There’s been a lot of buzz around Amazon DSP (Demand Side Platform) ever since they rebranded and reinvented it last year.
Prior to that, if you were a registered brand seller with Amazon, you did not have the same opportunities to grow your brand. With Amazon DSP, you can access customers at every level. With DSP, you can reach potential customers via multiple different sites using various other strategies. It’s a game-changer for Amazon sellers and their marketing plans.
Benefits of Amazon DSP Advertising
Reach potential customers where they’re at.
Marketing typically entails a marketing funnel in which a customer’s journey from product awareness to purchase is evident. Other steps along the way may vary, but the stages in a marketing funnel generally refer to how potential customers deepen their engagement with your product or brand through steps like consideration, evaluation, interest, or intent.
The marketing funnel is a framework we can use to explore the different features and services that Amazon DSP offers sellers.
Amazon DSP offers sellers the opportunity to focus on any stage of the funnel or spread their advertising dollars across the entire process. Amazon DSP offers two basic advertising strategies; Brand Awareness and Sales Driven.
Brand Awareness – A customer can’t buy your product if they don’t know it exists.
Amazon DSP offers multiple types of ads to showcase your product and brand to new customers. Static or dynamic display ads are a great way to reach potential customers when they search for an item. This type of strategy is based on impressions, click-throughs, and page views.
These ads are usually graphic based and generally include a product image and call to action. Static Ads link back to different sites, such as your storefront, website, or product detail page. Dynamic ads look similar to static ads, but they include a button that automatically takes customers to your product details page for immediate purchase.
Video Ads are also available and have a very proven track record for engaging new customers. At least half of all potential customers are willing to watch video ads that relate directly to a product for which they are in the market. This number is even higher for Gen Z shoppers, who are currently one of the most desirable markets for many product categories due to their newfound earning and spending potential.
Another type of video ad on Amazon FBA is what’s known as Over The Top (OTT) video ads. These are higher quality ads that run on direct-to-customer media content services, such as Prime and Fire TV. These ads are even more effective for the middle layers of our Amazon marketing funnel, which we will explore next.
Next Steps – Drawing Potential Customers Closer to a Purchase
The second type of marketing strategy that Amazon DSP uses is Sales Driven; this strategy focuses on targeting customers who have engaged with your brand in some way, clicked to your page, watched one of your ads, searched for related products, to name a few. It allows you to reach customers across Amazon’s network, using all of its sites and reaching customers outside Amazon.com borders.
Amazon DSP uses Programmatic Advertising to make sure that your ads appear to potential customers at precisely the right time to move them through the marketing funnel. How do they do this? Amazon uses user data across all platforms to understand buyers, categorize potential buyers according to their needs and purchasing styles, and market to them at the most effective times.
This is why the Amazon DSP utilizes impression-based advertising vs. its traditional Sponsored Ad Advertising, which is Pay Per Click (PPC). Impression-based advertising means that you pay when your ad is shown rather than when a potential customer clicks on it. This might sound like it’s not as good a deal for you, the seller, but because of programmatic ad technology, it is.
The reason is, Amazon does such an excellent job of reaching customers at the exact right moment that these ‘impressions’ are precious. So much so that when setting up an Amazon DPS Campaign, you are setting up to ‘bid’ on these impressions, so the price of each is based on demand.
Making a ‘Potential’ Into a Purchase
Amazon is known as the largest online retailer in the world. You can see just how many people are accessing the marketplace and how many potential conversions exist. Amazon DSP uses its programmatic campaigns to retarget potential customers who’ve looked at your ads in the past, re-engage lapsed customers who’ve previously made purchases with you, and steer new buyers away from your competitors. All of this leads to more sales for you.
Another critical piece of data Amazon has is purchase information. All of Amazon’s previous purchases can be cross-referenced with user data in ways that no other online advertiser can. Google may have access to people’s search data, but only Amazon can pair search history and keyword use with so many concrete purchases; Amazon DSP uses this to give even more focus and consideration to your products.
One final benefit of Amazon DSP is that it includes a robust creative component that automatically draws images and content together from your product listings. This can be a real-time saver and help you put out great static ads with little addiction cost.
From awareness to purchase, Amazon DSP offers sellers a robust suite of options and tools to manage and accelerate wither marketing strategies from awareness to purchase.
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