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Amazon DSP

How to reach your target group guaranteed

Already a few weeks ago we informed you that Amazon is carrying out some rebranding measures. AAP - the Amazon Advertising Platform - was also affected. No fundamental features have changed in terms of content. But the name has changed: AAP now runs under the name Amazon DSP. The abbreviation DSP stands for Demand Side Platform. But what exactly can this platform do? And how can you benefit from it? We explain.

Amazon, like no other company, has an extremely valuable treasure trove of data. As the largest e-commerce player, Amazon possesses countless quantitative, qualitative and, above all, exclusive customer data. Automated and in real time, Amazon (unlike Google or Facebook) can evaluate the surfing and, above all, shopping behavior of consumers. Amazon is in extensive possession of so-called first party data, which goes far beyond the usual demographic and interest-related information. Rather, this is data that goes deep into the search and, in particular, purchasing behavior of millions of users. And it is precisely this data that is becoming increasingly important in the targeting of advertising campaigns. Amazon is now making this customer data available to customers via the DSP - Demand Side Platform.

But what does that mean exactly? And where are the advantages?

Amazon DSP enables sellers and vendors to programmatically reach target groups both on Amazon's own space and on all relevant display networks simultaneously. Due to the valuable data background, direct growth can be targeted. Through improved targeting, users with an interest or intention to buy can be specifically addressed via DSP. An example: You are a manufacturer of coffee filters. Through DSP, you can now reach users who have been clearly identified as coffee maker owners based on their search and purchase history and, in the best case scenario, have found out about different coffee filters on Amazon in the past. The ads can now be played out to exactly this group on available advertising spaces all over the Internet as well as in Amazon's own environment. The click-through rate and purchase probability of the users is higher, since the ads displayed have a significantly higher relevance for them. This retargeting option is called similiar product remarketing. If users actually buy a coffee filter, they are excluded from future ad targeting. And it gets even better: on the main page, these users can now be shown ads for additional products.

DSP thus guarantees more precise targeting, higher purchase probabilities, a reduction in wastage and a decrease in disgruntled users due to the increasing relevance of the ads.

The big difference to Advertising Console (formerly AMS) is the payment model. While advertisers pay per click for Product Display Ads, Sponsored Products and Sponsored Brands (formerly Headline Search Ads), DSP is billed on the basis of the cost per thousand (CPM). This means that payment is already made for the display - and not just when a user clicks on the ad. The direct consequence of this is that experimenting with ads on DSP is more expensive than with the advertising console, which is popular partly because of its low entry costs. It also means that, on average, a higher budget is required for DSP than for AMS. An investment of €5,000 is considered the absolute lower limit if meaningful results are to be achieved. This is due to the fact that programmatically controlled campaigns themselves draw certain learnings from the ongoing performance in order to achieve the predefined goals, despite a wide variety of predefined targeting. The greater the amount of data, the more effective and comprehensive the learnings.

Incidentally, the demand side platform is particularly concerned with creating increasing brand awareness, while the advertising console (formerly AMS) is more focused on revenue growth.

If you would like more information on DSP, or would like advice on how to implement it, please feel free to contact us at any time at info@iconic-sales.com.

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