Scale Insights Team
Every seller wants to slash their ad spend and amplify their reach on Amazon—but did you know that whether to invest in DSP Ads or Sponsored Display can make all the difference? The battle of Amazon DSP Ads vs Sponsored Display boils down to more than just choosing an advertising type; it's about understanding which platform can turn browsers into buyers and clicks into conversions for your products.
In this comparative guide, we get into the details that set Amazon DSP Ads apart from Sponsored Display, examining their functionalities, targeting options, and cost structures. Rest assured, the insights here will steer you toward the advertising solution that promises the greatest payoff.
Don't let indecision drain your budget—read on to pinpoint the ad platform that best matches your marketing strategy.
What are Amazon DSP Ads?
Amazon DSP (Demand-Side Platform) Ads is an advertising platform that enables advertisers to programmatically buy display, video, and audio ads both on and off Amazon. The platform is designed to help advertisers reach their target audiences with precision and efficiency.
DSP Ads offer a range of ad formats, including display, video, audio, and native ads, to help advertisers engage with their target audience across multiple devices and platforms. The platform uses advanced algorithms to optimize ad performance and deliver the best possible results for advertisers.
Targeting Capabilities
Amazon DSP Ads provide advertisers with a wide range of targeting capabilities, including demographic, behavioral, contextual, and geographic targeting. These targeting options allow advertisers to reach their desired audience with precision and efficiency.
The platform also offers a range of advanced targeting options, such as lookalike targeting, which enables advertisers to reach new audiences that are similar to their existing customers. Additionally, Amazon DSP Ads allow advertisers to target specific audiences based on their browsing and purchase history on Amazon.
What are Sponsored Display Ads?
Sponsored Display Ads are a type of advertising format offered by Amazon Advertising that allows advertisers to reach potential customers while they are browsing on Amazon. These ads are designed to promote a product or brand and are displayed to Amazon shoppers who are likely to be interested in the advertised product.
Sponsored Display Ads are created using a self-service advertising platform called Amazon Advertising Console. Advertisers can create, manage, and optimize their campaigns using this platform. The platform provides various targeting options, including targeting by product, interest, or behavior, which allows advertisers to reach their desired audience.
Ad Placement and Visibility
Sponsored Display Ads are displayed on various Amazon pages, including product detail pages, search results pages, and other relevant pages. These ads are displayed in different formats, including static images, videos, and dynamic ads.
Sponsored Display Ads are typically displayed below the product details section on product detail pages. On search results pages, these ads are displayed at the top or bottom of the page, or within the search results. These ads are also displayed on other relevant pages, such as category pages.
Sponsored Display Ads are designed to be relevant and non-intrusive. They are displayed in a way that does not disrupt the shopping experience of Amazon customers. These ads are labeled as "Sponsored" to distinguish them from organic search results.
Comparing DSP vs Sponsored Display Ads
While both DSP (Demand-Side Platform) and Sponsored Display Ads allow you to reach potential customers on Amazon, there are some key differences to consider when deciding which option is best for your business.
Audience Targeting Differences
One of the biggest differences between DSP and Sponsored Display Ads is the level of audience targeting available. DSP allows for more advanced targeting options, including the ability to target specific audiences based on their browsing and purchase history, as well as their demographic and geographic information. On the other hand, Sponsored Display Ads offer more limited targeting options, primarily based on product and interest targeting.
Cost Structures
Another key difference between DSP and Sponsored Display Ads is the cost structure. DSP operates on a cost-per-thousand-impressions (CPM) model, while Sponsored Display Ads operate on a cost-per-click (CPC) model. This means that with DSP, you pay for every thousand impressions your ad receives, while with Sponsored Display Ads, you pay each time someone clicks on your ad.
Ad Performance Metrics
Finally, it's important to consider the ad performance metrics available with each option. DSP offers more detailed reporting and analytics, allowing you to track metrics such as viewability, engagement, and conversions. Sponsored Display Ads offer more limited reporting options, primarily focused on clicks and impressions.
Strategic Use Cases
When to Use DSP Ads
Amazon DSP ads are best used when you want to reach a larger audience with a specific message. These ads are ideal for businesses that want to target customers based on their interests, behaviors, and demographics. DSP ads are also useful when you want to increase brand awareness and drive sales.
One of the key benefits of Amazon DSP ads is that they allow you to target customers across multiple devices and platforms. This means that you can reach customers on their mobile devices, desktops, and even connected TV devices. DSP ads are also great for retargeting customers who have previously interacted with your brand.
When to Use Sponsored Display Ads
Sponsored Display ads are best used when you want to target customers who are already interested in your products. These ads are ideal for businesses that want to drive sales and increase product visibility. Sponsored Display ads are also useful when you want to increase brand awareness and drive traffic to your product detail pages.
One of the key benefits of Sponsored Display ads is that they allow you to target customers who have already viewed your products or similar products. This means that you can retarget customers who have previously shown interest in your brand. Sponsored Display ads are also great for cross-selling and upselling products to existing customers.
Optimization and Best Practices
Optimizing DSP Campaigns
When optimizing your Amazon DSP campaigns, there are a few best practices to keep in mind. First, make sure you are targeting the right audience. Use Amazon's data to identify the most relevant audience segments for your product or service. You can also use third-party data to further refine your targeting.
Another important factor to consider is ad creative. Make sure your ad creative is eye-catching and relevant to your target audience. Use high-quality images and clear messaging to convey your product or service's value proposition.
In addition to targeting and ad creative, it's important to monitor your campaign performance regularly. Use Amazon's reporting tools to track key metrics like impressions, clicks, and conversions. Use this data to make informed decisions about how to optimize your campaign for better performance.
Optimizing Sponsored Display Campaigns
Optimizing your Sponsored Display campaigns on Amazon involves similar best practices. First, make sure you are targeting the right audience. Use Amazon's targeting options to reach shoppers who are most likely to be interested in your product or service.
Next, focus on ad creative. Use eye-catching images and clear messaging to grab shoppers' attention and communicate your product or service's value proposition. Consider using Amazon's dynamic creative optimization (DCO) feature to automatically test different ad creative variations and optimize for better performance.
Finally, monitor your campaign performance regularly. Use Amazon's reporting tools to track key metrics like impressions, clicks, and conversions. Use this data to make informed decisions about how to optimize your campaign for better performance.
Conclusion
In essence, the choice between Amazon DSP Ads vs Sponsored Display all depends on your campaign goals, target audience, and how hands-on you want to be with your advertising efforts. DSP Ads offer unparalleled reach and sophisticated targeting options for those looking to cast a wider net, while Sponsored Display provides simplicity and direct access to consumers closer to the point of purchase on Amazon's platform. The power lies in your hands to select the ad type that will not only meet but exceed your marketing objectives.
For those inclined to dive deeper and truly master the intricacies of Amazon's advertising ecosystem, particularly DSP, a wealth of resources awaits. Take the next step in refining your DSP strategy by reading our guide to Amazon DSP Management. Here, you'll find expert insights and advice to ensure your DSP campaigns are as effective and efficient as possible. Click through to optimize your Amazon advertising today.
Frequently Asked Questions
Is Amazon DSP same as sponsored display?
No, Amazon DSP (Demand-Side Platform) and Sponsored Display are two different advertising solutions offered by Amazon. While Amazon DSP allows advertisers to reach audiences across the web, Sponsored Display is exclusively available on Amazon.com and allows advertisers to target shoppers who are actively browsing or searching for products.
What is the difference between sponsored ads and sponsored display?
Sponsored Ads are pay-per-click (PPC) ads that appear on Amazon.com and in search results. Sponsored Display, on the other hand, is a display ad format that appears on product detail pages, customer review pages, and in follow-up emails to customers who have purchased or viewed a product.
What is Sponsored Display on Amazon?
Sponsored Display is an advertising solution offered by Amazon that allows advertisers to target customers who have viewed or purchased a product in the past. The ads appear on product detail pages, customer review pages, and in follow-up emails to customers who have purchased or viewed a product.
Who can use Amazon sponsored display ads?
Amazon Sponsored Display is available to all sellers and vendors who are enrolled in the Amazon Brand Registry program. To use Sponsored Display, advertisers must have an active Amazon Advertising account and a registered brand.
What does DSP mean in Amazon DSP?
DSP stands for Demand-Side Platform, which is a type of advertising technology that allows advertisers to programmatically buy and manage digital ad inventory across multiple ad exchanges and publishers.
What stage of the funnel is sponsored display designed for?
Sponsored Display is designed to target shoppers who are in the consideration stage of the purchasing funnel. These shoppers have already viewed or purchased a product and are more likely to convert than those who have not interacted with the product before.
