Understanding Amazon Demand Side Platform (DSP)

Amazon demand side platform
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Amazon Demand-side platform also known as Amazon DSP is a service that enables advertisers to buy display ad placement programmatically and also permit advertisers to retarget, re-engage, reach and educate their audience on and off Amazon.

Did also know you can advertise on Amazon even though you don’t sell on Amazon?. The answer is yes! This is because Amazon DSP is open to all brands.

This means even if you don’t see physical products, you still have great benefits advertising on Amazon is audiences. Amazon understands its audience more than any other advertising platform out there.

If you are still wondering why you should advertise on the platform, here is what you need to know. Amazon understands who buys certain products for example travel material and which type of cards those customers are using to make their purchases.

Also, their demographics, locations every other valuable information you need to know about your targeted audience is already collected and stored for you to launch your campaigns.

Let’s get to understand the definition and some terminologies.

Demand Side Platform definition

A demand-side platform is a software programmatic advertising utilized by advertisers to buy a video, display, search, and mobile ads from publishers’ available advertising inventory, these platforms manage the advertising across RTB networks (real-time bidding).

Programmatic Advertising

This is simply the act of buying, publishing, and selling ads based on highly complex algorithms, today, a majority of ads are displayed online using programmatically through RTB (real-time bidding).

Real-time bidding

This is real-time advertising, a bidding war between advertisers bidding for a chance to buy inventory (Ad space) from publishers, advertisers specify the audience they want to reach with their ads and bid for it.

When an advertiser successfully bid for the ad space, his/her ad will be displayed on said space on the publisher`s websites or blog.

Amazon DSP
Amazon demand side platform

Targeting Options with Amazon Demand-side platform 

Demand-side platform Amazon enables you to reach out to online shoppers anywhere, which also includes members of your audience who have shown an interest in products but haven’t made any purchases yet.

Furthermore, Amazon demand-side platform has the unique ability to enable advertisers to segregate their audience into segments creating better targeting options. These options include;

  • Contextual – this is a segment that targets members of your audience based on their internet interactions, targeting is based on what they browse in real-time and shows ads that have content relevant to their search. 
  • Behavioural – this is a segment for members of your audience that display certain characteristics such as the intention to purchase products in a specific subcategory in the past 30 days. 
  • Lifestyle – this is a segment for members of your audience who demonstrate characteristics of search and purchase associated with lifestyles.
  • Audience Lookalike – this is a segment created for audiences that display the same shopping characteristics as other members of your current customers.
  • Re-marketing – this is a segment specifically to re-engage audiences that have made searches for products, viewed a product or purchases a product similar to what marketers are advertising.

Demand Side Platform Amazon is adopted by the company to ensure appropriate targeting of audiences, this simply means, when a member of the audience views products on the Amazon platform, researched for product on your published website, or on other websites, but did not make any purchase, you can re-target them displaying ads bases on their search that takes them back to the Amazon website thereby compelling them to purchase this product.

The uniqueness of Amazon demand side platform

Amazon demand-side platform (Amazon DSP) is unique from its competitors, Amazon adopts characteristics that make it one of the top runners in this field, these are;

  • Data intelligence
  • Access to Amazon properties 

Amazon permits demand-side platform brands to adopt its data intelligence to create more reach to audiences, Amazon uses big data to keep track of customer purchasing behaviour.

Over the years, Amazon has made it its priority to know relevant audiences’ information such as, what, when, why, who, and what price. This is relevant to the progress of the company as it helps understand and influence audiences’ shopping behaviour.

DSP Amazon Display Ads

The major characteristic of display ads is the adoption of images to transfer information, Amazon demand side platform uses this type of ad the grab and retain audiences’ attention and convince them to make purchases.

These ads aid advertisers engage a vast audience and are displayed in the following forms; 

Targeting your Audience

Advertisers who usually use Amazon DPS have the opportunity to utilize the platform to increase their brand awareness through retargeting and remarketing products on the Amazon platform.

The Amazon DSP platform functions efficiently with more engagement over time, therefore it is advised to run your campaigns for a while thereby giving your brand a more accurate buildup.

Retargeting through Demand Side Platform Amazon

Retargeting with DSP Amazon is possible with the installation of Amazon Pixel on key pages, the audience builder in DSP allows retargeting of the audience based on the following categories:

  • Product views: this includes all views from members of the audience that searched in detail for a particular product. 
  • Product purchases: this includes all types of products that were purchased by the audiences.
  • Similar product views: this includes all views from the audience that Amazon automatically considers similar based on the products they searched for.
  • Product searches: this includes all the searches made by the audience based on keywords similar to the selected products.   

These audience characteristics can be identified and combined to pinpoint the exact customers that are most likely to make a purchase.

Remarketing through Demand Side Platform Amazon

For a successful remarketing strategy, Amazon highly recommends an “always-on” strategy, for advertisers that are intent on remarketing, this means, continuous engagement of those who have shown interest in products advertised. 

It is recommended that advertisers adopt pixel-based remarketing for members of the audience who visit their website directly, product-focused aimed at the audience who viewed your displayed ads, brand-halo for members of your audience who have searched and interacted with similar products to yours.

In Conclusion

Amazon demand side platform or Amazon DSP is an excellent way to boost your brand, it is convenient and provides advertisers with relevant data to engage the audience, thereby creating appropriate ads to capture audience attention.

Amazon DSP is also an excellent tool for retargeting and remarketing, thereby keeping a vast network of audiences engaged and increasing publishers’ profitability. 

Steve Kalu

Steve Kalu

Steve is a digital marketing expert with over 10 years of experience in the industry. He spent most of his time helping small businesses with search engine optimization and social media marketing to survive the competitive world of digital marketing. Steve holds a bachelor's degree in digital marketing from Kaunas university of technology (KTU).

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