Amazon DSP: What Is It, Who Is It For, and How Ideoclick Can Help


92% of online shoppers in the U.S. buy from Amazon. As buying patterns adjust to the dramatic impact of COVID-19, that number will only grow.

Now, it’s even more critical for brands selling on Amazon to leverage the best data available to reach the right audiences. What’s the best way to do that? Focusing on Amazon’s targeted Demand Side Platform (DSP) advertising capabilities.

On Amazon’s internal advertising platform, companies can create ads that will be displayed in Amazon’s search results when consumers use certain keywords. Buyers show up on Amazon with money to spend and specific products in mind.

With luck, they’re searching with keywords relevant to your business offerings.

Sponsored Ad campaigns only provide a birds-eye view of your target audience, though. It’s like using a cannon to hit a bullseye – shrapnel sprays in a general direction, but with no precision.

It’s easy to ‘hit’ a target with a cannon, but are you really hitting where you want?  If your business isn’t reaching goals with Sponsored Ads, keep climbing. DSP provides winning strategies with highly targeted ads that hit the right shoppers at the right time.

What Is It?

Amazon DSP allows advertisers to purchase audio, video, and display ads that are shown based on a custom algorithm. DSP targeting is based on gathering information necessary to create a buyer persona. For instance, DSP relies on shopping history, browsing patterns, demographics, and competitor ads, which enables precise retargeting.

One of the main highlights of DSP ads is the ability to make data-based decisions. Campaigns can rely on all the first-party shopping information that Amazon has collected for them.

DSP advertising is also a study in shopper behavior. To make ad display decisions, data collection services ask these questions.

  • Which shoppers are you trying to target?
  • Which competitor products have they viewed?
  • What’s the best way to retarget these consumers and get them to convert?

Plotting a campaign means prodding your audience’s psyche toward your products.

Who Is It For?

It’s easy to feel challenged by Amazon, and it’s even easier to plateau. You need an accessible, informative, hands-on approach to level up past traditional Sponsored Ad techniques.

You may be facing these problems:

  • You’ve maxed out the potential of Sponsored Ads and need to level up.
  • Your efforts to aggressively drive sales and own your space have fallen short.
  • Competitors are capturing the sale before you do.

Thanks to involved targeting, DSP is an excellent solution to these issues.

You’ll need to establish your target audience and set up test cells. This involves research, savvy data collection, and creating data categories. Demographics, clickstreams, geographic location, shopping behavior, and more are all factors.

What’s the end goal? Building a comprehensive strategy layered on top of your Sponsored Ad campaigns. The holistic approach you’ll need is a targeted, highly effective combination.

Being overwhelmed at this stage is common—because taming a corporate giant like Amazon is challenging! That’s why you need a complete managed services agency in your corner.

How Ideoclick Can Help

If you’re new to DSP, some additional steps are necessary to launch a campaign. You’ll want to maximize your dollars with winning strategies, so there are some additional considerations.

To start, DSP requires a minimum campaign spend of $10k. You’ll also need to strategize ahead of time, because approvals are necessary for creative assets and audience segments. Since a CPM pricing model is used, you’ll also need an insertion order in place.

There are lots of decisions to be made, and each one has impact.

  • What are the right targets, based on psychographic, demographic, and behavioral information?
  • What is the message being served to these audiences?
  • What KPIs have you identified?
  • What optimizations are being done to routinely course-correct and meet those KPIs?

With a knowledgeable expert running your campaign, your company won’t be an outsider any longer. Instead, you’ll understand exactly what’s going on with your campaign, and how it’s poised to meet your goals.

Are you still not sure if you’re ready to move onto DSP campaigns? It’s a big world out there, which is why we’re here to make the transition easy. If you’d like to explore DSP advertising, contact us! We’re happy to hear from you.

About The Ideoclick Team

About Ideoclick
Founded in 2008 by former Amazon executives and harnessing over 200 years of Amazon experience, Ideoclick provides the industry's leading e-Commerce Optimization Platform, delivering a unique combination of cloud-based software, subject matter expertise and insight to businesses that sell on Amazon. Today, Ideoclick helps hundreds of brands achieve transformative results, representing more than $4 billion in annual e-Commerce product sales. For more information, please visit: www.ideoclick.com.

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