• Abigail Shapland

What Is DSP? Introducing Amazon's Demand Side Platform

Updated: Mar 1, 2021

The Amazon DSP offering sits alongside their core Marketing Services, in a separate platform that allows advertisers to programmatically buy display and video ads in real time both on and off of Amazon.



What is a DSP?

A DSP, or Demand Side Platform, is an online platform that enables brands and advertisers to buy display and video advertising placements in real-time on the Amazon website and across Amazon owned and operated entities such as Fire TV, Kindle and Twitch TV.


One significant benefit of using the Amazon DSP over other platform options, is that it offers advertisers access to a highly engaged and loyal customer base; Amazon shoppers and Prime members.


Research from Statista in 2020 indicates that Prime members spend on average $1,400 every year compared to just $600 for non-prime members. The Amazon DSP gives advertisers the opportunity to reach and engage with these shoppers in a visual way, making the Amazon DSP a great platform for driving brand sales, consideration and awareness with key consumers.



Should I Be Using A DSP?:

Amazon DSP can help you achieve bigger brand goals; extending reach to new audiences, driving consideration with customers on the brink of purchase and re-engaging loyal brand shoppers to make continuous purchases or even cross-sell different products to them.


However, if you are new to Amazon Advertising, running programmatic activity on Amazon’s DSP should not be your initial focus. We always recommend that our brands fully utilise and optimise their PPC strategy before expanding into new territories. This Is because DSP typically sits further up the funnel compared to PPC strategies and requires more specialist expertise in order to fully maximise the opportunity on the platform.


If you feel you have a solid PPC strategy in place and are ready to leap into the world of DSP, we have outlined below 5 reason why you should be using Amazon’s DSP platform below.


Rich Audience Data Amazon has a huge amount of rich and valuable first-party data on every consumer who uses their shopping platform. They understand what you are likely to buy, when and how much. This data is invaluable to ecommerce brands looking to reach new customers and continue to drive product sales. From Amazon’s own curated in-market and lifestyle segments, to demographic, lookalikes and the opportunity to upload your own hashed data you have a wide range of options and pathways to reach the right user at the right time.


Great Brand Safety Measures

With built-in brand safety mechanisms you can rest assured that your ads won’t be serving on unpleasant or risky websites, or even wasting precious marketing budget on fraudulent sites and bots.


Visual and Flexible Creative Options

The differentiator between PPC and DSP campaigns is the visual format of the creatives. Amazon offers a few different creative options for brands looking to advertise programmatically. Dynamic Ecommerce, Image and Video ads comes as standard but there is the option to link third-party built creatives to the platform too.


Brand Building Opportunities

Programmatic advertising can sit at any stage of the marketing funnel however it is best suited to driving new customer acquisition and driving id funnel consideration. With this in mind, Amazon have some amazing brand building options that can be bought through the DSP platform, such as video ads across Twitch, Fire TV and even Amazon Alexa campaigns.


Full-Scale Amazon Advertising Strategy

DSP activity perfectly complements your Amazon PPC strategy; driving new customers to your product pages, increasing overall brand awareness on Amazon and therefore increasing brand searches which your PPC campaigns will pick up. Running both activities ensures you have full-scale advertising coverage both on and off Amazon, boosting growth and solidifying your brands presence on the digital marketplace.


If you’d like to find out more information about Amazon’s DSP capability we would love to chat to you about your opportunity and how we can support you.

Send an email to hello@toucanecommerce.com or message us on socials to get in touch.


#AbbyBlogs #AmazonDSP #ProgrammaticDisplay #AmazonDisplay #DigialMarketing #SponsoredDisplay #BrandAwareness

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