Amazon DSP advertising: redefining e-commerce traffic guidance and conversion

Amazon DSP advertising is becoming a major focus in the e-commerce field with its powerful data analysis capabilities and diverse positioning options. This article will comprehensively discuss the advantages and challenges of Amazon DSP advertising, aiming to provide sellers with a more comprehensive understanding.

Unique targeting options

Amazon DSP Ads offers a variety of targeting options including interested audiences, lifestyle, remarketing, contextual and lookalike audiences. This means that sellers can achieve precise advertising push through more detailed audience grouping, thereby attracting more potential customers.

Let sellers’ business transcend national borders

Amazon DSP is not limited to within Amazon, but can also display ads to relevant potential customers outside of Amazon. Additionally, it allows the creation of cross-channel campaigns that encourage cross-channel shopping, ensuring customers see ads wherever and whenever they want and are directed to purchase platforms.

Audience insights based on big data

Amazon has complete consumer data and can record the decision-making process of billions of users. This big data analysis capability enables DSP advertising to complete precise grouping of people, thus forming differentiated competition with other platforms.

Unique crowd targeting function

Amazon DSP’s unique seven-group targeting method finds the most potential market users based on users’ shopping habits. This precise targeting mechanism helps improve the efficiency of advertising reach.

Activity reporting and optimization features

DSP advertising provides detailed reports covering different KPIs such as impressions, clicks, conversions and other key indicators. This information provides valuable insights for optimizing your ads.

Cross-device crowd targeting

Amazon DSP allows you to set up cross-device ads and track advertising effects throughout the entire link, which greatly enhances the accuracy of advertising delivery.

Unique traffic pipeline

In addition to utilizing Amazon’s on-site resources, DSP also integrates the traffic resources of third-party advertising exchange platforms to form a unique traffic pipeline.

Reporting and Performance Analysis

Amazon DSP platform users can gain additional revenue from this type of advertising and access relevant audience insights, campaign performance and purchasing behavior through data. The report details customer behavior before, during and after the event.

Challenges of DSP advertising

Although DSP advertising has many advantages, pursuing return on ad spend (ROAS) is much more difficult than on-site search advertising. In addition, there are high threshold requirements for advertising, which need to adapt to the sales characteristics and market performance of the product.

Redefine user purchasing behavior

Consumers’ purchasing behavior is difficult to predict. Amazon DSP advertising has changed the limitations of traditional search advertising through personalized push, enabling customized display for different consumers.

The operating logic of DSP advertising

Amazon DSP realizes personalized push by analyzing users’ crowd tags, purchasing behavior, purchase intention and remarketing of unpurchased products.

Suitable targets for DSP advertising

There are certain threshold requirements for sellers. For example, the annual sales must be more than 2 million to 3 million US dollars, which is suitable for promoting hot products. The store evaluation must be above four and a half stars, and the sub-category ranking must be within 200.

Suggestions on delivery strategies

DSP advertising is not suitable for new products. It is recommended to increase product exposure through on-site advertising first. Advertising service providers can set the daily display frequency according to the situation, and the delivery frequency can be adjusted according to traffic trends.

Amazon DSP ad targeting methods

There are many targeting modes for Amazon DSP advertising, including demographic targeting, lifestyle targeting, in-market crowd targeting, contextual targeting, retargeting, similar crowd expansion and advertiser-owned crowd matching.

Conclusion

Amazon DSP advertising is gradually becoming one of the important tools for e-commerce merchants to compete for market share. By leveraging its strengths and overcoming associated challenges, sellers can stand out in the fierce market competition.