Amazon DSP and Amazon Ads: Which solution is right for your business?

1. Amazon DSP Platform: a programmatic advertising platform for performance

The Amazon Demand-Side Platform (DSP) is a programmatic advertising tool designed to give advertisers access to large-scale ad inventory. Unlike traditional auction-based advertising formats (such as Sponsored Products or Sponsored Brands), the Amazon DSP offers advanced retargeting capabilities and allows advertisers to purchase display ads outside of the Amazon platform.

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Access to exclusive data for your audiences

One of the main advantages of Amazon DSP is its access to Amazon's first-party data. This means advertisers can use highly detailed information, such as purchase history, product searches, and user buying behavior, to create ultra-targeted advertising campaigns. Amazon Advertising Amazon DSP using this data generate a significant increase in conversion rates .

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Advanced programmatic targeting

The advertising DSP enables granular targeting, not only on Amazon but also on partner sites across the web, via display or video ads. Retargeting is one of the platform's strengths, allowing businesses to target users who have already interacted with their products or services on Amazon. This approach offers the ability to recapture consumer attention, particularly for products with a longer sales cycle.

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Costs and entry thresholds

Another key aspect of Amazon's DSP DSP advertising campaigns require a minimum budget of approximately €15,000 to €35,000 per campaign. Managing Amazon DSP also demands specific skills and advanced analytics tools to maximize return on investment.

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2. Amazon Ads: an accessible solution to maximize product conversions on your ads

In contrast to Amazon DSP , Amazon Ads offers a more accessible solution focused on direct product promotion through three main formats: Sponsored Products, Sponsored Brands, and Sponsored Display. This platform primarily targets products sold on Amazon, allowing advertisers to target shoppers actively searching for a product and directly promote their items.

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Sponsored Products and Product Performance

Sponsored Products are one of the most widely used advertising formats on Amazon. They allow brands to promote their products by placing them in search results and on product pages. This format is primarily based on an auction system, where advertisers pay for specific keywords. According to Marketplace Pulse , sponsored clicks now account for 40% of transactions on Amazon.

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Advertising auction optimization

Another advantage of Amazon Ads is the flexibility of its bidding. Campaigns can be optimized in real time, allowing advertisers to adjust their budgets based on performance. Advertisers who have automated their bidding strategies see a significant improvement in visibility and a reduction in cost per click (CPC), according to reports from Sellics .

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Accessibility for all sizes of businesses

Unlike Amazon DSP , Amazon Ads doesn't require a high minimum budget, making it a particularly suitable solution for SMEs or businesses looking to test the Amazon market without significant financial commitments. This accessibility allows a large number of advertisers to take advantage of the platform, even with more modest budgets.

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3. Comparison between Amazon DSP and Amazon Ads: which strategy to choose?

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The objective of your ads: acquisition vs. retention

Amazon's DSP excels in brand awareness and retention strategies, thanks to its advanced retargeting capabilities. Businesses looking to acquire new customers, strengthen their branding, or reach specific audiences outside of Amazon will find Amazon DSP a powerful tool. Exclusive data and programmatic targeting allow for the creation of customized campaigns, but require a larger investment.

On the other hand, Amazon Ads is ideal for brands looking to quickly increase sales and promote specific products on the marketplace. Its flexibility and low costs make it an essential tool for businesses seeking to optimize their bids and increase product visibility at a lower cost.

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Distinction between Amazon DSP and Sponsored Display

It's important to note that Amazon Ads includes solutions like Sponsored Display , which allow you to create display ads directly on Amazon. These ads target potential buyers based on their activity on the platform and in partner apps. In contrast, Amazon DSP offers more sophisticated programmatic advertising capabilities, allowing you to buy display, audio, and video ads both on and off Amazon, using a cost-per-thousand-impressions (CPM) model. This difference in reach and flexibility explains why Amazon's DSP is more commonly used for large-scale, brand awareness campaigns, while Sponsored Display Ads are more focused on direct sales.

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Cost and inventory management

Budget is a key factor in choosing between these two platforms. Amazon's DSP requires a high minimum budget and advanced technical management. In contrast, Amazon Ads is more affordable and accessible to businesses of all sizes, without requiring specific technical skills for launching and monitoring campaigns.

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So what should we remember?

The choice between Amazon DSP and Amazon Ads depends primarily on your advertising goals and budget. If you're looking to reach a broader audience, both within and outside of Amazon, and benefit from powerful retargeting capabilities, the Amazon DSP is the ideal solution. For businesses with more product-conversion-focused goals and a more limited budget, Amazon Ads offers a flexible and effective solution.

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Sources:

• Amazon Advertising - Amazon Advertising, "Performance insights on Sponsored Products and Ads" (2023)
• Marketplace Pulse, “Performance insights on Sponsored Products and Ads” (2023)
• Sellics, “Best Practices and Strategies for Amazon Campaigns” (2023)