AMAZON DSP Agency

Amazon DSP Agency: Programmatic Advertising for Increased Reach and Revenue

Numerous sellers on Amazon offer a variety of products, facing no shortage of diversity in offerings or fierce competition. For those distributing products on Amazon, standing out against competitors is crucial to securing conversions and maintaining economic stability. However, customers also require a nudge to transition from passive interest to active purchasing. This is where Amazon DSP (Demand Side Platform), a key component of Programmatic Advertising, plays a pivotal role. As an Amazon DSP agency, we unlock the potential to boost the traffic and conversions of your listings, thereby increasing your revenue.

Amazon DSP Agency: Definition

An Amazon DSP agency specializes in programmatic advertising aimed at reaching defined target audiences both on and off the Amazon platform, enhancing revenue, brand awareness, and click-through rates. As such, an agency focused on Amazon DSP has two primary objectives:

Profitability and revenue growth
Increasing Brand Value and Awareness

A Demand Side Platform utilizes collected data to create targeted audiences, which are then reached through display and video ads. This strategic approach not only amplifies your visibility among potential customers but also significantly boosts your chances of conversion, thereby elevating your brand's market position and financial outcomes.

5 Benefits of Partnering with an Amazon DSP Agency

Understanding the benefits of partnering with an Amazon DSP (Demand Side Platform) agency can be pivotal for sellers looking to enhance their visibility and performance on the Amazon platform. Here are five key advantages of utilizing a specialized Amazon DSP agency:

1) Amazon DSP Managed and Self Service

Amazon offers two distinct advertising services: Managed Service and Self Service. The Managed Service is a full-service option where Amazon's team handles all aspects of DSP campaign creation and management, starting at a minimum advertising budget of €30,000 per month, with Amazon charging a percentage fee of the ad spend.

Self Service, on the other hand, allows Amazon DSP agencies and businesses to create and manage their campaigns independently, although Amazon sets strict criteria for granting Self-Service accounts. Agencies offering Amazon DSP Managed Services also require a minimum budget but provide an alternative for utilizing DSP.

Additionally, ICONIC SALES offers training to acquire the necessary skills to operate Amazon DSP independently.

2) Full Amazon Advertising Funnel

At ICONIC, our Amazon DSP agency can manage your entire Amazon advertising funnel. Traditional marketplace strategies often reach potential buyers only during the product search phase, where the customer already has a purchase intention. Amazon DSP enables engagement with customers throughout their entire customer journey. Successful Amazon Advertising requires:

Clearly defined business objectives.
A thorough understanding of product life cycles.

Different factors are considered at various stages of the customer journey, depending on whether the customer is already familiar with your product or if it's an innovation that requires understanding.

3) Amazon DSP Retargeting

Sellers on Amazon can leverage a combination of Advertising Console and Amazon DSP for significant benefits. DSP retargeting campaigns target customers who have already shown purchase intent, advertising to them both on and off the Amazon platform. For profitable campaign execution, ASIN retargeting campaigns should be considered, following the principle that earlier funnel targeting is more costly but also more likely to convert interest into purchase.

4) First Party Data from Amazon

Using Amazon Audiences (First Party Data), advertisers can target users who have viewed specific product categories (e.g., furniture) but have not made a purchase, regardless of their internet location. Once a user purchases a product, they are automatically excluded from seeing related ads, enhancing the efficiency of ad spend.

This capability also extends to learning from user behavior to identify and target new, unknown audiences based on successful ad types across different placements.

5) Amazon DSP Targeting, Algorithm and Brand Safety

Amazon DSP's targeting capabilities allow for advertising across various devices, recognizing that customers may switch devices throughout their purchasing journey. Exclusive access to placements, such as on Kindle Fire tablets, is possible only through Amazon DSP.

In addition, only the Amazon DSP can exclusively access Kindle Fire tablets, for example, and display banners there.

The DSP algorithm matches available ad spaces with campaign goals in real-time, ensuring that ad buys are automatically optimized for performance. Brand safety and ad fraud prevention are critical components, with Amazon verifying impressions before and after delivery, charging advertisers only for verified impressions.

Brand Safety and Ad-Fraud Prevention play a crucial role in Amazon DSP as well. Amazon reviews the "impressions" before and after delivery. Advertisers only need to pay for impressions that pass the verification process.

Targeting Options of ICONIC SALES Amazon DSP Agency

Amazon DSP Standard Display Ads (SDAs)

With Amazon's Standard Display Ads, advertisements can be designed in various sizes, allowing a creative interplay between corporate identity and creative elements. These can be static images or dynamic animations. The most popular formats for Amazon DSP advertising include:

"Skyscraper" (120 x 600 Pixels)
"Banner" (468 x 60 Pixels)
"Leaderboard" (728 x 90 Pixels)
"Square" (250 x 250 Pixels)
"Half-page ad (300 x 600 pixelss)
"Rectangle" (336 x 280 pixels)
"Billboard" (970 x 250 pixels).

Amazon DSP Responsive E-Commerce Ads (RECs)

Dynamic E-Commerce Ads are always automatically designed by Amazon DSP agencies and are always based on an ASIN. The display format of dynamic ads is automatically adjusted, meaning if the focus is on product reviews, the ad will display with a rating. As an Amazon DSP agency, we ensure that campaign goals align with your preferences. Notably, the link always directs to the product on the Amazon Marketplace.

Amazon DSP Video Ads (VAs)

Video Ads are displayed on desktop and applications. ICONIC SALES Amazon DSP Agency distinguishes between three different advertising formats:

In-stream video ads,
Out-stream video ads and
In-app interstitial video ads.

In-Stream ads are typically embedded within other videos. Out-Stream videos are not linked with other content. In-App Interstitial advertising, while very similar to Out-Stream video ads, overlays the actual content.

Benefits of an Amazon Demand Side Platform

As an Amazon DSP agency, we grant you full access to all exclusive advertising networks on the Amazon platform. We run programmatically-driven campaigns that achieve much greater reach than conventional "Sponsored Ads". Beyond this extended reach, we also leverage Amazon's user data to target advertising campaigns as precisely as possible. Other display advertising providers, such as Google or Facebook, only make assumptions about user and purchasing behavior. After a user clicks on an advertising banner, Google and Facebook can no longer make significant statements about user behavior. However, Amazon Advertising DSP is different: Amazon has precise knowledge of search, purchase, and return behaviors. Utilizing audience data can prevent scatter loss when creating target groups and direct ads at the right moment in the sales funnel. Real-time analysis ensures that the surfing and shopping behavior of customers is accurately analyzed, enabling targeted communication at the moment of purchase interest or intent.

Frequently asked questions (FAQ)

What is Amazon DSP?

Amazon DSP (Demand Side Platform) enables advertisers to programmatically buy advertising space both on Amazon platforms and on external websites. It is a system that enables targeted advertising to be delivered to specific target groups based on data and user behavior.

How does Amazon DSP work?

Amazon DSP uses data and algorithms to buy advertising inventory in real time. Advertisers can define their target groups based on various criteria such as buying behavior, product searches and customer segments. Ads are then automatically delivered to these audiences to maximize efficiency and relevance.

What advantages does Amazon DSP offer?

Benefits include advanced audience targeting options, access to exclusive Amazon advertising inventory, the ability to reach users across multiple devices and platforms, and detailed campaign performance reports that enable accurate measurement of ROI.

How does Amazon DSP differ from Amazon PPC?

While Amazon PPC (Pay-Per-Click) focuses on keyword-based ads within the Amazon platform, Amazon DSP allows programmatic access to a broader range of ad spaces on both Amazon and external sites based on user behavior, not just keywords.

What does Amazon DSP cost?

The costs for Amazon DSP vary depending on the campaign objective, target groups and market conditions. DSP works on a programmatic bidding model where prices are determined dynamically according to supply and demand. A minimum budget may be required to use the platform.

How to choose an Amazon DSP agency?

Choose an agency with proven experience in Amazon DSP campaigns, transparent reporting and billing procedures, and that offers strategic advice and continuous optimization of your campaigns.

What success stories are there about Amazon DSP?

Many brands have increased their brand awareness, reached new customers and increased their sales by using Amazon DSP. Success stories often include detailed case studies that show how significant improvements were achieved through targeted targeting and campaign optimization.

What are the best practices for Amazon DSP campaigns?

Best practices include setting clear campaign goals, leveraging Amazon's rich data for precise targeting, continuously monitoring and adjusting campaigns, and integrating with other Amazon advertising solutions and strategies.

Can anyone use Amazon DSP or are there requirements?

Amazon DSP is available to both large brands and independent sellers, however a significant advertising budget and understanding of programmatic advertising is often required to use it effectively. Smaller sellers may benefit more from Amazon's PPC offerings.

How do you measure and analyze the success of DSP campaigns?

Amazon DSP provides detailed reports and analytics that include impressions, clicks, conversion rates and other key performance metrics. Successful campaigns are characterized by continuous monitoring, analysis of this data and adjustments based on performance indicators.

Does this sound complicated and like a lot of work to you? At ICONIC SALES, we're happy to take this off your hands. As an Amazon DSP agency, we work with Amazon Ads every day and are always up to date. Our team of Amazonexperts will implement campaigns for you and can also enhance your marketing with Amazon SEOand other servicesor bespoke agency training.

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AMAZON DSP Agency

Amazon DSP Agency: Programmatic Advertising for Increased Reach and Revenue

Amazon DSP Agency: Definition