Getting Started with Amazon DSP: Key Differences from PPC
May 2, 2024
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Adam Mellott, an expert in Amazon DSP advertising, shares his insights on enhancing brand visibility using Amazon's Demand-Side Platform. He emphasizes the power of targeting specific audiences based on behaviors and purchase history, updated every 8 seconds. The discussion also covers the advantages of integrating DSP with existing PPC campaigns, leveraging Amazon's first-party data for broader outreach beyond the platform. Adam highlights custom audience strategies and the accessibility of DSP through agencies, making it a game-changer for brands looking to maximize their advertising impact.
Utilizing Amazon DSP allows brands to leverage first-party data for precise audience targeting based on user behaviors and purchase history.
The integration of DSP with existing PPC campaigns can enhance overall advertising effectiveness by retargeting and nurturing potential customers throughout their buyer journey.
Deep dives
Understanding Entry Points for Amazon DSP
Getting started with Amazon DSP involves determining if testing this advertising platform is appropriate for specific brands. Two primary avenues exist for entering DSP: through a self-service option provided by Amazon, which requires higher minimum budgets, or through an agency with a DSP seat, like Better Media, which offers lower entry points and more manageable budgets. For agencies, testing can begin with a minimum budget of around $10,000, allowing for more focused remarketing or prospecting strategies across products. Brands must assess their readiness, including evaluating past performance, product ratings, and ensuring efficient PPC campaigns to maximize DSP effectiveness.
Maximizing First-Party Data Capabilities
Amazon DSP provides invaluable access to both first-party data from Amazon and third-party audience insights, giving advertisers the opportunity to target consumers based on recent purchasing behavior and interests. First-party data allows for highly granular audience segmentation, such as targeting users who have recently purchased competing products or individuals who frequently buy within a specific category. This data is refreshed frequently, providing real-time access to in-market audiences, which can significantly enhance the efficiency of advertising campaigns. The ability to exclude existing customers while reaching new prospects aids brands in acquiring new to brand traffic effectively.
Distinguishing Between DSP and PPC Strategies
The fundamental differences between Amazon DSP and PPC advertising lie in their targeting methodologies and bidding structures. DSP utilizes audience targeting instead of keyword targeting, focusing on user demographics, shopping behaviors, and interests, which contrasts with the cost-per-click model prevalent in PPC. Consequently, DSP can employ strategies to reach consumers who may not be actively searching for products but are within the intended audience, enhancing brand visibility. Additionally, creatives within DSP allow for more significant customization compared to the relatively limited creative options in PPC, enabling brands to craft messages tailored to various stages of the customer journey.
Integrating DSP with Existing Advertising Strategies
To ensure the successful integration of DSP with existing PPC campaigns, brands need to align their strategies to avoid cannibalizing sales that would have occurred organically. DSP should complement PPC efforts by retargeting users who have engaged with ads but have not completed a purchase, effectively nurturing them along the buyer's journey. Leveraging insights gained from Amazon Marketing Cloud can help identify the optimal mix of impression-based and click-based advertising for each product segment. By utilizing custom audience targeting, marketers can enhance customer acquisition efforts while managing advertising costs and improving overall campaign efficiency.
Welcome to the first episode of our Amazon DSP Series!
Amazon DSP Series - Episode 1: Join Justin Nuckols and Adam Mellott, from BTR Media, as they break down Amazon's Demand Side Platform (DSP). Discover how Amazon DSP can enhance your advertising strategy beyond traditional Pay-Per-Click (PPC), leveraging Amazon’s first-party data to offer unprecedented targeting capabilities for enhanced brand visibility and tailored audience engagement. Adam and Justin get into the strategic use of DSP to target competitor audiences and integrate with existing PPC campaigns, providing insights and strategies used by us and the brands we partner with. Hear firsthand how custom audience building and creative strategies can significantly improve your targeting efforts.
The understanding of the DSP platform’s audience targeting and creative capabilities to be utilized effectively, differentiating it from your PPC advertising strategy.
Custom audience building in DSP and the ability for brands to reach users based on specific behaviors, lifestyles, and purchase history, which is updated about every 8 seconds.
Accessibility of DSP through agencies like BTR Media, with lower financial barriers compared to direct Amazon self-service.
How DSP allows brands to advertise beyond the Amazon website using Amazon's first-party data, targeting potential customers on Amazon-owned and third-party websites.
The integration of DSP and existing PPC strategies and creating a cohesive advertising approach that maximizes brand exposure and customer acquisition efficiency.