Amazon DSP: How it works and its advantages

Amazon DSP, programmatic advertising, how it works, advantages: everything you need to know

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What is Amazon DSP?

Amazon DSP stands for "Amazon Demand Side Platform". The system allows targeted advertising to be delivered on the Amazon Ads network, but not only that, and this is one of the main advantages of Amazon DSP .

The other advantage of the platform is that advertising space purchases are done programmatically, that is to say, automatically and optimized by powerful algorithms. 

The DSP console allows advertisers to buy advertising space across Amazon's entire partner network, with spaces selected according to multiple criteria: keyword, target audience, budget, ad placement, etc

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How does Amazon DSP work?

Amazon DSP relies on programmatic advertising. This means that ad matching, bid adjustments, and ad format are optimized in real time. This is sometimes referred to as RTB (Real-Time Bidding) advertising.

Depending on the advertising budget allocated by the advertiser, the algorithms determine the optimal bid amount for the advertisement to be displayed if a set of signals are gathered to estimate that there is a strong relevance between your advertisement and the user.

The locations where your ads are displayed are also selected by algorithms, and depending on the locations, different ad formats may be shown. 

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What are the different advertising formats that can be displayed with the Amazon DSP console?

Amazon DSP allows the distribution of traditional advertising formats, such as static ads, composed of a fixed image and a call-to-action that redirects to a landing page, but the system offers many other communication opportunities. 

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Dynamic ads

Dynamic ads are displayed in real time based on the information entered in your product feed. 

Similar to Google Shopping ads, the system retrieves your product title, price, featured image and generates an ad thumbnail. 

You can also optimize your sales by distributing other, more modern advertising formats that are better suited to the way web content is currently consumed. 

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Video advertisements

Amazon DSP allows the broadcasting of advertisements called Streaming TV ads. 

You communicate your advertising message on television content broadcast via streaming, notably through the Twitch platform, a subsidiary of Amazon. 

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Audio advertisements

Your audience consumes web content, but not only that. They consume digital content, and this also includes listening to music, via Amazon Music. 

Amazon DSP offers you the opportunity to broadcast your message in an audio format ranging from 10 to 30 seconds. 

Audio ads are a format available to all advertisers, whether or not they sell their product on Amazon, which represents an interesting communication opportunity for awareness campaigns. 

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The advantages of Amazon DSP and programmatic advertising for third-party sellers

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A huge potential for highly qualified audiences

A gigantic advertising inventory that allows you to expand your potential audience outside of the marketplace.

Algorithmic ad optimization that allows you to pay for the most relevant ad impressions in relation to your objectives

Advertising targeting that relies on powerful signals such as, in the customer journey, the search and purchase history of Amazon customers

Amazon DSP will allow you to target people who have searched for, viewed, or purchased specific products on Amazon, and this information can be used to create lookalike audiences in terms of interests, demographics, and purchase intent.

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Distribution on networks reserved for advertisers using Amazon DSP

This exclusivity allows advertising on networks with less competition than on the traditional Amazon Ads network. Since Amazon DSP is only accessible to advertisers with an advertising investment of €50,000 or more, it is a premium platform available to a limited number of third-party sellers.

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Distribution on networks owned by Amazon

Amazon DSP offers unique inventory on pages it owns and which are only used by Amazon's advertising network, such as Audible, Buy Office Mojo, Goodreads, IMDb, ShopBop, Twitch.tv, the Amazon app, and Zappos

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Are you interested in exploring the business opportunities of Amazon DSP?

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