How to Start a DSP with Amazon: Step-by-Step Guide

Imagine putting your brand in front of millions. But you’re not limited to showing ads only when shoppers search. With Amazon’s Demand-Side Platform (DSP), your ads can appear while they browse, watch videos, or read product pages. This means you reach potential customers even before they start searching.

Amazon DSP helps you target the right audience beyond standard Amazon ads. Whether they’re shopping on Amazon or visiting other websites, your brand stays visible. 

This guide will break down everything you need to know from setting up your account to improving your campaign performance. Stick around to see how Amazon DSP can work for you.

What is Amazon DSP?

Amazon’s DSP lets advertisers buy ads automatically. These ads don’t just appear on Amazon but also across other websites. At first, it was mainly for big brands with large budgets. 

Now, Amazon has made it easier for smaller businesses to use its targeting features and expand their reach.

How It Works

Amazon’s DSP uses its massive data pool to target shoppers. You can reach people based on their browsing and purchase history. Since it relies on data directly from Amazon users, ads are highly focused.

For example, you can show ads to shoppers who recently checked out certain product categories. Even if they aren’t searching, your brand stays visible. You can also target based on lifestyle or buying habits.

Why Amazon DSP Matters

It goes beyond regular Amazon ads like sponsored products. Your ads can appear on websites, apps, and even streaming services.

Different ad formats, such as video and display ads, help build brand awareness. A clothing brand, for example, can show video ads to people interested in fashion.

It also gives you full control over your budget. You can fine-tune campaigns to get the best return on investment.

Also Read: How Machine Learning is Changing the Amazon Marketplace

Benefits of Using Amazon DSP

Imagine reaching potential customers wherever they spend time online, not just on Amazon. That’s the main advantage of Amazon DSP. It goes beyond regular Amazon ads, helping you build brand awareness and boost sales with precise targeting.

You can also connect with shoppers who aren’t actively searching for your products. This means your brand stays in front of the right audience at the right time. Now, let’s go through the key benefits of this advertising platform below:

Expanded Reach

Amazon DSP helps brands reach shoppers beyond Amazon. Ads can appear on external websites and apps, increasing brand visibility. This is useful for companies looking to expand their audience or launch new products. A cookware brand, for example, can advertise on food blogs and recipe apps to attract potential buyers.

Advanced Targeting

Using Amazon’s data, DSP targets shoppers based on browsing and buying habits. A sports apparel brand can reach users interested in fitness or sports streaming. 

You can also target by lifestyle and past purchases. This makes ads more relevant, ensuring they connect with the right audience at the right time.

Diverse Ad Formats

DSP supports multiple ad formats, including display, video, and audio. This allows brands to design campaigns for different platforms. 

For example, video ads on Twitch grab attention, while display ads on news sites reach specific demographics. Using different formats helps brands create engaging and well-rounded advertising campaigns.

Measurable Results

Amazon DSP offers detailed reports to track ad performance. Brands can see which placements and strategies work best. Data on impressions, clicks, and conversions helps businesses refine campaigns for better results. These insights help advertisers fine-tune their approach to get the best return on investment.

Also Read: The impact of digital marketing on e-commerce

How to Start an Amazon DSP? (Requirements for Starting)

Demand-Side Platforms (DSPs) give advertisers a way to buy ads automatically across digital channels. But Amazon DSP stands out by using Amazon’s data to help brands connect with the right audience. 

It’s a great choice for those wanting to go beyond standard Amazon ads. Here’s what you need to get started.

Assess Eligibility and Goals

Check if Amazon DSP fits your budget and marketing strategy. It works best for brands with solid sales and advertising plans. 

Set clear goals, like increasing brand awareness or boosting sales outside Amazon. If you’re just starting out, a Sponsored Products campaign might be a better first step.

Select a Management Style

Decide between managed-service or self-service. With managed-service, Amazon’s team runs the campaigns, saving you time. Self-service gives you full control but requires marketing expertise.

 If you have a dedicated team, self-service can be the better choice. Otherwise, managed-service helps handle the workload.

Establish an Amazon Advertising Account

Make sure you have an active Amazon Advertising account. This account is the control center for your DSP campaigns. It stores performance reports and campaign data. Setting it up correctly prevents issues later and ensures smooth campaign management.

Define Your Target Audience Precisely

Use Amazon’s insights to refine your audience targeting. Focus on demographics, purchase history, and browsing habits. For example, a brand selling organic baby food can target parents who shop for baby products or organic items. The better your targeting, the more relevant your ads become.

Design Engaging Ad Creatives

Create ads that grab attention and fit your audience. Choose between display, video, or other formats for maximum impact. A video ad can tell a strong brand story, while a display ad can drive quick clicks. Testing different creatives helps find what works best.

Allocate Budget and Bidding Strategy

Set a budget and choose a bidding method that matches your goals. CPC (cost-per-click) works well for driving website traffic. CPM (cost-per-thousand impressions) is better for boosting brand awareness. Pick the right approach based on what you want to achieve.

Launch, Monitor, and Optimize

Once your campaign is live, track performance closely. Keep an eye on impressions, clicks, and conversions. Regular analysis helps fine-tune strategies for better results. Making quick adjustments ensures your ads stay effective and deliver the best return on investment.

Who Can Use Amazon DSP?

Amazon DSP gives brands a way to reach more customers. It works beyond the usual Amazon marketplace. It targets users based on what they browse and buy. This makes it a strong tool for advertisers. Knowing who can use it well is key.

Brands that know their audience benefit the most. Companies with many products can split their audiences. They can show ads that fit each group. Agencies with multiple clients can also use DSP. It helps them handle campaigns better. It also keeps ad spending under control.

Businesses wanting more brand awareness can use DSP. It also helps those selling outside Amazon. A clothing retailer, for example, can show video ads on streaming sites. This reaches shoppers interested in similar items. 

Companies wanting full control over ad spending also benefit. DSP allows detailed tracking of campaigns. This helps measure ROI and adjust strategies.

Is Amazon DSP the Right Business for You?

Figuring out if Amazon DSP suits your business takes careful thought. You need to look at your goals and resources. The platform offers strong targeting, but it’s not for everyone. You should check if your business is ready for advanced advertising.

Established brands with a clear customer base get the best results. If you want to move beyond sponsored ads, DSP can help. It works well for brand awareness on a larger scale. Having a budget for programmatic ads is also key. If detailed analytics matter to you, DSP could be a good choice.

Smaller businesses with fewer resources may need other options. If you’re new to Amazon, sponsored ads might be better. Optimizing product listings should come first. Running DSP campaigns takes skill. 

If your team lacks experience, working with an Amazon DSP agency can help. They offer the right knowledge to boost campaign success. Many brands rely on an Amazon DSP agency to handle strategy and execution. In the end, it all depends on your business needs.

FAQs

How does Amazon DSP compare to Google Ads for targeting?

Amazon DSP targets based on actual shopping behavior. Google Ads focuses on search intent. Amazon’s data provides precise audience insights, making it ideal for brands wanting to retarget potential buyers.

Can Amazon DSP help drive traffic to my website, not just Amazon?

Yes, Amazon DSP allows off-Amazon advertising. Brands can direct traffic to their websites, boosting sales outside Amazon. This is great for businesses looking to expand beyond marketplace limitations.

What’s the minimum budget needed for Amazon DSP campaigns?

Amazon DSP’s managed-service requires a high budget, often $35K+. Self-service has flexible spending, making it suitable for smaller brands wanting to test without huge upfront costs.

How does Amazon DSP retarget shoppers who didn’t complete a purchase?

It tracks browsing and purchase intent. DSP retargets users with ads across websites, reminding them of the products they viewed, increasing the chances of conversions over time.

Should I hire an Amazon DSP agency or manage campaigns myself?

If you lack expertise, an Amazon DSP agency helps with strategy and optimization. They handle bidding, creatives, and reporting, ensuring better ROI than managing campaigns without experience.

Conclusion

Handling Amazon DSP might feel tricky at first. But its ability to boost your brand’s reach is huge. The goal is simply to get your brand in front of the right people. This works both on and off Amazon. Strong data insights make targeting even sharper.

It helps expand reach, improve targeting, and offer different ad formats. Detailed tracking also makes campaign adjustments easier. These features give advertisers a solid way to grow.

Managing campaigns yourself gives full control. But working with an Amazon DSP agency can make things smoother. The key is to match your strategy with clear goals. Smart planning leads to better results.