Here’s the reality, Amazon is only getting more competitive. Amazon currently has nearly 10 million sellers actively vying for shopper attention in the marketplace, and they still show no signs of slowing down. Fortunately, you’ve already carved out your niche on Amazon, but how do you keep growing? What lets you protect your audience, capitalize on your competition, and keep you viable for years to come? Amazon Demand Side Platform (DSP). Here’s everything you need to know to leverage it powerfully and successfully to meet and surpass your goals.
Understanding Amazon Demand Side Platform (DSP)
At its core, Amazon DSP is an advertising platform that enables brands to reach potential customers both on and off Amazon’s marketplace. Unlike traditional Amazon advertising methods that focus solely on reaching consumers within the Amazon ecosystem, DSP extends its reach off-site into the broader digital landscape. This can include:
- Amazon-specific pages
- The home page
- Product detail pages
- Search results pages
- The deals page
- Amazon devices
- Fire TV
- Fire tablet
- Amazon-owned websites
- In Amazon apps
- The entirety of the internet!
By leveraging popular websites, apps, and even connected TV devices, brands can target their audience at various touchpoints of their online journey. Being present in multiple areas keeps your products top of mind and encourages new business.
Amazon DSP operates on a real-time bidding system, where advertisers bid to display their ads to specific audiences based on a range of targeting options. These options include demographics, interests, shopping behavior, and even offline purchase history. The platform leverages Amazon’s vast data resources to ensure that brands can deliver relevant and timely advertisements to potential customers.
The Powerful Benefits of Using Amazon DSP
Simply put, correctly leveraging Amazon DSP can unlock a bevy of advantages for your brand.
- Wider Reach and Brand Visibility: Amazon DSP’s ability to extend advertising reach beyond the confines of Amazon significantly enhances brand visibility. Brands can now engage potential customers on high-traffic websites, popular apps, and even during streaming sessions on various devices. This broader reach increases the chances of capturing the attention of new and diverse audiences.
- Precise Targeting: Amazon’s rich data ecosystem empowers brands to craft highly targeted campaigns. Advertisers can tap into granular details such as consumer search history, previous purchases, and browsing behavior to tailor their advertisements. This level of precision ensures that ads are displayed to audiences that are more likely to convert, thus optimizing advertising budgets.
- Holistic Customer Journey: Amazon Demand Side Platform facilitates engagement throughout the entire customer journey. From creating awareness among new potential customers to re-engaging with previous buyers, the platform allows brands to orchestrate a holistic marketing approach. This end-to-end journey coverage nurtures relationships and drives long-term customer loyalty.
- Performance Insights: Amazon DSP provides brands with real-time performance insights, allowing them to gauge the effectiveness of their campaigns and make informed decisions. Metrics such as impressions, clicks, conversions, and return on ad spend (ROAS) offer a comprehensive overview of campaign performance, enabling brands to refine strategies on the fly.
Fueling Brand Growth with Amazon DSP
Amazon Demand Side Platform isn’t just about expanding reach and visibility; it’s a catalyst for brand growth. Here’s how it contributes to the growth trajectory of businesses:
- New Customer Acquisition: The ability to target consumers beyond Amazon’s loyal customer base means that brands can tap into new customer segments. By reaching potential customers on platforms they frequently visit, brands can attract fresh buyers who might have never considered their products otherwise.
- Remarketing and Customer Retention: Amazon DSP is a powerful tool for remarketing to users who have interacted with a brand but haven’t converted yet. This strategic approach keeps the brand top-of-mind and increases the likelihood of conversion over time. Additionally, the platform aids in customer retention by re-engaging previous buyers and encouraging repeat purchases.
- Data-Driven Optimization: Amazon DSP’s robust data analytics enable brands to make data-driven decisions. Advertisers can fine-tune their campaigns based on real-time performance metrics, allowing them to allocate resources effectively and optimize for better results.
- Multi-Channel Consistency: Brands can maintain a consistent presence across multiple channels, reinforcing their messaging and value proposition. This cohesive brand experience fosters trust and loyalty among consumers.
- Measurable ROI: Perhaps the most compelling aspect of Amazon DSP is its ability to provide quantifiable ROI. Brands can track conversions and attribute them directly to their DSP campaigns, giving them a clear picture of the platform’s impact on their bottom line.
The Importance of Cohesion
The most powerful detail of Amazon’s Demand Side Platform services is the cohesiveness it creates for your brand. By advertising on and off platform, your target demographic has a consistent, compelling experience with your brand wherever they are. They come to understand your brand, expect consistency, and develop a sense of trust with you. This is invaluable when it comes to converting later down the funnel.
Additionally, you have more interactions, gain more data, and capitalize on more opportunities when you advertise on more spaces than Amazon alone. The new information you gain empowers future campaigns and shows you what your audience prefers — and doesn’t! When analyzed and implemented, your next efforts are stronger than the last, growing your business and market share.
Want the ultimate tool to bring all of your ecommerce efforts together? Look no further than Flywheel 2.0. Our ground-breaking AI software pulls data from multiple marketplaces to become your one source of truth. It acts on that key information to update your listings and ads automatically every single hour. Flywheel does the work of a team at a fraction of the cost, so you can focus on what you do best: growing your business. Experience the power with a no-risk, monthlong trial.