What Amazon DSP Has For You in 2021: Latest Updates

As Amazon's seller count approaches three million businesses, it is becoming increasingly difficult to compete. Amazon has become more of a challenge as the 2020s have pushed more people to online shopping. There is a lot of potential here, and knowing more about the Demand-Side Platform (DSP) is a big part of how you can maintain success. 

In this article, we will define a demand-side platform and how why you should use it. With this tool, you will create a more effective advertising platform. 

1. What is Amazon DSP?

What Amazon DSP Has For You in 2021: Latest Updates

The Amazon DSP is a platform that allows advertisers to automate their advertisement purchasing process. The program programmatically buys video, display, and audio ads. These ads can either be directly on Amazon or be located off-site. 

Off-site platforms are limited to Amazon-owned sites, like IMDb, Audible, Goodreads, TeachStreet, and Woot. Given that Amazon owns a wide variety of websites, this provides you with a powerful bit of advertising potential. For those needing to up their Amazon advertising game, this platform is a straightforward way to do that. 

The automated system cal also is linked back to multiple locations:

  • Your product's detail page
  • Your Amazon storefront
  • Other webpages

2. The Benefits of Using Demand-Side Advertising

Considering all of the Amazon advertising options, DSP is the only one available that tracks a buyer throughout the entirety of their process. Thie approach uses gathered data to understand customer behavior. 

If someone finds a product on Amazon and researches that product off-site,  that research process is fed into the DSP platform. It can also look back one year to understand your potential audience. With this information, Amazon can decide whether or not it is fruitful to show them an ad. 

This advertising strategy is known as retargeting, which pushes the shopper's engagement through an additional display of the item. This strategy can also relate to accessories for already-purchased products.

Before we get into retargeting, here are some other benefits to be aware of:

  • You can utilize performance metrics combined with analytics software to decide what works.

An Example of Retargeting in Action 

What Amazon DSP Has For You in 2021: Latest Updates

Imagine you were looking up the new Croods film on Blu-ray. Maybe you have a couple of weeks of researching the movie to see how it fares. Perhaps you look at some critical reviews. You might look to see if any scenes may not be appropriate for your kids. 

By visiting Amazon's page, you likely already have some of the data on your computer that allows Amazon to track your habits. All of those stops you take may cause you to end up seeing a display ad for this movie on another one of Amazon's sites (like IMDB). 

If you have already purchased the movie, retargeting now knows that you are in the market for kid's movies. Dreamworks, the movie's owner, may use this opportunity to target any of their other film to you. The same can apply to any product that has accessories:

  • People who just purchased a grill might need outdoor kitchen accessories.
  • Someone purchasing camping supplies may be looking for a camping stove.
  • Someone who just purchased a gaming console will probably want games for it.

DSP purchases the ads based on your preferences. This purchasing strategy ensures that you can adequately target people without putting as much effort into it. All of this is available in the latest version of this Amazon advertising tool.

3. Where Does The Amazon DSP Program Fit Into The Marketing Funnel?

What Amazon DSP Has For You in 2021: Latest Updates

While there are many variants to the marketing funnel, the most basic version contains four steps:

  1. Attention: The product (or brand) is something that the buyer might need.
  2. Interest: The buyer has expressed interest in the item, taking steps to find more about it.
  3. Desire: The buyer has expressed a desire to buy your product. 
  4. Action: The buyer has purchased your item or brand. 

Given that DSC is a type of Amazon PPC Software, this can be an integral part of your marketing funnel. The DSP comes in heavily during step two. Step two is the interest step, where the buyer has begun to perform some research on your product. 

During that research, your retargeting efforts may bring them to off-site locations owned by Amazon. Prospective buyers will also compare other products by searching for them. Going back to our earlier example, I searched "kids movies." Given the month, this is the top sponsored ad that I received:

What Amazon DSP Has For You in 2021: Latest Updates

Amazon has this ad with February in mind. Scrolling down to the bottom reveals the movie I expressed interest in most recently. Because this is a new blip in my history, purchasing large ads may not be helpful. 

Tips To Help Your Funnel 

  • Have a defined goal before creating the ad: If you want to increase sales of a particular product, focus on the benefits of that product for the user. 
  • Base the metrics you focus on on your overall goal for the ad. If your goal is to increase brand awareness, look at the new audience member. Just because you have a weak ROAS (Return On Ad Spend) doesn't mean your ad is a total failure.
  • Have a unique brand that sticks out. Creating awareness of what you offer is key to keeping return customers. 
  • See what your competition is doing, and always ask yourself how you can improve upon that strategy. 

4. Amazon DSP Ad Types

Before you look into this Amazon PPC software, be aware that you need to have an active Amazon Advertising account. You also need to be making minimum earnings requirements of 35 thousand. Once you meet those requirements, you have access to all of their ad types:

  • Display
  • Video
  • Audio 

Let's dig into the advantages of each:

Display Advertisement

Display advertising is a general term that refers to advertising on display. Technically, that means you could put video ads as part of this category, but display ads typically fall into two different areas:

  • Banner ads
  • Intersite Ads

Banner ads are advertisements that are in some block on a website. They are typically above, below, or to the side of the website's focus. Amazon-sponsored ads are an excellent example of this in action. 

What Amazon DSP Has For You in 2021: Latest Updates

Intersite ads appear before you get to the website you are going to. They are less common given how invasive they can be. It isn't pleasing to have an advertisement pop up instead of your website. 

Display advertisements are most effective at retargeting, as it is a consistent reminder of what the buyer was looking at earlier. The objective would be to get the prospective buyer to click on the ad after finding sufficient reason after looking at the product. 

Video Ads 

Advertisements that appear on a video have known by three different varieties: 

  • Pre-roll: before the video,
  • Post-roll: after the video.
  • Mid-roll: During the video: 

The most common video ads give you anywhere between 15 to 30 seconds to get your point across. Most people are visual learners, so this offers ample opportunity for you to engage the viewer. 

Amazon Advertising has a service called over-the-top (OTT) video ads. In combination with a DSP service, those video ads can display in a programmable format. All of these work across many Amazon affiliate websites. 

Audio Advertisement

With the knowledge of Amazon Music and Audbible.com, Amazon has many audio-based ad platforms. These ads can be programmed to play during critical moments of the buyer's journey combined with the DSP-centric data-advertising. 

Amazon's Alexa devices are also a common source of potential advertising. By targeting those that use Amazon as their platform for audio, you hit an audience with a high potential to browse your items. With only about 30% of the population paying for the ad-free version of music services, there's a lot of potential here. 

5. Amazon DSP Updates: Increased Usability and Flexibility

In this section, we will be digging into the most recent Amazon DSP updates. DSP is a heavily support platform that has gone through several updates over the past several months.

The New Video Creative Builder 

Many businesses lack the technical expertise needed to create video ads. Learning new Adobe Premiere Pro skills would help in the long run, but the investment costs are high. 

Amazon has addressed this concern through the Video Creative Builder, which has a variety of customizable templates. They also include the following features:

  • Simple to overlay text 
  • Amazon co-branding (inserting your logos)
  • Support for square-shaped video 

This newly available system works well to put yourself on-par with other companies that can afford in-house designers. It works to provide you with an additional resource that combines seamlessly with DSP to target the right audience. 

Oracle Data Cloud (ODC) Custom Predicts Support

"Predicts" utilizes trending topics to allow brands to take advantage of targeting effective keywords. Combining this tool with a keyword ranking tracker will enable you to use predictive timing on advertising to see the best times to rank and how well you rank.

With a dynamic focus on keywords, you won't waste your time targeting less useful areas. Programmatic advertising utilizing the correct data is responsive to hitting the right keywords at the right time. 

Double Verify

Double Verify's latest release is "custom contextual" targeting of your products. The custom contextual field changes your advertisement based on the page's content. As an aspect of DSP, your prospective buyer's ad will vary depending on what they look up later.

For example, if they start to look up reviews of your product with a focus on reliability, contextual advertising could do the following:

  1. DSP sees buyer access information on your hair care product.
  2. An Amazon affiliate site on product reviews is accessed after.
  3. Customer advertisement displays satisfied customer review on a banner.
  4. Buyer accesses another Amazon-owned website with instructions on how to handle dry hair.
  5. Additional display ad appears on video focusing on your product's ability to handle dry hair.

The retargeting aspect that addresses the customer's need focuses on making Double Verify's custom contextual aspect incredibly useful.

Additional Bid Strategies 

Amazon Demand-Side Platform allows you to change how your automated advertising changes depending on your priorities. For example, your highest priority could be to spend your full advertising budget. This focus allows you to focus on your dollars going to the right advertising platforms within budget.

On the other hand, you may prioritize performance, which will possibly cost a bit outside of the budget. While everyone wants the best possible performance, bidding high may not be available for some budgets. 

6. New Targeting Options

While we've already discussed retargeting, This Amazon PPC Software to go beyond this. Below are some potential targeting options you have:

  • Demographics: The most common form of targetting includes those who hit age, gender, income, and location-based classifications. These can provide you a robust base from which to work when selecting targets. 
  • In-market: People who look at similar products are also good targets for your advertisement. If someone is looking for weighted blankets and you happen to sell them, you could target people who look at your competitors. 
  • Lifestyle: Are they having a baby, starting college, or just got married? People who are in different stages of their life have unique needs depending on the location. 
  • Third-party data: Amazon's DSP system also utilizes data from other websites. If you have a D2C (direct to consumer) website, you can install features on your website to track data that directs them to products on your Amazon storefront. 

You may find that this Amazon PPC Software may expand outside of your standard potential buyer. Through utilizing the correct data, DSP's uses are nearly limitless. With some creative thinking, you may be able to target specific data. 

7. Key Takeaways

The usage of Amazon's Demand-Side Platform provides you with great creative control of your advertising option. This Amazon PPC Software is an excellent way for you to take innovative approaches to programmatic advertising. With the right data, you will be able to target people with greater effectiveness. 

Regardless of how your marketing funnel looks, DSP starts from almost the beginning. As prospective buyers look up more information on you and your brand, DSP's many features contribute to your offerings' consistent reminder. Those offerings can also be displayed given lifestyles, third-party data, and their prior Amazon browsing history. 

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