Amazon DSP: What you need to know to get started


January 19, 2022

As more customers are increasingly beginning their shopping journey online, devising a holistic Amazon advertising strategy has never been more important. Below we explain the benefits of using Amazon DSP and how to use the platform to drive incremental sales.

Amazon DSP is a demand-side platform that allows brands to use programmatic advertising to reach new and existing audiences on and off the marketplace.

Why use Amazon DSP?

Amazon DSP allows brands to leverage the extensive audience targeting capabilities that Amazon gathers from customers that shop on the marketplace. The data which is only accessible through the platform lets brands view unique insights into shopper purchase history and intent. 

Amazon DSP is beneficial for brands in all different verticals, categories and sizes. Established brands can use Amazon DSP to unlock additional insights into their shoppers and drive brand and product awareness, whereas start-ups and more agile businesses can gain further insights into who their shoppers are to help bolster their visibility on Amazon. 

This data provides brands with a deep comprehension of their audiences and allows them to produce the likes of mobile banner ads, desktop display ads and more to drive brand awareness and retarget potential customers both on and off the marketplace.

Whilst other ad types such as PPC and Sponsored ads on Amazon may offer the best chance to reach audiences actively looking to buy, DSP ads help to keep shoppers engaged throughout the marketing funnel, so that when they see your Sponsored ads they are more likely to be converted by them. For this reason, we suggest using Amazon DSP ads in conjunction with your other marketing activity to strengthen your efforts and further boost your sales on the marketplace.

Getting started with Amazon DSP

When starting out, we recommend that brands have a minimum media investment since the platform is so reliant on data to work. Amazon DSP is entirely algorithmic in understanding what types of shoppers to serve an advert to in real-time, so the more data that you can feed the algorithm, the more efficient, effective, and impactful your DSP advertising campaigns will be.

It’s also advisable for brands to have an evergreen, always-on approach to ensure that you're continuously fuelling the platform’s algorithm. From the start, you will be frequently discovering new shoppers and new trends in the market; so carrying out multivariate split tests, experiments, trialling out different types of ad creatives and formats, and promoting additional ASINs is key to optimising your strategy. An always-on technique will help the algorithm work harder for your brand, enabling you to follow a data-driven approach to advertising and capitalise on current or seasonal sales trends.

Achieving a return on investment with Amazon DSP

Typically, within the first one to two weeks, you will obtain sufficient data to understand what tactics and strategies are working. This preliminary top-level data allows you to make the necessary optimisations to your ads to help boost conversion. These improvements could be anything from targeting a certain audience type with your ads to targeting specific websites or even using a certain creative format for your ads.

By the end of month one or two of using Amazon DSP, there should be enough data to begin new audience discovery for your brand. This data can help you to identify key behaviours that align with known shoppers and prospect new customers with similar behavioural attributes to your existing customer base to drive incremental sales. 

Molzi’s team of Amazon advertising experts work with brands of all sizes to determine the best advertising strategy in-line with their overall business. Learn more about how we help brands optimise and drive the performance of their advertising strategies using Amazon DSP here.  

If you have questions about how your brand can best use Amazon DSP to grow awareness and conversions or would like to understand how to use your ad spend budget in the most effective way, don’t hesitate to get in touch. 

 

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David Bradley, Head of Advertising

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