How to Run Amazon DSP Ads in 2024: A Complete Guide for Sellers

As competition increases on Amazon, leveraging the right advertising tools can be the difference between success and obscurity. Amazon DSP (Demand Side Platform) is one of the most powerful advertising tools at your disposal in 2024. It allows you to target specific audiences based on detailed data, including purchasing behavior and interests.

In this guide, we’ll break down how Amazon DSP works, why it’s a secret weapon for Amazon sellers, and the strategies you can apply to run successful campaigns.

What is Amazon DSP and Why It’s a Game Changer?

Amazon DSP is an advertising platform that allows brands to buy display, video, and audio ads both on and off Amazon. Unlike Amazon PPC, which focuses solely on promoting your products, Amazon DSP lets you target users based on their interactions with Amazon, such as their browsing and purchasing habits. If you want to learn more, here’s a free course!

Here’s what makes Amazon DSP so powerful:

Behavioral Data: You can target users based on their browsing history, purchases, and more.
Retargeting Options: Reach customers who viewed but didn’t purchase, or those who bought similar products from competitors.
Audience Insights: Get granular insights into who buys your products, helping to improve future campaigns.

Who Should Use Amazon DSP?

Before diving into Amazon DSP, it’s crucial to understand if it’s the right fit for your brand. It’s best suited for brands that are already generating decent sales with Amazon PPC. If your product isn’t converting well through PPC, running DSP ads might not solve the problem, as it’s essentially another traffic source.

Brands that benefit the most from DSP are typically:

Established Amazon sellers with a proven track record.
Sellers with high-conversion products that perform well with Amazon PPC.
Brands looking to expand their reach beyond Amazon through off-Amazon advertising.

The Anatomy of a Successful Amazon DSP Strategy

1. Understanding Your Audience

Amazon DSP allows you to target several audience segments based on:

Product Viewers: People who viewed your product but haven’t purchased in the last 30 days.
Past Purchasers: Users who bought your product but haven’t returned in the last 60 days.
Competitor Shoppers: People who purchased from your competitors but not from you.
Complementary Product Users: Target people who bought related products but not your own.

This data-driven targeting is what makes DSP extremely efficient in retargeting warm leads.

2. Building the Right Funnel

Successful Amazon DSP campaigns involve setting up a funnel to target different audience segments. Here’s a basic structure:

Bottom of the Funnel: Retarget past purchasers who haven’t bought from you in the last 60 days. These are high-converting, loyal customers likely to buy again.
Middle of the Funnel: Retarget product viewers who didn’t make a purchase. These are people who are aware of your brand but need a reminder.
Top of the Funnel: Target competitor shoppers or people who bought complementary products. This helps bring in new customers who are familiar with products similar to yours.

3. Choosing the Right Ad Placements

With Amazon DSP, you can choose where to display your ads:

On Amazon: Ads on Amazon’s homepage, product pages, or search results.
Off Amazon: Display ads on third-party websites like Men’s Health or IMDB, reaching people in different browsing contexts.

Most sellers prefer advertising on Amazon desktop, mobile, and app as it delivers the highest ROI. Off-Amazon ads are ideal for large-scale brand awareness.

4. Crafting Effective Creatives

Your ads need to resonate with your target audience. DSP offers two main creative options:

Responsive E-commerce Ads: These ads pull directly from your Amazon listing, displaying your product as it appears on Amazon, combined with a headline and your brand’s logo.
Custom Creatives: For more advanced campaigns, custom ads can be tailored for different formats and occasions (e.g., holiday promotions). However, responsive e-commerce ads often outperform these.

Here’s additional information below!

Key Metrics to Track for Amazon DSP Campaigns

Once your Amazon DSP campaigns are live, monitoring performance is essential. Here are the key metrics to track:

ROAS (Return on Ad Spend): Keep an eye on how much revenue each dollar spent is generating. A ROAS of 9x or 10x is ideal.
CTR (Click-Through Rate): A higher CTR indicates your ad creatives are resonating with your audience.
Conversion Rate: Monitor the percentage of people who clicked on your ad and made a purchase. DSP generally has lower conversion rates than PPC but can still deliver substantial results if used correctly.

Amazon DSP Desktop and Mobile AD Dimensions.

Amazon DSP offers a range of desktop and mobile web static display ads, designed to reach users across Amazon’s ecosystem and other sites. These ads come in standard sizes, such as medium rectangles, leaderboards, and billboards, with specific dimensions and file weight limits tailored for both desktop and mobile environments.

Information for Desktop below 👇

Information for Mobile below 👇

Full information can be found here.

Conclusion

Amazon DSP ads in 2024 are a powerful tool for scaling your Amazon business. By utilizing Amazon’s audience data, controlling ad placements, and setting up a smart funnel, you can achieve impressive results. However, DSP is best suited for sellers who already have a proven track record on Amazon and are looking to expand their reach further.

If you need personalized guidance or help fine-tuning your strategies, Superfuel AI can assist. Our AI-powered assistant analyzes 36+ key Amazon metrics to identify and address the root causes of sales fluctuations, helping you optimize your storefront and boost sales. Reach out to us at [email protected].

Ben Mathew, Amazon Expert

Ben Mathew is a co-founder at Superfuel, a sales assistant for Amazon sellers. In the past, Ben and his team of e-commerce specialists and software engineers have launched 40+ new brands on Amazon, taking them from zero to bestsellers. In his free time, he is either learning from other top sellers or encouraging his 3 daughters in their love for reading. He is reachable at ben [at] superfuel.io.

FAQs

What is Amazon DSP, and how does it differ from PPC?

Amazon DSP allows brands to target specific audiences both on and off Amazon using detailed behavioral data, while PPC focuses solely on Amazon search results and product listings.

Who should use Amazon DSP?

Brands that are already successful with Amazon PPC and want to expand their reach using advanced audience targeting should consider DSP.

How does Amazon DSP retargeting work?

You can retarget users who viewed your product, purchased from competitors, or previously bought from you but haven’t made a purchase in a set period.

Is Amazon DSP expensive to run?

Yes, Amazon DSP requires a substantial budget, typically over $100,000 annually, and is usually managed by agencies.