Amazon DSP vs Sponsored Display Ads: An in-Depth Comparison
You’re an Amazon seller looking to expand your advertising reach, and you’ve heard about Amazon DSP and Sponsored Display. But what’s the difference, and which one is right for your business? Don’t worry, we’ve got you covered. In this post, we’ll dive into the nitty gritty of both platforms — how they work, pricing, targeting options, and more. We’ll help you understand the pros and cons so you can determine which one best fits your goals and budget. Whether you’re just starting out with Amazon ads or looking to scale your existing efforts, you’ll learn everything you need to make an informed decision between Amazon DSP and Sponsored Display. So buckle up and get ready to boost your advertising game as we compare these two powerful options side-by-side.
What Is Amazon DSP?
Amazon DSP, or Amazon Demand-Side Platform, is Amazon’s own advertising demand-side platform. It allows advertisers and agencies to programmatically buy display ads on Amazon properties like Amazon.com, IMDb, and Goodreads, as well as off-Amazon sites and apps.
Self-Service Access
Unlike Sponsored Ads which require you to manually create and optimize each ad campaign, Amazon DSP provides a self-service platform where you can easily set up and manage your display advertising campaigns. You have access to powerful tools for targeting, bidding, reporting, and optimization. This allows you to scale your display advertising on Amazon and beyond.
Advanced Targeting Options
Amazon DSP offers robust targeting options based on shopping behaviors, browsing patterns and demographic information. You can target audiences based on their interests, income, location, and more. You can also target users who have viewed or purchased certain products. These advanced targeting capabilities allow you to reach audiences that are most likely to engage with your ads.
Real-Time Bidding
Amazon DSP uses real-time bidding to determine which ads are shown to users. Your ads are entered into an automated auction where Amazon DSP evaluates your targeting and bidding criteria to determine if your ad should be shown. If your ad wins the auction and is displayed, you only pay if a user clicks the ad. Real-time bidding helps maximize the effectiveness of your display ads.
Reporting and Optimization
Amazon DSP provides a suite of reporting tools to track how your campaigns and ads are performing. You get access to metrics like impressions, clicks, click-through rates, and costs. You can then use these insights to optimize your campaigns by adjusting Amazon campaign bids, audiences, creatives and more. Regular optimization helps improve your results over time.
In summary, Amazon DSP is a powerful platform for advertisers looking to scale their display advertising efforts on Amazon and other sites. With advanced targeting, real-time bidding, and robust reporting, Amazon DSP can help you reach your key audiences and drive better results from your display campaigns.
Here is a detailed video guide on Amazon DSP
What Are Amazon Sponsored Display Ads?
Appear on Amazon.com
Amazon Sponsored Display Ads appear on Amazon.com, specifically on product detail pages and search results pages. These ads contain images, text, and links to promote your products or brand to shoppers researching and browsing products on Amazon. Unlike Sponsored Products ads which appear in the search results and are text-only, Sponsored Display Ads are visually impactful using eye-catching images and logos.
Target shoppers across the purchase journey
Sponsored Display Ads allow you to reach and influence shoppers at multiple points in their purchase journey on Amazon. You can target shoppers researching products in a specific category, viewing products from competitors, or browsing products that are related or complementary to items they’ve recently viewed.
Flexible budget and targeting options
You have control and flexibility over your Sponsored Display Ads campaign. You set a daily budget and choose how much you want to spend on each ad. You can target ads to show for selected products, brands, categories or interests. You can also target shoppers based on their purchase history or perceived interests.
Performance metrics to optimize your campaigns
With Sponsored Display Ads, you receive performance metrics and reports to see how your ads are performing. You can track impressions, clicks, click-through rates and costs to determine what’s working and not working. Make changes to your targeting, ads, keywords or bids to improve performance over time. Continually optimizing your campaigns based on performance is key to success with Sponsored Display Ads.
Sponsored Display Ads provide an engaging way to reach shoppers researching products on Amazon.com and promote your brand and products to influence their purchasing decisions. When leveraged strategically, Sponsored Display Ads can be an effective tool in your advertising toolkit to drive brand awareness and product sales on Amazon.
Comparing Amazon DSP and Sponsored Display Ads
Reach and Targeting
With Amazon DSP, you have access to audiences across Amazon sites and apps as well as other publisher sites and apps. You can target shoppers based on their browsing and purchase behavior. Sponsored Display ads are limited to Amazon owned and operated sites. They offer basic targeting like keywords, product categories and interests.
Bidding and Budgeting
Amazon DSP uses a bidding model based on cost per thousand impressions (CPM) while Sponsored Display Ads use a cost per click (CPC) model. With DSP, you set a daily Amazon ads budget and your ads will run until that budget is spent. Sponsored Display Ads charge you only when someone clicks your ad. DSP tends to cost more but offers more advanced features.
Reporting and Optimization
Amazon DSP provides robust reporting and optimization features. You’ll get metrics like impressions, clicks, cost, CTR, CPM, and conversion data. You can then use these insights to optimize your campaigns. Sponsored Display Ads offer basic reporting. You can see clicks, impressions, CTR and keyword performance. The optimization options are limited.
Best Practices and Recommendations
For the best results with Amazon DSP, target audiences that are most likely to convert, set a reasonable daily budget, use dynamic ad creatives, and continuously optimize based on performance data. With Sponsored Display Ads, choose highly relevant and specific keywords, write compelling ad copy, use eye-catching images, and experiment with different bids and budgets to maximize traffic within your budget.
Do You Need an Amazon DSP Agency?
Amazon DSP can be complex with a steep learning curve. An Amazon DSP ad consultants that specializes in Amazon advertising can help you get the most out of your DSP campaigns. They have experience optimizing ad spend and conversions on Amazon. For Sponsored Display Ads, you may be able to manage basic campaigns in-house but an agency can still help strategize and improve performance over time.
In summary, Amazon DSP and Sponsored Display Ads are two different advertising options on Amazon with varying capabilities, costs, and complexity. Choose the solution that best fits your needs, resources, and business goals. Or, use both together as part of a comprehensive Amazon marketing strategy.
Conclusion
You’ve just scratched the surface of the key differences between Amazon DSP and Sponsored Display. While they have their similarities, understanding how each platform shines in certain areas can help you maximize your ad budget and reach. Weigh your goals, target audience, and campaign type to choose the right one — or use both. Don’t be afraid to test different options and see what delivers the best performance for your needs. With a solid testing and optimization strategy, you can make the most of these powerful Amazon advertising options. Hopefully this guide gave you a helpful overview so you can dive in confidently. Now it’s time to take action and start crafting effective display and video ad campaigns.
