Learn how to leverage Amazon's demand-side platform to engage your customers wherever they are online.
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The following excerpt is from Timothy P. Seward's book Ultimate Guide to Amazon Advertising. Buy it now on Amazon | Barnes & Noble | IndieBound | Apple Books or click here to buy it direct from us and SAVE 60% in this book if you use code MARKET2021 by 04/24/21.
One of the most important ways to expand your advertising reach on and off Amazon is to participate in Amazon's demand-side platform, Amazon DSP. With Amazon DSP, brands can target customers in real time while surfing the Internet. This approach enables brands to reach customers on and off Amazon through programmatic display advertising.
Through Amazon DSP, Amazon can work with third-party websites to serve ads over the Internet. Because these ads can run on Amazon and other websites, brands can expand their reach exponentially through Amazon DSP. These ads can appear in the following placements: desktop and mobile web display ads, mobile banner ads, mobile interstitial ads, and video ads.
This option might be a great opportunity for you if your brand is well known and you value the reach of your ads over the initial ROI. This doesn't mean you won't see a return from your Amazon DSP advertising efforts, but your expectations should be vastly different from what you expect from your search advertising. Search advertising aims to increase awareness and sales of people who are already searching for products like yours on Amazon and are therefore likely to convert. DSP enables you to reach customers throughout the buying cycle using a variety of retargeting and programmatic display methods. You may be targeting a customer who is very early in the research process, who has left a shopping cart on your website, or who belongs to a specific demographic that is of interest to you and your brand. An alignment based on demographics or interests is more suitable for a brand awareness game.
Many companies use DSP in two main ways: programmatic display ads and retargeting ads. Programmatic display ads enable brands to reach larger audiences both on and off Amazon by targeting specific audiences and segments with real-time bidding. Brands can also use DSP to re-engage website / page visitors, cart abandoners and previous buyers by placing pixels on their own websites to track customers. Amazon Advertising can also track and engage customers based on the ASINs they viewed and / or purchased on Amazon.
Now let's take a closer look at programmatic display and retargeting of ads in DSP.
Related Topics: How Amazon Prime Day Can Bring Prime Sales To Your Business
Programmatic display strategies
With Amazon DSP, advertisers can address various target groups on and outside of Amazon via exclusive Amazon websites (Amazon and IMDB), Amazon Publisher Services and open exchanges such as AppNexus, Rubicon and OpenX. Using the first-party data from Amazon, you can create target groups that provide insights into the purchasing behavior of Amazon-owned and operated properties.
You can also address specific customer segments. For example, if your brand sells high quality wallets, you might want to target the fashionista lifestyle segment or the health, beauty, and fashion market segment. The types of segments available for targeting include:
In the market: Customers browsing a specific market (e.g. parents buying baby products) Lifestyle: Customers grouped into broad categories based on their interests (e.g. animal lovers) Demographic: Customers who are based on their Characteristics fall into certain categories (e.g. age, gender, income, etc.)
You can overlay multiple segments to create a unique targeting approach. Within the DSP interface, you can also view the estimated reach of each segment, which is defined as the estimated number of impressions per day.
Related: 5 Amazon Ad Settings That You Shouldn't Ignore
With DSP, you can also retarget customers who have visited your website or viewed your products on Amazon. You can reach and reintegrate existing customers through pixel and ASIN retargeting. Pixel retargeting allows you to track your customers with pixels placed on your brand's website and linked to your DSP account. You can then follow customers on and off Amazon to show them ads for your product. ASIN retargeting is similar to pixel retargeting in that you can target existing customers outside of Amazon. However, instead of tracking them via a pixel on your website, track them from the first time you display your product detail page on Amazon.
There are several ways to leverage DSP's retargeting capabilities to increase brand awareness and increase sales. Some of the most common retargeting strategies are:
Targeting of cart abandoners: Re-engage website visitors who added a product to their cart, but did not purchase the product within a certain period of time. Re-engage previous website visitors to drive brand equity and influence them with calls-to-action. Highlighting New Product Launches: Targeting previous buyers or website visitors to announce a new product they may also be interested in is being purchased at the end of its life and reminding them that they will need to buy again soon.
Amazon DSP data and supply sources
Amazon uses its first party data to target specific consumers based on their shopping behavior and interests. You can grow this data by adding any data you have about your existing customers through email lists.
There are three main sources of supply Amazon can choose from when setting up your ads on DSP. You can place your ads on websites operated and operated by Amazon, Amazon Publisher Services and / or open exchanges. The websites operated and operated by Amazon include Amazon and IMDb. Amazon Publisher Services consists of direct publisher inventory for highly visible impressions. Open exchanges are real-time bidding exchanges, including sources such as AppNexus, Rubicon, and OpenX.
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