Amazon’s Demand Side Platform (DSP) advertising is a compelling proactive display advertising service. Leveraging Amazon’s rich consumer data, DSP advertising provides the opportunity to proactively reach target audiences through big data analysis, providing sellers with a highly potential promotion channel.

1. Advantages of DSP advertising

Audience insights based on big data

The main advantage of Amazon’s advertising lies in its complete consumer data, which records the decision-making process of billions of users. This allows DSP advertising to use its full-site user data to complete precise population grouping, which is significantly different from the targeting methods of other platforms.

Unique population targeting function

Amazon DSP has 7 unique population targeting methods, which deeply investigates user behavior and finds the most potential market users for sellers based on their shopping habits. This unique population grouping provides important support for accurate advertising targeting.

Activity reporting and optimization functions

DSP provides detailed reports showing different KPIs of advertising campaigns and the impact on impressions, clicks, and conversions. This provides users with insights to optimize advertising, thereby improving the effectiveness of advertising.

Targeting methods for cross-device groups

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

Unique traffic pipeline

Amazon DSP advertising not only utilizes Amazon’s on-site media resources, but also integrates the traffic resources of third-party advertising trading platforms to form a unique traffic pipeline.

2. Challenges of DSP advertising

Although DSP display ads have many advantages, it is much more difficult for display ads to pursue a return on advertising expenditure than on-site search ads. Both novice and experienced sellers need to face the following challenges:

The difficulty of pursuing ROAS

High threshold requirements for advertising

Need to adapt to the sales characteristics and market performance of the product

Amazon DSP advertising provides sellers with a highly potential and promising advertising delivery platform, however, the challenge of improving the return on advertising expenditure cannot be ignored. Professional advertising delivery strategies and precise targeting choices can help sellers make full use of the advantages of DSP and enhance the effectiveness of brand promotion.