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Grow Your Business with Amazon DSP

September 13, 2023
Xmars Team

Looking for ways to amplify your Amazon ad strategy? If you’ve already harnessed the full potential of Amazon’s sponsored ads, it’s time to set your sights on Amazon DSP.

Amazon DSP is the company’s demand-side platform that provides:

  • Advanced Ad Placement Control: Choose where your ads will be seen whether on Amazon or other platforms.
  • Pinpoint Targeting: Identify and reach specific shopper segments.
  • Extensive Ad Network: Feature your ads on platforms like third-party websites and streaming services.
  • Funnel Targeting: Engage shoppers at different stages of the buying process.

Amazon’s vast amount of data is unparalleled, capturing insights from views to purchase intents. With DSP, you can reach those customers even beyond Amazon. Imagine the impact of showing your ad to someone who recently viewed your product every time they stream their favorite show.

Deciphering DSP

“DSP” translates to Demand Side Platform. This software enables the simultaneous purchase of ads across multiple platforms. But remember, DSP isn’t just another variant of Amazon's sponsored ads. It’s fundamentally different.

While sponsored ads are pinned to search results or product pages on Amazon, DSP ads have a broader spectrum. They can appear both on Amazon and outside it. Moreover, while sponsored ads cater to existing demand (think keyword-based searches), DSP targets potential customers based on specific traits or behaviors.

DSP’s Targeting Capabilities

The beauty of DSP lies in its targeting sophistication:

  • Behavioral Insights: Why guess when you can know? Target based on verifiable actions users take on Amazon. These targets users based on their recent activities on Amazon within the preceding month. Say a user places your item or a competitor's item in their shopping cart, you can craft a bespoke ad for that shopper.
  • Lifestyle Targeting: Engage users based on tangible life events and inherent preferences. Here, buyers are classified into specific categories based on attributes like their age, geographical positioning, buying trends, and significant milestones in their life.
  • Contextual Alignment: Pitch your product when and where it resonates most. This method pinpoints users depending on the timing or the platform in which they interact with an ad.
  • Lookalike Audiences: Use profiles of your existing customer base to find and engage similar potential buyers. Lookalike Audiences identifies clusters of users that resonate with the characteristics of your existing clientele or any other consumer segment you aim to approach.
  • Custom Audiences: With DSP, your own data isn’t idle. It’s integrated, shaping a refined audience, always respecting user privacy. For example, you can securely upload the contact details of former buyers from your direct-to-consumer platform all in a privacy safe way.  

Amazon will then try to correlate this input with their existing database. When a match is identified, it opens avenues to either zero in on these consumers directly via Amazon's DSP or to architect lookalike audiences.

How Can You Benefit from DSP Ads?

Whether you’re a well-established brand on Amazon or just starting out, DSP provides a comprehensive toolkit. It not only captures those ready to purchase but also kindles interest in those unaware of your brand.

DSP ads provide the opportunity to engage potential buyers at every stage of the buying journey, ranging from initial brand discovery to consideration, and finally, acquisition. For instance, by running your DSP ads on video streaming platforms, you have the potential to captivate audiences who might not currently have your brand on their radar. Furthermore, a DSP banner on Amazon.com or a re-engagement ad on an external site can nudge shoppers towards completing a purchase.

DSP and Amazon Marketing Cloud: The Dynamic Duo

Amazon DSP and Amazon Marketing Cloud (AMC) are two sides of the same coin. AMC, an analytical powerhouse, refines the DSP experience, enabling sellers to pinpoint their audience with surgical precision.

When you integrate the raw power of DSP’s targeted ad placements with the analytical depths of AMC, the magic truly happens:

  • Granular Audience Segmentation: AMC enables brands to dive deep into their data, allowing for the identification of nuanced customer segments. Once these segments are identified, DSP can then target these specific groups with tailor-made ads, ensuring that the right audience sees the most relevant content.
  • Feedback Loop of Refinement: As DSP campaigns run, they generate a vast amount of performance data. This data is ingested back into AMC, where it's analyzed to uncover what's working and what isn’t. These insights can then inform subsequent DSP campaigns, creating a feedback loop that continually refines and improves ad performance.
  • Holistic Customer Journeys: By using AMC's analytical capabilities, brands can map out detailed customer journeys. With this map in hand, DSP can then optimize ad placements and campaigns to target customers more effectively, ensuring that each interaction is relevant and timely, leading to increased engagement and conversions.

Embarking on the DSP Journey with Xmars

If you want to advertise more effectively on Amazon and reach your audience even outside of it, Amazon DSP is the way to go. By combining this with the insights from AMC, you get an unparalleled, precise picture of where and how to advertise. Remember, it's about making smarter advertising decisions that resonate with your audience. If you're looking for help, Xmars offers tools to make this process even simpler and more effective. Don't miss out on the chance to improve your advertising game on Amazon!  

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