What is Amazon DSP? [New 2019 Features]

UPDATE: Jump To NEW Amazon DSP Features

Amazon’s Vendor Premium Services offer vendors—a.k.a. brand suppliers to Amazon’s retail business—an opportunity to enhance their visibility on the marketplace through a variety of marketing programs.

But which programs warrant your investment and which have no real impact on the bottom line?

In the following blog post, we will focus on the structure of Amazon DSP and how Vendors can leverage Amazon’s Premium Services to generate demand.

Note: As of September 2018, Amazon is rebranding all of their AMG, AMS, & AAP features under a new name called, “Amazon Advertising”. The Amazon Advertising Platform is now called Amazon DSP.
 

What is Amazon DSP?

 
amazon-dsp

 

From home page banner placements to HTML offerings, Amazon DSP is a premium advertising offer available within Amazon Vendor Services.

There are two sides to Amazon Advertising including the Advertising Console and Amazon DSP — one is geared towards PPC (pay for clicks), and one is geared towards Display (pay for impressions).

 

amazon-dsp

 

One of the most effective features of Amazon DSP is the ability to leverage Amazon customer data to target shoppers off Amazon (on any Amazon Ad Network site).

How does Amazon DSP work?

Amazon DSP is a programmatic display advertising platform—meaning it uses technology to more efficiently buy and manage your display and video advertising mix.

 

 

“Basically, vendors can layer first party data (3P demo data, client advertising match via Advertiser Audience, and traditional retargeting) across exclusive 1P advertising inventory (Amazon & IMDb) and all of the major exchanges.”

– Jeff Coleman, VP, Marketing Channels at CPC Strategy

 

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These ads can appear in any of the following forms:

  • Desktop Display Ads
  • Mobile Banners Ads
  • Mobile Interstitial Ads
  • Image & Text Ads
  • In-stream Video Ads

 
While all programmatic ad types can be valuable, we’re especially partial to retargeting.

Here are your options:

Pixel based – Shoppers who visit your brand’s site.
Product remarketing – Retarget shoppers who viewed your promoted products but didn’t convert.
Brand halo remarketing – Retarget shoppers who viewed other products of your brand.
Similar product remarketing –Reach shoppers browsing products similar to yours.

In addition, you can add in targeting layers to reach just the right audiences.

These include:

  • Contextual (content of the website)
  • Demographic (M/F, age, income, education)
  • Geographic (zip code)
  • Time of Day (by the hour)
  • Other (device type, browser, etc.)

 

 

“While Amazon Advertising Console (previously known as Amazon Marketing Services) is where we are able to drive significant sales volume for clients, we can only drive so much volume until we hit a plateau. Having the capability to retarget customers gives us the opportunity to target past shoppers and stay top of mind as well as prospect in an effort to gain new customers.”

 Jordan Berry, Lead Marketplace Channel Analyst at CPC Strategy


 

The New Amazon DSP Interface [2019]

 

In March 2019, Amazon introduced 4 new updates to the Amazon DSP user interface including navigation, bulk editing, custom reporting, and creative moderation.

Navigation – One of the biggest changes Amazon made was the “overall look and feel of the Amazon DSP”. According to the announcement, navigating within the Amazon DSP is now more intuitive and efficient than ever before. In the new layout, buttons, toggles, and campaign status information are much more prominent.

Bulk editing – Advertisers can now bulk edit the domain, audience, and location targeting settings for line items. Once you specify the new settings, you can apply them across all of the line items selected (as seen in the example below):

 

 
Custom reporting – This feature allows advertisers to create a report based on your unique requirements and save it within the Amazon DSP report center. You can now select the exact columns you would like to include. Once you run a custom report, it will appear in the report center and will be emailed to the recipients you specify.

 

 
Creative moderation – Lastly, Amazon is working on a number of improvements that will reduce the turnaround time for creative approval. For example, they significantly reduced the average time it takes for advertisers to be notified if your creative needs to be revised.


 

Amazon DSP Q4 Success Stories

 
As you can see in the client data below, in Q4 2018 we saw a significant jump in ROAS for many of our Amazon DSP retargeting campaigns on Black Friday.

  • Orange Line – Represents ROAS
  • Blue Line – Represents Spend

 

(Brand name removed for confidentiality)

 

(Brand name removed for confidentiality)

 

 

(Brand name removed for confidentiality)

 

Experts Chime in on Amazon DSP

 
“It was important to the overall Amazon strategy to be running DSP ASIN retargeting during Black Friday and Cyber Monday. With the natural increase in clicks and impressions, we saw our retargeting pool grow.”

“The CPCs also became more competitive so even if a click did not convert into a sale, we do not view that as wasted spend but rather that click turns into a potential future customer.”

“Purchase intent is higher during this time of year and combining that with a strong advertising strategy, we were able to use retargeting to grow overall revenue.”

– Karen Hopkins, Marketplace Channel Analyst at CPC Strategy

 

 

“For our clients running off Amazon campaigns, specifically targeting customers who have reached the detail page of their products, we noticed a significant spike on Black Friday and Cyber Monday.”

“In some cases, purchases increased 4x to 5x on these particular days. It goes to show that once advertising is controlled on Amazon, having a solid off Amazon strategy is key to capturing all potential customers.”

– Evan Walsh, Senior Marketplace Channel Analyst at CPC Strategy

 

 

“The purpose of running Awareness campaigns is to literally drive awareness of your brand which enables you to generate demand for your products on Amazon.”

“With DSP, you are exposed to audiences on and off of Amazon.com, so leveraging these types of campaigns during Black Friday and Cyber Monday expands your reach during the highest traffic period of the year. Layering in coupons adds another level of engagement and can drive consumers to purchase.”

– Jen Acosta, Sr. Marketplace Channel Analyst at CPC Strategy

 


 

More on Amazon DSP…

 

What is Enterprise Self Service (ESS)?

You can choose to let Amazon manage these ads (Amazon Managed Service) or manage them through ESS (Enterprise Self Service).

ESS is Amazon’s Enterprise Self Service portal in which agencies can access Amazon’s Display/Remarketing (Amazon DSP), rather than going through Amazon’s Internal Managed Services team.

Pro-Tip: Keep in mind brands must go through an agency to gain access to ESS.

What are Dynamic Ecommerce Ads?

Ecommerce Ads boost product visibility through advertising and reach millions of Amazon shoppers with ads linking to product detail pages.

They also help brands drive sales with interest-based or product targeted advertising. This is typically only for current vendors to Amazon and sellers that have access to Amazon Vendor Central.

As seen in the graph below, Dynamic Ecommerce Ads take consumer targeting a step further by showing your potential or returning customer an ad type based on their past purchasing behavior.

 

 

According to Nick Sandberg, Marketplace Program Development Manager at CPC Strategy, AMG allows vendors to target a wider range of potential customers referred to as “in-market” or “lifestyle.”

 

 

Every customer interacts with your ad and values product content differently, which is why Dynamic Ecommerce Ads can be extremely valuable to advertisers.

Within a particular segment, Amazon might advertise to:

“Head of the Household” – Also known as a shopper responsible for running the household

“Product Researches” – A shopper with lots of purchasing power, yet routinely scrutinize even the smallest online items before committing to purchase.

“Impulse Buyer” – A college student on a strict budget

  • In this example, Amazon’s DEA model might determine that the “Head of Household” is more likely to act on a coupon offer, but the “Product Researcher” is more likely to respond to a Customer Review ad, and the “Impulse Buyer” is more likely to add items to her cart.

 
Learn more about Dynamic Ecommerce Ads:

 

Kindle & Fire Experiences

 
Amazon offers ads that appear on Kindle and Fire tablet lock screens as well as placement at the top of the Fire TV home screen. These ads are integrated into the product design and enable vendors to speak directly to their targeted consumers.

 

aap kindle & fire experiences

 

According to Amazon, Kindle, Fire tablet, and Fire TV campaigns can drive measurable brand awareness at cost-per-consideration rates at or below similar web-based campaigns.

Vendors seeking brand awareness rather than a distinct ROI can benefit from programs such as Kindle & Fire Experiences since these programs are similar to the way Display Ads work.

For more on Amazon DSP, email tara@cpcstrategy.com

 

About the AuthorTara graduated from the University of New Hampshire with a B.S. in Journalism / Business. Her passion for creative publishing and quality reporting landed her work opportunities at several companies in Massachusetts, New York and California. She is a leading voice behind CPC Strategy’s Blog. See all posts by this author here.