In today’s competitive digital landscape, Amazon DSP (Demand-Side Platform) offers brands and sellers an edge in reaching and engaging customers within Amazon’s ecosystem and beyond. With Amazon DSP, brands can expand their reach through display, video, streaming TV, and audio ads on Amazon-owned sites and apps (such as amazon.com, FireTV, and IMDb) and premium third-party exchanges.
Unlike Sponsored Ads, Amazon DSP operates on a cost-per-thousand-impressions (CPM) model, prioritizing broad visibility and audience reach. This audience-driven approach enables brands to proactively target relevant customers based on Amazon’s rich insights, helping to build long-term brand awareness and engagement.
What is Amazon DSP?
Amazon DSP is a powerful programmatic advertising solution that allows sellers and brands to buy ads across Amazon’s owned and affiliated sites and apps. With DSP, advertisers access Amazon’s vast data and exclusive insights, creating particular, targeted ads that resonate with purchase-oriented audiences.
The platform is designed for brands that aim beyond immediate conversion metrics and establish ongoing customer relationships. By leveraging data on shopping behaviors, browsing patterns, and demographic insights, Amazon DSP facilitates brand exposure to relevant audiences throughout their online journey.
Key Advantages of Using Amazon DSP for Brands
1. Extended Reach Across Amazon and Beyond
Amazon DSP lets brands target audiences on Amazon’s properties and other top publishers, connecting with customers across channels and platforms. This capability is ideal for brands looking to grow their visibility and reach high-value customers who may not be actively searching for specific products but are open to brand engagement.
2. Unique Audience Insights
With exclusive access to Amazon’s customer data, Amazon DSP allows brands to reach purchase-ready audiences more effectively than most DSPs. By analyzing shopping behaviors and interests, brands can create ads tailored to align closely with customer needs, enhancing relevance and engagement.
3. Proactive, Demand-Generating Approach
Unlike Sponsored Ads that capture demand based on search intent, Amazon DSP takes a proactive approach. It targets customers based on profiles, behaviors, and demographics, reaching audiences who may not yet be actively shopping but fit the ideal customer profile. This demand-generative approach fosters brand awareness and interest earlier in the buyer’s journey.
4. Reaching Unique Audiences with DSP + Amazon Marketing Cloud (AMC)
With Amazon Marketing Cloud (AMC), DSP advertisers gain advanced insights into customer behaviors and purchase patterns. AMC’s secure and aggregated data allows advertisers to develop refined audience segments and optimize DSP campaigns based on real-time data. Combining AMC and DSP enables brands to engage high-value audiences across various devices and stages of the buying process.
Why Amazon DSP Matters for Full-Funnel Success
For brands already using Amazon Sponsored Ads, Amazon DSP offers a powerful opportunity to expand reach and achieve full-funnel marketing success. Brands leveraging both Sponsored Ads and DSP see a significant lift across crucial metrics, including ROAS (Return on Ad Spend) and conversion rates.
For instance, combining both strategies results in up to ~7% higher ROAS and ~55% increase in CVR (Conversion Rate), compared to running Sponsored Ads alone.
For those investing $30,000 to $100,000 per month, the combined strategy can lead to ~77% more ROAS and a ~69% boost in CVR, demonstrating that DSP expands the reach and deepens customer engagement with high-intent audiences across Amazon and other platforms.
Navigating the Costs and Complexity of DSP with Teikametrics
While Amazon DSP offers unmatched targeting and reach, managing independently can be costly and complex. Teikametrics, as a strategic Amazon partner, provides brands with a managed service option for DSP. This approach allows brands to access DSP’s powerful advertising capabilities at a lower cost, with expert guidance on ad placement, audience targeting, and campaign optimization.
Working with Teikametrics eliminates the upfront costs and extensive resources often required with self-serve DSP, helping brands achieve impactful results more efficiently. This partnership enables brands to access DSP’s potential and focus on maximizing ROAS and driving full-funnel success.
Making the Most of Amazon DSP for Long-Term Brand Growth
For brands aiming to move beyond immediate conversions and establish long-term customer relationships, Amazon DSP is an invaluable tool. DSP allows brands to connect with audiences on and beyond Amazon with powerful audience insights, proactive targeting capabilities, and full-funnel impact. By working with strategic partners like Teikametrics, brands can simplify the process, reduce costs, and drive results that fuel sustained growth in today’s competitive landscape.