The Ultimate Amazon DSP Quick Start Guide for 2023

November 4, 2022 Erika Garza

The Ultimate Amazon DSP Quick Start Guide for 2023

Demand-Side Platform is the Best-Kept Secret in Amazon Advertising! DSP Gives YOU, the Advertiser, the Power of Crucial First-Party Data

Selling on Amazon has been exploding in popularity and there are some very good reasons for it. The low initial investment catches the eye of entrepreneurs looking to add to their income flow. Then, there’s the hard-to-pass-up instant access to Amazon’s enormous customer base. 

According to Statista, in the six months prior to February 2022, direct visits to amounted to 5.8 billion. Amazon’s just released their third-quarter ad revenue totaling $9.55 billion and they reflect a continued upward trajectory. More significantly, year-over-year growth skyrocketed 25%.

Want to Find Out More About DSP Advertising from the Experts at CANOPY Management?

CANOPY’s Partners Achieve an Average 84% Profit Increase!

Amazon’s pay per click (or PPC) advertising is a must for Amazon sellers looking to compete in an increasingly crowded marketplace. To help, we’ve written a three-part series on the primary PPC ad types; Sponsored Products, Sponsored Brands, and Sponsored Display

This post however, is addressed to those Amazon sellers looking to take the next step UP. 

The reason you’d want (or need) to do that has a lot to do with data.

Taking Advantage of Valuable First-Party Data

Simply put, first-party data is information collected by the web property or app itself. For example, when a seller collects subscriber and buyer information from their Shopify store, that’s first-party data. Similarly, first-party data is the result when information is collected from Amazon shoppers.

Recently there have been many restrictions coming from Apple, Google, and other platforms focused on the sharing of data to third parties. However, when you gain access to that data from a voluntary opt-in through a property you control, you aren’t sharing anything with a third party. 

That’s perfectly fine!

This means that all tracking throughout properties you own or within your properties owned by the ad platform you’re using will still work.

Amazon is a huge collector of their users’ data. Whether you’ve put a book on your wishlist or were browsing for a new pair of (black) running shoes on Tuesday, they’re aware of it! You won’t find audience insights as powerful anywhere else.

So, what is this magic Amazon advertising platform?

What is Demand-Side Platform Advertising? 

DSP, (or demand-side-platform) is an algorithm-based programmatic ad platform that serves targeted messaging to ideal audiences at the perfect time.

It’s a great advertising platform for 2023 because of two very important things, unparalleled audience targeting capabilities and the exclusive creative assets exclusive to DSP that help your product or brand stand out from the crowd.

Demand-Side Platform uses algorithms to collect data from online users in order to show them ads that cater to their needs. The data that DSP collects focuses on demographics, interests, device usage, and online behavior. 

Then, an Amazon DSP campaign does the heavy lifting of identifying the optimum location and medium for your programmatic ads.

In the last year, access to the kind of data that helps marketers (and Amazon sellers) make these decisions has become increasingly rare.

DSP’s Audience Targeting Capabilities

Standing out on Amazon is a question of differentiating your product (and brand). To do that, Amazon sellers spend a lot of time tailoring their creative assets to reach increasingly sophisticated buyers. 

At the same time, Amazon sellers realize that with the rapid pace of eCommerce expansion, you cannot market to EVERYONE out there. That’s where audience targeting comes in. 

  • Amazon’s first-party data and DSP’s algorithmic capabilities combine to allow you to craft an advertising strategy that serves ads to increasingly relevant audiences of shoppers 
  • Use DSP to drill down in niches to target specific demographics with tactically precise campaigns 
  • Retargeting helps build customer loyalty 
  • Easily remarket to customers who viewed but didn’t purchase your products

Exclusive DSP Creatives

  • Set yourself apart from your competitors with custom creatives and carefully branded content that tell your brand story  
  • Increase your presence on prospective buyers’ path to purchase
  • YOU decide how and when customers first interact with your brand
  • DSP’s data transparency helps you understand your brand’s audiences and leads to more relevant creative ad campaigns
  • Remarket to those customers already considering your product with cutting-edge product video

What is a “Programmatic” Ad? 

Programmatic advertising refers to the automated process of purchasing and selling online ads. This tactic affords advertisers the ability to place ads across multiple channels with little human interaction. The ad buying process is automated and constantly adjusted in real time. 

Increasingly sophisticated algorithms automatically choose the best ad spaces, both on and off of Amazon.

The algorithm is constantly learning from Amazon customers’ behavior. And, as with any artificial intelligence program, the more you use it, the smarter it gets.

DSP Will Help You Grow Your eCommerce Business!

Amazon is uniquely focused on their customers’ experience. You should be too! 

DSP allows you to upgrade your prospective customers’ experience in several different ways:

  • Shoppers navigate to Amazon for a reason. Leverage the power of Amazon’s branding on your off-Amazon campaigns 
  • The marketing funnel requires a different approach depending on the stage the shopper is at. DSP creates access to hundreds of metrics designed to drive performance at each stage of the funnel
  • Amazon DSP is the only programmatic platform to report on Amazon conversions. Know, don’t guess on your metrics!

How Can You Take Advantage of Amazon DSP?

There are two options to put Amazon DSP advertising to work for you.

  1. Managed by Amazon: The managed-service option is designed for companies that want access to Amazon DSP inventory, with consultative service, or for those with limited programmatic advertising experience. The managed-service option typically requires a minimum spend of $50,000 USD (minimum may vary per country).
  2. (Managed) Self-service: Self-service customers are in full control of their campaigns. Self-service is a bit of a misnomer. This option can only be accessed through third-party agencies. Managed self-service provides users with an attractive blend of control, with ready access to the agency’s DSP expertise. It also allows for more flexibility in ad spend. That’s not a small thing!

One of the biggest benefits of CANOPY Management’s DSP Services is having the ability to combine the best of both options. Our DSP experts use algorithms to do a lot of the leg work. That creates enough bandwidth for CANOPY’s DSP Experts that they can be “hands-on,” 24/7 with our partners’ DSP advertising campaigns.

Inc 5000 award with a canopy management background

CANOPY Management’s Team of DSP Experts Can Help

CANOPY Management is a “full service” marketing agency for Amazon sellers, and our team consists of former Amazonians, multi-million dollar sellers, and award-winning experts. When you consider the ways in which CANOPY Management is able to help you grow your Amazon business, you’ll know why.

  • Strategic Growth Planning
  • Listing Copywriting Optimization
  • Listing Photography
  • Product Videography
  • Advertising Management
  • Customer Service
  • Demand Side Platform (Amazon DSP)
  • Amazon Posts
  • Full Service Management
  • Amazon Review Aggregation

Ready to Grow Your Amazon Business?

, , , ,