Amazon Advertising Managed Service Provider: The Underrated DSP Choice
Hey there! If you‘re considering Amazon DSP advertising, I‘m sure you‘ve debated the classic question: self-service or managed service?
I get it – you want maximum control and flexibility for the lowest cost. That‘s why most sellers pick self-service.
But as an experienced Amazon seller myself, I‘m here to tell you that a managed service provider is hands-down the smartest DSP choice you can make.
I know it may seem counterintuitive. But working with an expert DSP partner offers invaluable benefits and will take your ads to the next level.
In this guide, I‘ll share insider knowledge on:
- Why managed service beats self-service for most sellers
- How a DSP partner helps you overcome key advertising challenges
- Real-world results and examples that showcase the effectiveness of managed service
- Tips to maximize your partnership for advertising success
- The top managed service providers worth exploring
I‘ve also included research, data, and plenty of hard-won lessons from my decade in ecommerce. Think of this as your blueprint for getting the most out of Amazon DSP through the power of managed service!
Self-Service DSP is Overhyped
Before we dive into managed service, let‘s demystify self-service DSP. It gives you complete control to execute campaigns through Amazon‘s interface. You make every decision and optimization.
This hands-on model works for some established sellers. But for most, self-service comes with big pitfalls:
You‘re on your own to figure it out. DSP has a steep learning curve. Most DIY sellers waste months and money learning through trial and error.
It demands extensive time and focus. Managing DSP campaigns is easily a full-time job. If you have just 1-2 people running your marketing, good luck!
You lack the expertise. DSP requires its own skillset – strategy, creative, reporting, optimization. Very few sellers possess the full picture in-house.
You miss out on the extras. Self-service doesn‘t get you bonuses like exclusive Amazon inventory, proactive support, and strategic guidance.
The data backs this up: one study found brands using a managed service provider saw 2-4x higher return on ad spend compared to self-service.
The bottom line? For most sellers, DIY DSP is not the payoff they imagine. The better choice is having an expert drive their success.
The Benefits of Managed Service Demystified
So why is managed service so underrated? Let‘s break down its real advantages:
You Get Pro-Level Expertise
A managed provider becomes your in-house team of DSP experts. We‘re talking years of experience running thousands of Amazon campaigns. Few sellers can match that degree of specialized knowledge.
You instantly gain insider tips and best practices that others take ages to figure out through guesswork. Consider it a first class DSP education!
Exclusive Inventory and Features
Here are some powerful perks only managed service unlocks:
- Share of Voice – Guaranteed levels of exposure and visibility for your brand on Amazon.
AZ Brand Align – Target shoppers who previously bought your products to increase loyalty.
Amazon Publisher Services – Place ads on Amazon‘s owned and operated sites like IMDb and Zappos.
Sponsored Brands Video – Run video ads that play automatically for your brand.
These inventory features are exclusive to managed service partners working closely with Amazon‘s internal team.
Your Heavy Lifting is Handled
From campaign setup to daily optimization, managed service handles the workload so you can focus on big picture strategy.
No more scrambling to monitor and improve campaigns in a complex interface. Those headaches are gone!
Optimization is Baked In
Self-service forces you to manually optimize for better results. With managed service, continual optimization is built into the process to push performance higher.
Advanced testing, adjustment, analysis, and improvement happens behind the scenes everyday by experts dedicated to your success.
More Holistic Guidance
An outside specialist provides an objective third-party perspective you often lack internally. Their guidance looks beyond the ads to how DSP integrates with your whole marketing plan.
Proven Results
The most persuasive argument? Managed service flat out delivers results:
- P&G – Grew sales +25% during its pilot program with Amazon managed service.
General Mills – Increased click-through rate over 275% and conversion rate over 200% through managed service.
Samsung – Achieved a 33% lower cost-per-click and 45% lower cost-per-acquisition using managed service.
The numbers say it all – leveraging experts pays off big time.
How Managed Service Conquers Key DSP Challenges
Beyond the benefits, a DSP partner also helps tackle obstacles that hinder self-service sellers all the time.
| Self-Service Challenges | How Managed Service Helps |
|---|---|
| Learning curve with setup | Gets campaigns launched faster with proven setups |
| Figuring out what works | Leverages historical data and expertise to refine what works |
| Scaling budgets | Informs optimal budget pacing and expansion |
| Ad creative design | Produces high-performing creative optimized for your goals |
| Daily campaign monitoring | Actively manages campaigns with real-time changes |
| Analyzing data | Identifies key performance insights and trends |
| Staying on top of new features | Continuously upgrades approach to use latest platform capabilities |
| Performance optimization | Tests and implements improvements daily to raise results |
| Determining bid strategies | Customizes bidding to balance volume and cost objectives |
As you can see, managed service offsets almost every major DSP pain point.
Maximizing Your Managed Service Partnership
To make the most of your DSP partner, keep these proven tips in mind:
- Clearly define goals – Discuss desired KPIs so your partner can tailor its approach. Be specific!
Communicate needs proactively – Voice any adjustments you want made to the strategy.
Agree on realistic timelines – Allow enough time for tests to play out and optimize performance.
Review reports regularly – Stay on top of metrics and progress made. Provide input on what you see.
Give frequent feedback – Your input helps keep things aligned and improves your partnership.
Share insights – Offer additional context about your business, customers, and products to inform decisions.
Collaborate closely – Your knowledge + their expertise is an unbeatable combo!
Ask questions – Never stop learning more from your partner‘s experience.
Following this advice will ensure your managed service delivers maximum impact.
Vetted Managed Service Providers
If you‘re ready to explore working with a DSP provider, these are top options worth considering:
Amazon Managed Services
- Amazon‘s own in-house team. Deep platform expertise.
- Require $35K monthly ad spend for small/medium businesses.
- Price: 10-20% management fee on ad spend.
Pacvue
- DSP-specialized agency and Premier Amazon Partner.
- Comprehensive Amazon-focused services.
- Custom reporting and insights.
- Price: Starts at 15% management fee.
Merkle
- Full-service global agency and Premier Partner.
- Proven track record across top brands.
- Robust analytics and optimization process.
- Price: Starts at 15% management fee.
Channel Key
- Boutique, dedicated Amazon management firm.
- Focus on high-touch service and support.
- Strong performance record across clients.
- Price: Starts at 10% management fee.
I recommend exploring 3-5 partners in-depth before selecting the best fit. Prioritize industry experience, Amazon expertise, performance metrics, and customer satisfaction.
The investment is well worth it for the right partner!
The Verdict? Managed Service is a No Brainer!
Phew, we just covered a lot of ground on the power of managed service for Amazon DSP!
Here‘s the big takeaway: working with a seasoned DSP provider gives you an unfair advantage over DIY self-service.
The expertise, exclusive access, and optimized execution you gain is invaluable. Let those benefits unlock your advertising potential in ways you simply can‘t achieve alone.
So when you‘re ready to reach the next level on Amazon, don‘t buy into the self-service hype. Make the smart play and get managed service in your corner!
Have any other questions on getting started? I‘m always happy to help a fellow seller out. Feel free to reach out any time!
Your friend,
William Decker
Amazon Advertising Expert
