multiple exchanges and data sources through one centralized platform.

DSP Advertising Formats

DSP supports a wide variety of ad formats beyond just simple display ads. These interactive and immersive options help grab attention and drive engagement.

Display Ads

• Static image banners
• Dynamic product ads
• Remarketing ads
• Similar product recommendations

With product remarketing, you can target users who have already shown interest in your products or similar products:

• Viewed Product Retargeting: Target shoppers who viewed but didn‘t purchase a product.

• Purchase Retargeting: Engage customers who already purchased from you with new offers.

• Competitor Retargeting: Target audiences who have viewed or purchased competing products.

Video Ads

• Pre-roll, mid-roll and post-roll video ads
• Interactive video ads
• 360-degree video

Audio Ads

• Streaming music and podcasts
• Radio ads
• Voice apps and assistants

6 Benefits of Using Amazon DSP

Now let‘s explore the key advantages of using Amazon DSP for your ecommerce advertising:

1. Precise Audience Targeting

One major benefit of DSP is the ability to define and target very specific user segments. Using data and parameters like:

• Demographics
• Location
• Purchase history
• Browsing behavior
• Device usage
• and more

You can hone in on the audiences most likely to engage with your brand and offer the right message at the right time.

In fact, over 75% of DSP advertisers consider enhanced audience targeting capabilities as the biggest benefit (eMarketer).

2. Full-Funnel Campaign Strategies

DSP makes it possible to engage users throughout the entire sales funnel, from first discovery to final conversion. You can:

• Build awareness with prospects through video and display ads.

• Educate those considering with relevant content.

• Convert those ready to buy with customized product offerings.

With DSP, the same audience can be nurtured across multiple stages in their journey with your brand.

3. Data-Driven Optimization

Robust analytics and reporting provide the insights you need to continuously optimize your DSP campaigns. You can identify high performing placements, creatives, audiences and strategies to allocate more budget towards what works.

Monitor key metrics like click-through rate (CTR), conversions, cost per acquisition (CPA) and return on ad spend (ROAS) to improve performance.

4. Streamlined Efficient Workflow

DSP advertising simplifies media buying through real-time bidding and consolidated campaign management. You can easily run and optimize campaigns across multiple platforms and inventory sources through one interface.

The streamlined workflow includes:

• Real-time ad auction bidding
• Centralized budgeting
• Consolidated performance data
• Automated optimization

This efficiency lets you spend less time managing campaigns and more time growing your business.

5. Automated Bidding Strategies

With DSP, you don‘t need to manually adjust bids to balance performance and cost. The system leverages algorithms to automatically bid in real-time based on your goals, budgets and real-world conditions like seasonality and competition.

Factors like ad positioning, inventory availability, demand and user engagement are analyzed continuously to determine ideal bids. This automation maximizes both ad placements and return on your ad spend.

6. Consolidated Media Inventory

Buying directly from various publishers, ad exchanges and networks can be complex and time-consuming. DSPs simplify the process by consolidating inventory in one place.

With Amazon DSP, you get access to display, video and audio ad inventory virtually everywhere your audiences are engaged:

• Popular websites and apps
• Amazon owned properties including IMDb and Twitch
• Streaming audio on Pandora, Spotify and more
• Over 1 million podcasts and audio books
• Connected TV platforms like Hulu and Roku

This makes scaling your reach and impact much easier than working with disparate channels individually.

DSP vs. Amazon PPC Advertising

It‘s common for sellers to be familiar with Amazon PPC ads, so how does Amazon DSP differ?

In summary:

• Amazon PPC is ideal for direct-response sales on Amazon sites
• Amazon DSP complements this by expanding reach to find new audiences

Tips for Getting Started with Amazon DSP

Follow these tips when exploring how DSP could benefit your ecommerce advertising:

• Consult with an Amazon advertising expert to map DSP to your goals
• Start small to test placements, creatives and audiences
• Enable robust analytics and reporting from the start
• Build detailed audience profiles for precision
• Let the system automatically optimize bids and placements
• Sync your product catalog for dynamic ad creation
• Review performance trends and optimize accordingly
• Combine DSP with Amazon PPC for multi-channel approach

The Takeaway

With benefits like hyper-targeting capabilities, consolidated inventory, and robust optimization, Amazon DSP is a valuable addition for ecommerce brands looking to expand their reach and acquisition channels.

DSP brings your advertising to where your audiences are already browsing and engaging. And with streamlined workflows and automation, you can achieve greater performance scalability.

By leveraging both DSP and Amazon PPC, savvy sellers can execute strategies that cover both direct response on Amazon and broader brand awareness beyond it.