Why brands should use Amazon DSP as part of their overall advertising strategy

When discussing Amazon advertising, most brands automatically think of PPC . However, to fully optimise your advertising strategy it is important to consider the use of Amazon DSP advertising as well. As a separate platform away from the marketplace, it has the power to reach a much larger audience than Amazon’s Ad Console can and it is a valuable asset in structuring your entire Amazon marketing funnel campaign.
Consider the boost in your Amazon sales as Molzi gives you the lowdown of everything you need to know to determine whether Amazon’s Demand Side Platform is worth the investment.

What is Amazon DSP?

Amazon Demand-Side-Platform (DSP) is an ad-purchasing platform that allows brands to buy ads across the entire web including on Amazon’s marketplace. Ads can be bought for sites (desktop), apps (mobile) and devices (OTT) meaning you will be able to boost your impressions and target demographic. Amazon’s large data network will also choose the best placements for your ads based on your targeting parameters and buys that ad space for you so you don’t need to choose the ad location. This takes pressure off of a brand having to fully understand where best to target because Amazon DSP will use their intense data to optimise it for you!

Note: Advertisers pay by the number of impressions they want to achieve, i.e. the reach. However, if Amazon deems the advertising impressions to be invalid, you will not be charged for it.

A major perk of Amazon DSP are the targeting options. Amazon offers over 40,000 customer segments for advertisers, and the unique insight into shopper purchase history and intent. This is much more than other DSP platforms. Advertisers can choose from a list of targeting parameters as shown below:

  • Behavioural – Targets consumers based on specific behaviours, such as buying or browsing similar items recently
  • Lifestyle – Targets consumers based on behaviours that, when understood as a whole, suggest a common lifestyle.
  • Contextual – Targets consumers that show an interest in your product by visiting websites thematically related to your product.
  • Remarketing – Targets consumers who came close to buying your product or a competitive product
  • Audience Lookalike – Targets customers who behave similarly to selected groups. Such as a brand’s customers or competitor’s customers.
  • Advertiser Audiences – You provide the relevant groups (customers or prospective customers) that you want to target
 

Additionally, there are two types of DSP ads which can be shown depending on the location you want your ads to be seen: Display Ads & Video Ads however there are also another two varieties that are optimised for mobile consumers.

What are the 4 types of DSP ads?

Source: Amazon
Display Ads

Display ads are the most common type of DSP ad. They can be shown on Amazon, Amazon devices, Amazon owned and operated sites and other websites that allow ads. They can be linked to an ASIN or an Amazon Brand homepage. There are seventeen types of formats to choose from including seven different sizes making them the most diverse in terms of ad size. Moreover, their formatting allows for a more tailored branded message.

Why use display ads?
  • Draw in off-site traffic to Amazon
  • Create a more tailored, on-brand message
  • Exposure to the brand will improve brand recall in a shopping context, whether they clicked on it or not
  • Repeated exposure can build brand trust
  • Allows you to remarket to shoppers who have already looked at your product listings or Brand Store
Source: Amazon
Video Ads

Amazon video ads can be either in-stream or outstream. In-stream video ads (or OTT ads) appear as an ad break on existing videos, either before, during or after. Amazon DSP video ads reach users on Amazon’s  websites (IMDb TV), mobile apps ( Fire TV), and Amazon devices (Amazon Kindle). You can link your video ads through DSP to a product detail page on Amazon or your own site.

Why use video ads?
  • Video ads are the most immersive brand experience for consumers
  • They give brands the opportunity to tell their story to a captive audience
  • Video ads have a higher conversion rate compared to static ads
  • Advertisers can repurpose their professional video content created for different audiences
Amazon DSP Mobile Interstitial Ads
Source: Amazon
Mobile Interstitial Ads

Mobile interstitial ads display full-screen on apps but always include a visible close button. There are two templates to choose from: Medium Rectangle and Full Screen Image. Both templates will expand to match the size of any mobile screen and are supported in applications for iOS, Android, and Fire smartphones and tablets. They are only available in US, UK, DE, FR, IT & ES. Additionally, in the US,  an embedded video can also be included in these ads.

What to know about mobile interstitial ads?
  • 57% of all digital media usage comes from mobile apps alone
  • Always include a CTA inside the safe zone so that customers know where to press
  • Show content surrounded by colour for effect
  • Ads that link to Amazon must include reference to them or the logo
Amazon DSP Mobile Banner Ads
Mobile Banner Ads

Mobile banners allow advertisers to reach and target mobile users on high-quality, third-party mobile applications on Android, Fire Tablet, and iOS platforms. They are available to all Amazon DSP users except those in India. Banners that link to Amazon must include an Amazon logo or a textual reference to Amazon. The banner backgrounds should be simple and non-distracting

What to know about mobile banner ads
  • Text should be minimal
  • Font size should be no smaller than 16pt
  • Banners should distinguish itself from a site’s content
  • The advertiser’s logo or name must be included in mobile banner ads.
  • Advertise specific deals on the ASIN to tempt the viewer to click

 

Advertisers should use a mixture of these ads to fully optimise their advertising campaigns and drive interest and sales to their ASINs from off and on-site.

How should Amazon DSP ads be used within the marketing funnel?

Incorporating Amazon DSP into your overall marketing strategy will help target customers at various points along their shopping journey. This is one of the most effective tools for brands looking to take their advertising strategies and sales performance to the next level.

Amazon DSP strategies can loosely be divided into three main categories, each with their own KPIs:

  • Brand awareness
  • Engagement
  • Retargeting
Note: It always a good idea to always retarget, then layer in mid- to upper-funnel efforts as needed.
Using DSP for the upper funnel

Upper funnel advertising should increase visibility, attracting new attention to your brand. These upper-funnel campaigns will ultimately help you fill your retargeting campaigns and grow the number of people you target at the bottom of the funnel.  Upper funnel advertising should be a blend of reach and quality. Both video and display DSP ads will position your brand in front of the largest possible portion of your target audience.

Depending on the specifics of your campaign, you may benefit from a combination of the following audiences:

  • Behavioural
  • Lifestyle
  • Contextual
  • Audience lookalike
  • Advertise audience
Using DSP mid funnel

Mid funnel advertising is ideal for driving engagement and improving consideration of your product over a competitor’s on Amazon. Competitor retargeting has limited scalability and is not dynamic, so make sure you have other Amazon ad programs implemented at the same time.

For example, you may use the Behavioural audience to show your ads to shoppers who have:

  • Viewed similar, competitive products on Amazon
  • Bought or browsed complimentary products
Using DSP for retargeting

Remarketing, a lower-funnel strategy, will re-engage customers to win back the sale. Studies show 43% of retargeted audiences are more likely to convert. Also, when a prospect sees a retargeting ad they are 70% more likely to purchase your product over your competitor’s.

Brands can use DSP to re-engage shoppers that have high purchase intent for your products via:

  • Pixel based – shoppers who visit your brand’s site
  • Product remarketing – retarget shoppers who viewed your promotions and didn’t convert
  • Brand halo remarketing – retarget shoppers who viewed other products of your brand
  • Similar product marketing – reach shoppers browsing products similar to yours

How to use DSP in relation to Amazon PPC Ad Console

Brands can use DSP to keep shoppers engaged throughout the funnel to drive conversions, but PPC ads may offer the best chance to reach audiences actively looking to buy. The three ad types can be used to attract customers in different ways but together they can create an all-encompassing campaign to attract customers already shopping on Amazon. By this stage, any uninterested shoppers will have filtered out so the PPC ad strategy becomes much more specific and refined focusing heavily on keyword bidding.

Although PPC ads become more important the narrower the funnel, Amazon DSP ads are still useful, especially in building awareness and interest off-site and for retargeting an audience which has shown interest by clicking on a PPC ad but has not converted yet.

Amazon DSP ads therefore do not replace your PPC ad campaign, but instead strengthens it. They push more potential consumers further down the marketing funnel so that when they see the sponsored ad on Amazon they are more likely to be converted by them. It is therefore well worth considering the creation of a DSP ad campaign to further boost Amazon sales.

Considering whether your advertising strategy is as successful as it could be? 

Does your Amazon advertising strategy need a refresh? If you have questions about how your brand can best use Amazon ads to grow awareness and conversions or would like to understand how to use your ad spend budget it the most effective way, don’t hesitate to get in touch today. We have a team of Amazon advertising experts who work with brands of all sizes to determine the best advertising strategy in-line with their overall business

Contact the Molzi Team Today!