How do I become a DSP

Amazon DSPRonny Marx2020-07-06T11: 18: 20 + 02: 00

The abbreviation "DSP" stands for "Demand Side Platform“And is therefore part of programmatic advertising. Means Amazon DSP it is possible to reach potential buyers much earlier in their customer journey and lead them to a certain brand or a specific product. The real “super power” of the Amazon DSP, however, is to use millions of customer accounts specifically for advertising outside of the marketplace. Every "non-seller" (e.g. insurance companies, energy suppliers, fintechs, banks, IT consultants, etc.) can use Amazon customer data to advertise their services.

The focus of the Amazon DSP is on display and multimedia campaigns on the Amazon website as well as in display networks outside of Amazon. The fact that it is possible to place advertising outside of Amazon represents the greatest difference to “classic” Amazon advertising in the area of ​​performance marketing. Furthermore, the Demand Side Platform (DSP) differs from Amazon Advertising in two essential points Console. Advertisements in the Advertising Console are billed according to the Pay per Click (PPC) model. The advertiser only incurs costs once the customer has clicked on the ad. At Amazon DSP, billing is based on the cost per mille principle (also known as a thousand contact price or TKP). There are costs for every 1,000 advertisements / impressions, regardless of clicks on the advertisements. These different billing models require different approaches to budget and campaign planning.

Display of the advertising campaigns on Amazon DSP

Display on Amazon sites and apps (e.g. Amazon.de or Amazon app)

Websites operated by Amazon (e.g. IMDb and Audible) and external websites

Third-party apps through the integration of Amazon DSP with leading open exchanges

Restructuring of Amazon Marketing Services and Amazon Advertising Platform

Before the restructuring of Amazon Marketing Services (AMS) and the Amazon Advertising Platform (AAP), these advertising opportunities were managed under the Amazon Media Group (AMG). With the switch from AMG to Amazon Advertising, the advertising measures were also renamed. The Amazon Marketing Services are controlled via the Advertising Console, the Amazon Advertising Platform is controlled via the Amazon DSP console. All advertising activities can now be controlled centrally via the Amazon advertising website.

The use of the Amazon DSP is possible for sellers on Amazon as well as for companies that do not offer their products on Amazon. With Amazon DSP, sellers or vendors can expand their reach far beyond the possibilities of sponsored product campaigns and companies that do not offer products on Amazon benefit from the unique USP “Amazon Audiences” or Amazon 1st party audience data.

“Amazon Audiences” are Amazon customers (Amazon accounts) who are defined by their purchase, search and activity history using precise and detailed information. This information is of course GDPR compliant. Thus, advertising companies do not take any risks with regard to data protection violations.

Amazon DSP Managed and Self Service

Amazon distinguishes between two different services as to how this advertising option can be used. Interested parties have the opportunity to Amazon Managed Service to use. With this full service from Amazon, Amazon employees take over the complete creation and control of the DSP campaigns. This service can be booked from Amazon with an advertising budget of EUR 10,000 per month or more. From this advertising budget, Amazon calculates a fee as a percentage of the implemented advertising budget.

In the Enterprise Self Service Using DSP, companies / agencies can create and control the campaigns themselves. Amazon reserves the right to assign the self-service accounts according to strict guidelines. Only a few large companies have access to a self-service account. This account is often preceded by a successful collaboration with Amazon's managed service. Another possibility to use Amazon DSP is the managed service of agencies. No minimum budget is required for this. However, we recommend EUR 5,000 per month in order to generate enough impressions and thus generate a meaningful range.

Full Amazon Advertising Funnel

Through the Use of the Amazon DSP the entire Amazon Advertising Funnel can be used. Merchants who only concentrate on using Amazon Marketing Services via the Advertising Console can only reach potential buyers in the marketplace when searching for a product. Often the customer already has a certain intention to buy and is already in the phase of the intention to buy. By using the Amazon DSP, the customer can be accompanied through the entire customer journey.

An important basic requirement for the successful use of the entire Amazon Advertising Funnels are precisely defined (company) goals and knowledge of the respective product life cycles. Different indicators for measuring success apply to the individual phases of the customer journey. Does the customer know my product or is it an innovation that first needs to be understood and perceived.

Notoriety &
Purchase consideration

Important KPIs for the goal of Brand awareness can be, among other things, the impressions and the reach of the unique users. In this phase of the sales funnel, it is primarily not about profitable sales, but about bringing the product or brand into the awareness of the customer. For the phase of Purchase consideration Especially the detailed page views play an important role. Did the customer consider and click a product? The target group for campaign control via DSP is often more broadly defined than for the intended purchase.

Purchase intention &
Purchase decision

Especially in the phase of purchase intention (but not only), the first-party data from Amazon (Amazon Audiences) can be used and, with the help of the DSP, interested parties who have viewed similar products in the last 30 days but have not bought them can be recorded. The detail page views remain a key KPI for a successful approach.

In the purchasing decision section, data such as “added to shopping cart” or “added to wish list” play an important role. When making a purchase, the ROAS (Return on Advertising Spend) comes to the fore.

Conversion &
Purchase completion

Companies that offer products on Amazon can particularly benefit from the combination of Advertising Console and Amazon DSP. The use of retargeting campaigns via DSP should be emphasized here. Customers who were already in the purchasing decision phase and have not converted can continue to be advertised on and off Amazon with the help of DSP retargeting. Should the target be a profitable display of the advertising campaigns, must ASIN retargeting campaigns always be considered.

As a rule of thumb, the higher up the funnel, the more expensive it is to convert a prospect into a buyer.

Advantages of the Amazon Demand Side Platform

By using the Amazon DSP, the advertiser has access to exclusive advertising networks from Amazon as well as almost all major open exchanges and supply side platforms (SSPs). With these advertising options, the placement of programatically controlled campaigns offers a significantly higher reach than “just” sponsored ads and a broader and more varied display. Furthermore, the user data from Amazon can be accessed. By using this first party data (Amazon Audiences) it is possible to play out advertising campaigns more precisely than ever before. Other providers of display advertising campaigns (Google, Facebook, etc.) can only make assumptions about user behavior and especially about purchasing behavior. After clicking on an advertising banner (e.g. for an online shop), these providers can no longer make any statements about user behavior. However, Amazon knows the actual search, purchase and return behavior. Through the Use of audience data from Amazon When creating the target group, wastage can be avoided and the ads can be directed at the right time in the sales funnel.
This data can be made available via the DSP through the automated and real-time analysis of the surfing and shopping behavior of Amazon's customers. It is possible to address users with a current purchase interest or a specific purchase intention.

With classic advertising networks, the goal is often to display advertising based on the supposed interests of the user. If, for example, a user finds out about modern interior design on a website, advertising for suitable furniture is placed on this page. Through the Use of first party data from Amazon (Amazon Audiences), users can be targeted who have viewed furniture products on Amazon but have not yet bought them, regardless of where the user is on the Internet. If this customer buys a chair, for example, it is automatically excluded from further advertising.

Furthermore, it is possible to show the converted prospect further, similar products (e.g. a suitable table) because it is known from the sale that he has already bought a piece of furniture. In addition, the algorithm learns from user behavior which ad types work in which advertising spaces. These findings can be evaluated with the help of reports and other, unrecognized target groups can be identified and advertised.

Amazon DSP: Targeting

Another Advantage of the Amazon DSP is the possibility of cross-device targeting. Depending on the product category, the interested party uses different devices to make a purchase. With the help of the Amazon DSP it is possible to play the advertising on different devices. In the course of the customer journey, some customers switch devices and complete the purchase there.

Amazon DSP: algorithm

The Amazon DSP algorithm analyzes in real time whether existing advertising space corresponds to the campaign goals. In this way, it is checked automatically and without delay whether advertisements (impressions) have been purchased. The real-time bidding (RTB) approach is already known from other providers. This automatic comparison of the advertising space and campaign goals enables the algorithm to optimize the display.

Amazon DSP: Brand Safety

Brand safety and ad fraud prevention also play a superficial role at Amazon. In a combination of manual tests and cooperation with leading technology companies, Amazon checks the impressions before and after delivery. The advertiser only pays for impressions that pass this examination procedure.

Targeting options with Amazon DSP

Amazon DSP Standard Display Ads (SDAs)

When using Standard display ads the advertisements can be designed individually in different sizes. It is possible to work with creative elements and the corporate identity. The standard display ads can be a static image or an animation. Different format sizes and landing page options apply for display in apps. Popular formats for these display campaigns are “Skyscraper” (120 x 600 pixels), “Banner” (468 x 60 pixels), “Leaderboard” (728 x 90 pixels), “Square” (250 x 250 pixels), “Half -page Ad "(300 x 600 pixels)," Rectangle "(336 x 280 pixels) or" Billboard "(970 x 250 pixels).

Amazon DSP Dynamic E-Commerce Ads (DEAs)

The Dynamic eCommerce Ads are automatically (individually) designed and are always based on an ASIN. Depending on the advertising space and KPI, the form of presentation is automatically adjusted. If a customer values ​​the product reviews, the ad is displayed with a rating. When displaying the ad, Amazon compares the goals of the campaign with the preferences of the customer. The name of these ads is due to the dynamic structure and adaptation of the advertising banners.

Incidentally, the corresponding product is always linked on the Amazon Marketplace.

Amazon DSP Videos Ads
(VAs)

The Video Ads are displayed on mobile, desktop and apps. A distinction can be made between three different advertising formats: In-Stream Video Ads, Out-Stream Video Ads and In-App Interstitial Video Ads. With in-stream video ads, the ads are usually integrated into other videos as pre-rolls. Out-Stream Video Ads stand as a video on their own and are not linked to other content. In-app interstitial video ads are, similar to out-stream video ads, standalone advertising videos. However, the in-app videos cover the actual content and are therefore often perceived by users as "annoying".

In order to ensure that the advertisements are as likely to be shown as possible, advertisers should provide many different banner formats. As an Amazon agency, we are happy to support you with our creative team.

FAQ: Frequently asked questions about Amazon DSP

The Amazon DSP can basically be used by anyone. Even companies that do not offer products on Amazon can use this service. However, this requires access to the advertising platform, which is currently only granted to a few partners.

There are two ways to get access to the Amazon DSP. The first option is to use Amazon's “managed service”. Amazon employees control and manage the advertising campaigns. The second option is “self-service access” (own entity), in which the company or an agency controls the campaigns.

A minimum booking volume of 10,000 euros per month is required to hire the Amazon advertising team. Amazon currently charges a fee of 15% plus a platform fee of 10%.

When it comes to assigning self-service access, Amazon is very selective. Companies that do not focus on programmatic advertising only rarely get access to the Demand Side Platform. This access is often preceded by a long and successful cooperation in the managed service. Some external agencies (such as intomarkets) have DSP access and can provide the service.

There is no flat-rate minimum budget when using self-service access. As an agency, we offer our managed service from EUR 3,000 per month. However, at least EUR 5,000 per month has been established as a guideline in order to be able to achieve meaningful results. Depending on the product portfolio and the goals, a larger budget and a term of at least three months can make perfect sense.

Billing in programmatic advertising is based on CPM (TKP). There is a fee for every 1,000 advertisements. This is a major difference to the cost-per-click model in performance marketing. There costs are only incurred when you click on the ads, regardless of the impressions.

The Amazon DSP can be used to pursue different goals (sales, branding, product launch). 1st party audience data from Amazon is the "golden treasure" that can always be activated if you want to target a campaign. This special feature sets Amazon apart from other competitors and makes the Amazon DSP unique.