what is amazon dsp

What Is Amazon DSP and How Does It Increase Conversions?

insights |  | 5 min read

Amazon gets over 2 billion visitors each month. If you want to grow your brand and find new customers outside of Amazon, try the Amazon demand-side platform. But what is DSP Amazon? How can it help you, and why should you use it?

 

 

 


Highlights

  1. Amazon DSP allows brands to buy ads across a wide range of platforms, both on and off Amazon, unlike traditional sponsored ads.
  2. Offers various targeting options including behavioral, contextual, lifestyle, lookalike, and custom audiences.
  3. Supports diverse ad formats such as display, mobile app, interstitial, and video ads.
  4. DSP ads appear not only on Amazon sites like Amazon.com, Twitch, Audible, and Kindle but also on third-party websites.
  5. Provides detailed campaign analytics and audience insights to optimize ad performance.

 

Why We Wrote This?

We wrote this blog to help sellers create ad campaigns that target the right customers at the right time, thereby improving conversion rates. Additionally, sellers can benefit from the diverse ad formats supported by Amazon DSP, such as display ads, mobile app ads, and video ads. Furthermore, the retargeting capabilities of Amazon DSP help sellers maintain brand awareness and increase the likelihood of repeat purchases.

So, in this guide, we’ll discuss what is Amazon DSP, the targeting options it offers, where it appears, and what is Amazon DSP driver program.

 

What Is Amazon DSP?

 

what is dsp amazon

 

“DSP” means Demand Side Platform. It's advertising software that lets brands or agencies buy ads from many places at once.

This might sound confusing, but here’s the main idea: On Amazon, DSP ads differ from Amazon’s sponsored ads. DSP works very differently than Amazon Sponsored Products, Amazon Sponsored Brands, and Sponsored Display ads.

Sponsored ads show up in search results and on product pages on Amazon. But DSP ads can appear both on and off Amazon.com. Also, DSP ads offer more advanced targeting options than regular sponsored ads.

Sponsored ads are based on keywords and products. They can only target existing demand, like someone searching for kitchen towels.

 

What Kind of Targeting Options Does Amazon DSP Offer?

Amazon DSP allows brands to create detailed audiences for precise targeting.


Here's how you can choose shoppers:


Behavioral Targeting: This targets shoppers based on what they’ve done on Amazon in the last 30 days. For example, if a customer adds your or a competitor’s product to their cart, you can show them a specific ad.

Contextual Targeting: This targets people based on when and where they interact with an ad.

Lifestyle Targeting: This sorts customers into groups based on their age, location, purchase history, and life events. For example, you can target new parents or people who just moved.

Lookalike Audiences: This finds groups of shoppers similar to your current customers or any group you want to target.

Custom Audiences: This lets you use your data to create audiences. For example, you can upload the email addresses of past customers from your website in a privacy-safe way. Amazon will try to match this data to their records. If they succeed, you can target or exclude these customers and create lookalike audiences through Amazon DSP.

 

What Are The Benefits Of Amazon DSP?

Now you know what is an Amazon DSP, let’s move on to its benefits for the seller:

 

Precise Targeting Across Devices

  • DSP ads appear as display ads on mobile and desktop websites.
  • Mobile app and banner ads appear on iOS, Android, and Fire Tablet.
  • Mobile interstitial ads appear briefly inside apps during transitions and can be dismissed by clicking “close.”
  • Video ads are played on Amazon-owned properties like Fire TV, ensuring a brand-safe environment.

 

Dynamic Targeting

  • Uses data to decide where ads should appear, making ad placement highly effective.
  • Allows quick adjustments in ad strategy based on landscape changes.
  • Helps move ad placements, redirect spending on creatives, and target interested audiences flexibly.

 

Audience Insights and Analytics

  • Provides in-depth insights into Amazon PPC before, during, and after they run.
  • Access key performance metrics like total purchases, add-to-cart rate, and sold units.
  • Helps understand what drives results and what doesn't.

 

Retargeting

  • Helps retain existing customers, which is more cost-effective than acquiring new ones.
  • Builds brand awareness and educates customers about products.
  • Targets and retargets potential customers who have purchased or engaged with similar products in the category.

 

Where Amazon DSP Ads Appear?

 

what is an amazon dsp

 

DSP ads can appear in many places, including:

Amazon.com: You can set your DSP ads to show up on Amazon.com. They usually appear as displays on the side of the screen.


Amazon-Owned Sites: DSP is great for advertising on sites owned by Amazon, like:

  • Twitch: The popular live streaming platform.
  • Audible: The audio platform where you can run audio ads.
  • Kindle: Ads can also appear on Kindle devices.

Streaming TV: Your DSP ads can appear on:
  • Amazon FireTV
  • Amazon’s streaming service Freevee (formerly IMDBtv)
  • Other streaming platforms, like Paramount+, are available through agreements with Amazon.

 

Third-Party Websites: DSP ads can also appear on:
  • Amazon-owned websites like Goodreads
  • Thousands of other websites across the internet. For example, if you see an ad for an Amazon product on a non-Amazon website, that’s likely a DSP ad.

 

What Is An Amazon DSP Driver Program?

 

what is an amazon dsp driver

 

You might be wondering now, What is Amazon DSP driver?

An Amazon DSP driver program includes Amazon's logistics network, responsible for delivering packages directly to customers' doorsteps. Operating under Amazon's stringent guidelines, DSP drivers follow assigned routes using GPS technology and handheld devices provided by the company. They must uphold Amazon's standards for customer service, ensuring timely and secure deliveries while maintaining professionalism in their interactions.

 

Summary

Understanding what is Amazon DSP and leveraging its advanced features can transform your advertising strategy. With its precision targeting, diverse ad formats, comprehensive analytics, and effective retargeting capabilities, Amazon DSP empowers sellers to reach a broader audience, enhance customer engagement, and drive significant sales growth. By incorporating Amazon DSP into your marketing efforts, you can achieve your business goals.

 

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