Amazon DSP (formerly known as Amazon Advertising Platform) lets brands that sell on Amazon reach a larger number of interested shoppers than with search ads alone. While Amazon Amazon uses keyword-targeted search ads to increase the chance of conversions at the point of sale, Amazon DSP ads focus on high numbers of impressions on external sites to remind shoppers of products they were considering in the past to reroute them back to a sale.
Search and display are both advertising arms of Amazon advertising platform, and both services lead to product pages on Amazon’s retail site. Amazon search ads appear only on amazon.com, but Amazon display ads are served to shoppers outside of the Amazon site, as well as to mobile users on Android, Kindle Fire, and iOS platforms.
Amazon DSP Expands the Reach and Impact of Amazon Advertising Strategies
Amazon search ads do an excellent job of getting advertisements in front of interested buyers at the point of sale, but these customers don’t always complete the purchase. Amazon display ads use a variety of remarketing strategies to retarget these high intent shoppers outside of Amazon.
High intent shoppers are an important group to target because they are more likely to convert sales. These shoppers are looking at products with the intention to purchase, rather than just browsing or researching. Since they’ve already learned about the products they’re interested in, they are further along in the purchase-making decision process and more likely to click on the ad.
Amazon DSP Ads Re-Engage Shoppers Who Researched Your Brand
The remarketing strategies used by Amazon DSP track customer behaviors to intelligently display your ads on a variety of sites outside of amazon.com, keeping your brand on the top of the customer’s mind even when they’re not directly thinking about buying.
Pixel-Based Remarketing retargets customers who have visited your brand’s website, while Product Remarketing retargets shoppers who looked at your promoted products on Amazon but didn’t complete the sale. Amazon DSP also utilizes Similar Product Remarketing to reach potential customers who are browsing products similar to those sold by your brand.
The messaging of Amazon display ads can be dynamically optimized for different audiences and can use product images from Amazon, video clips, and different elements from Amazon product pages. Choosing display ads that show the Amazon star rating along with a favorable review appeals to those who value product research while adding an “Add to cart” button to the ad works well for targeting impulse buyers. Depending on your target demographic, display ads can be easily monitored and tailored for the highest impact.
Success Metrics for Amazon DSP Campaigns
How a company determines the success of Amazon DSP campaigns will vary from client to client and depend on what their goals are for the campaign, but effective display advertising should see improvements in the following areas:
- ROAS (Return on Ad Spend) is the ratio of revenue from the ad campaign compared to the cost of the campaign itself.
Increase in Earned Media (Organic Impressions)
- A rise in impressions means the ads are seen by more people, which should lead to increased clicks and engagement with the campaign. These metrics are often compared before and during the campaign.
Increase in Branded Search
- An uptick in searches that include the specific brand name or products during the campaign period.
Increase in Average Daily Sales
- This aids in determining ROAS and impacts revenue for the company. It is measured across the category for the brand’s entire portfolio and can be focused on brand sales and recognition rather than one single product or line.
Part of a Comprehensive Advertising Strategy
Search ads and display ads are each effective advertising strategies that work more effectively when used together than separately. By combining focused search ads with widespread display ads, Amazon Advertising and Amazon DSP complement each other’s strengths and cover each other’s weaknesses, creating a holistic solution for brands looking to reach the highest number of interested shoppers.
Editor’s Note: On September 5, 2018, Amazon rebranded its advertising platform. Amazon Marketing Services changed to Amazon Advertising and Amazon Advertising Platform changed to Amazon DSP, among other changes. This blog post was changed on October 10, 2018 to reflect those changes.