Display on Amazon pages and apps (e.g. Amazon.com or Amazon App)
Amazon DSP advertising
Refined target group approach
Amazon Advertising is becoming more complex as it develops. The additional professionalization of advertisers further increases the competitive pressure. Amazon advertising has become an indispensable discipline without which you will lose out.
Die zusätzliche Professionalisierung der Werbetreibenden erhöht den Wettbewerbsdruck weiter. Amazon-Werbung ist zu einer unverzichtbaren Disziplin geworden, ohne die man auf der Strecke bleibt.
Amazon DSP
Amazon DSP stands for “Demand Side Platform” and is, therefore, part of the Programmatic Advertising on Amazon. Amazon DSP makes it possible to reach potential buyers on an earlier stage of their customer journey and direct them to a specific brand or product. The biggest “superpower” of Amazon DSP is to use millions of customer accounts specifically for advertising inside and outside of the marketplace Thus, any “non-seller” (e.g. insurance companies, energy suppliers, fintech, banks, IT consultancies, etc.) can use Amazon customer data to promote their services.
Retargeting-Campaigns
Brand-Awareness-Campaigns
Product-Awareness-Campaigns
Amazon’s DSP focuses on display and multimedia campaigns on the marketplace website as well as display-networks outside of Amazon’s platform. The possibility to place advertisements outside of Amazon is the most significant difference to the “classic” Amazon Advertising in the area of Performance Marketing.
Furthermore, the Demand Side Platform (DSP) differs from the Amazon Advertising Console in two essential points. Advertisements in the Advertising Console are billed according to the Pay per Click (PPC) model. There are no costs for the advertiser until the customer has clicked on the ad. Amazon DSP is billed according to the Cost per Mille principle “CPM” (also called “cost per thousand advertising impressions”). Costs here, are incurred per 1,000 ads/impressions, independent of clicks on the ads. These different billing models require different approaches to budgeting and campaign planning.
The perfect advertising network with Programmatic Deals
Advertising is only as good as the advertising space on which it is played. Therefore, it is necessary to get high-quality advertising inventory. With a well-stocked partner network, you always get the quality you need through programmatic deals.
Synergy between search and programmatic advertising
Coordinated measures and the linking of onsite and offsite advertising promise an effective approach along the entire customer journey. Only when advertising on Amazon is combined with advertising off Amazon can the full potential be achieved.
PLAYOUT OF THE ADVERTISING CAMPAIGNS WITH AMAZON DSP
Amazon operated websites (e.g. IMDb + Audible) ) and external websites
Third party apps through the integration of Amazon DSP with top Open Exchanges
5 REASONS FOR AMAZON DSP.
Restructuring Amazon Marketing Services and Amazon Advertising Platform
Before the restructuring of Amazon Marketing Services (AMS) and the Amazon Advertising Platform (AAP), these advertising opportunities were managed under Amazon Media Group (AMG). As a result of the change from AMG to Amazon Advertising, the advertising activities were also renamed. The Advertising Console manages Amazon Marketing Services, and the Amazon DSP consoles control the Amazon Advertising Platform. All advertising activities can now be managed centrally through Amazon Advertising Website.
The use of Amazon DSP is possible for Amazon sellers, as well as for companies that do not offer their products on the platform. With Amazon DSP, sellers and vendors can extend their reach far beyond the possibilities of sponsored product campaigns and companies that do not offer products on Amazon benefit from the unique USP “Amazon Audiences” or Amazon 1st Party Audience Data.
“Amazon Audiences” are Amazon customers (Amazon accounts), defined by their purchase, search and activity history of accurate and detailed information. This information is, of course, prepared in compliance with DSGVO (GDPR). Thus, advertising companies do not take any risks regarding data protection violations.
AMAZON DSP MANAGED AND SELF SERVICE
Amazon distinguishes between two different services that can be used for this advertising opportunity. Interested parties have the option of using the Amazon Managed Service. With this full service from Amazon, Amazon employees take over the complete creation and management of the DSP campaigns. This service can be booked by Amazon from an advertising budget of EUR 10,000 per month. Amazon charges a fee based on a percentage of this advertising budget.
With the Enterprise Self-Service use of DSP, companies and agencies can create and manage the campaigns themselves. Amazon reserves the right to assign self-service accounts according to strict specifications. Only a few large companies are given access to a self-service account. This account is often preceded by a successful collaboration in Amazon’s Managed Service.
Another option for using Amazon DSP is the managed service from agencies. No minimum budget is required for this. However, EUR 5,000 per month is recommended in order to generate sufficient impressions and thus a meaningful reach.
FULL AMAZON ADVERTISING FUNNEL
By using the Amazon DSP, the entire Amazon advertising funnel can be used. Merchants who only focus on using Amazon Marketing Services via the Advertising Console can only reach potential buyers on the marketplace during the product search. Often, the customer already has a specific purchase intention and is in the purchase intention phase. By using the Amazon DSP, the customer can be accompanied through the entire customer journey.
An important basic prerequisite for the successful use of the entire Amazon Advertising Funnel is precisely defined (company) goals and knowledge of the respective product life cycles. Different indicators are used to measure success in the individual phases of the customer journey. Does the customer know my product or is it an innovation for which understanding and awareness still need to be created?
With the Enterprise Self-Service use of DSP, companies and agencies can create and manage the campaigns themselves. Amazon reserves the right to assign self-service accounts according to strict specifications. Only a few large companies are given access to a self-service account. This account is often preceded by a successful collaboration in Amazon’s Managed Service.
Another option for using Amazon DSP is the managed service from agencies. No minimum budget is required for this. However, EUR 5,000 per month is recommended in order to generate sufficient impressions and thus a meaningful reach.
Awareness & Purchase consideration
Important KPIs for the goal of brand awareness can include impressions and the reach of unique users. In this phase of the sales funnel, the primary focus is not on profitable sales, but on making customers aware of the product or brand.
Detailed page views play a particularly important role in the purchase consideration phase. Has the customer considered and clicked on a product? The target group is often broader when campaigns are controlled via DSP than during the purchase consideration phase.
Purchase intention & Purchase decision
Amazon’s first-party data (Amazon Audiences) can be used especially in the purchase intention phase (but not only). With the help of the DSP, interested parties who have looked at similar products in the last 30 days but have not purchased them can be targeted. Detailed page views remain a key KPI for a successful approach.
Data such as “added to shopping cart” or “added to wish list” plays an important role in the purchase decision stage. The ROAS (Return on Advertising Spend) comes to the fore when the purchase is completed.
Conversion & Conclusion of purchase
Companies that offer products on Amazon can particularly benefit from the combination of Advertising Console and Amazon DSP. The use of retargeting campaigns via DSP should be emphasized here. Customers who are already in the purchase decision phase and have not converted can continue to be advertised on and off Amazon with the help of DSP retargeting. If the goal is a profitable display of advertising campaigns, ASIN retargeting campaigns must always be considered.
As a rule of thumb, the further up the funnel you go, the more expensive it is to convert a prospect into a buyer.
ADVANTAGES OF THE AMAZON DEMAND SIDE PLATFORM.
By using the Amazon DSP, the advertiser has access to exclusive Amazon advertising networks as well as almost all major open exchanges and supply-side platforms (SSPs). Thanks to these advertising options, the placement of programmatically controlled campaigns offers a significantly higher reach than “just” sponsored ads as well as a broader and more diverse playout. Amazon’s user data can also be accessed. By using this first-party data (Amazon Audiences), it is possible to play out advertising campaigns more precisely than ever before. Other providers of display advertising campaigns (Google, Facebook, etc.) can only make assumptions about user and, in particular, purchasing behavior. After clicking on an advertising banner (e.g. for an online store), these providers can no longer make any statements about user behavior. Amazon, on the other hand, knows the actual search, purchase and return behavior. By using Amazon’s audience data when creating the target group, wastage can be avoided and the ads can be targeted at the right time in the sales funnel. The automated and real-time analysis of Amazon customers’ browsing and shopping behavior means that this data can be made available via the DSP. It is possible to target users with a current interest in buying or a specific purchase intention.
With traditional advertising networks, the aim is often to display advertising based on the supposed interests of the user. For example, if a user visits a website to find out about modern interior design, advertisements for suitable pieces of furniture are placed on this page.
By using Amazon’s first-party data (Amazon Audiences), users who have looked at furniture products on Amazon but have not yet purchased them can be targeted – regardless of where they are on the internet. If this customer buys a chair, for example, they are automatically excluded from further advertising.
It is also possible to show the converted prospective customer other, similar products (e.g. a matching table), as it is known from the sale that they have already purchased a piece of furniture. In addition, the algorithm learns from user behavior which ad types work on which advertising spaces. These findings can be evaluated with the help of reports in order to identify further, previously unrecognized target groups and advertise to them in a targeted manner.
Amazon DSP: Targeting
Another advantage of the Amazon DSP is the possibility of cross-device targeting. Depending on the product category, the prospective customer uses different devices to complete a purchase. With the help of the Amazon DSP, it is possible to display advertising on different devices. In the course of the customer journey, some customers switch devices and complete the purchase there.
Amazon DSP: Algorithm
The Amazon DSP algorithm analyzes in real time whether existing advertising spaces correspond to the campaign objectives. In this way, it is automatically and without delay checked whether advertisements (impressions) are purchased. The real-time bidding (RTB) approach is already familiar from other providers. This automatic comparison of advertising spaces and campaign targets enables the algorithm to optimize the playout.
Amazon DSP: Brand Safety
Brand safety and ad fraud prevention also play a key role at Amazon. Amazon checks the impressions before and after delivery using a combination of manual tests and cooperation with leading technology companies. The advertiser only pays for impressions that pass this verification process.
TARGETING OPTIONS WITH AMAZON DSP.
Standard Display Ads (SDAs)
When using standard display ads, the ads can be individually designed in different sizes. It is possible to work with creative elements and the corporate identity. The standard display ads can be a static image or an animation.
Different format sizes and landing page options apply for playout in apps. Popular formats for these display campaigns are
- Skyscraper (120 × 600 pixels)
- Banner (468 × 60 pixels)
- Leaderboard (728 × 90 pixels)
- Square (250 × 250 pixels)
- Half-page ad (300 × 600 pixels)
- Rectangle (336 × 280 pixels)
- Billboard (970 × 250 pixels)
Dynamic E-Commerce Ads (DEAs)
The Dynamic eCommerce Ads are designed automatically and individually and are always based on an ASIN. The display format is automatically adapted depending on the advertising space and the KPIs. If a customer attaches importance to the product reviews, the ad is displayed with a rating. Amazon compares the goals of the campaign with the customer’s preferences when displaying the ad.
These ads get their name from their dynamic structure and the automatic adjustment of the advertising banners.
Incidentally, the corresponding product on the Amazon Marketplace is always linked here.
Videos Ads (VAs)
The video ads are displayed on mobile, desktop and in apps. Three different advertising formats can be distinguished here: In-stream video ads, out-stream video ads and in-app interstitial video ads.
- In-stream video ads are usually integrated into other videos as pre-rolls.
- Out-Stream Video Ads are stand-alone videos and are not linked to other content.
- Similar to out-stream video ads, in-app interstitial video ads are independent advertising videos. However, the in-app videos cover up the actual content, which is why they are often perceived as “annoying” by users.
Advertisers should provide many different banner formats to ensure that their ads are as likely to be displayed as possible. As an Amazon agency, we are happy to support you with our creative team.
The points mentioned must be observed not only at exact keyword level, but also in broad and phrase matches.
FAQ: FREQUENTLY ASKED QUESTIONS ABOUT AMAZON DSP
The Amazon DSP can be used by anyone. Even companies that do not offer products on Amazon can take advantage of this service. However, access to the advertising platform is required, which is currently only granted to a few partners.
There are two ways to gain access to the Amazon DSP:
- Managed service: Amazon manages the campaigns for you. This is ideal for companies that do not have experience with programmatic advertising themselves.
- Self-service: Advertisers or agencies receive direct access and can manage their campaigns independently. Amazon only grants access to qualified advertising partners or agencies.
Amazon offers the managed service for companies that can provide a minimum budget of €50,000 to €100,000 (depending on the region). The exact amount may vary depending on the campaign objectives and the geographic market.
Self-service access is only granted by Amazon to certain partners or agencies. A direct application is possible, but Amazon prefers experienced DSP users or official Amazon advertising agencies. Companies can also secure access via Amazon advertising agencies.
Yes, the minimum budget depends on the option selected:
- Managed service: At least €50,000 – €100,000, depending on the region.
- Self-service: There is no official minimum budget, but in practice advertisers often need at least €10,000 – €15,000 per month to achieve significant results.
The costs in the Amazon DSP are based on a CPM model (cost per mille), i.e. the cost per 1,000 impressions. The price depends on various factors, including
- Target group and competition
- Advertising format (e.g. video vs. display)
- Placement (on-Amazon or off-Amazon)
Additional service fees may apply if the managed service is used.
Amazon DSP campaigns should run for at least 6-8 weeks to collect enough data for optimization. A duration of 3 to 6 months is often recommended in order to develop the full effect of retargeting and brand building strategies.
Amazon DSP is particularly suitable for:
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Retargeting – reaching users who have already shown interest in products
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Brand awareness – increase brand visibility through high-quality placements
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Cross-selling – addressing existing customers with complementary products
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Reaching target groups outside of Amazon – The DSP can also be used outside of Amazon
Knowledge & Structure
As a knowledge leader, we are always one step ahead of the competition. All employees are Amazon-certified advertisers and number crunchers. In addition, ameo is built on a sophisticated and granular advertising structure that offers both excellent analysis and targeting options.
Amazon Advertising
Certification Program.
Why do i need an
Amazon Agency?
As a specialized Amazon agency, we place your brand and your products on Amazon with lasting success despite increasing competition. With our service portfolio focused exclusively on this marketplace, expert knowledge and a lot of personality, we are happy to accompany you on your way to more success on this special channel.
Amazon consulting works.