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What is Amazon DSP? How is this different from sponsored ads?


t is exciting to have a wide variety of ad formats available to you with Amazon advertising. A number of new advertising options are regularly added to Amazon's advertising platform, including DSP and Sponsored Display ads.

The Amazon DSP (Demand Side Platform) allows advertisers to buy display and video ads programmatically, reaching audiences both within and outside of Amazon. Display ads on DSP can be either e-commerce-based or image-based.

Amazon sellers can use Sponsored Display ads as well, which are standard types of ads. This form of advertising offers slightly more precise targeting capabilities than some other forms, such as Sponsored Products.

What is the difference between Amazon DSP and Sponsored Ads?

Although Sponsored Display ads appear off Amazon, and their targeting options differ slightly, their core functionality is very similar to that of Sponsored Products.

In contrast, Amazon DSP has its own platform and exchange, which utilizes programmatic advertising. Automated and machine-learning techniques are used to create programmatic advertising.

Advertisers can access Sponsored Display via the AMS advertising console or Seller Central. Both Amazon and third-party sites can be used to reach consumers. Depending on your needs, you can opt for standard e-commerce creative or e-commerce creative with a customized headline.

When using Amazon DSP, many of the background processes/options that happen automatically in standard Amazon advertisements can be customized, making targeting more precise. In addition, there are more locations where Amazon DSP ads may be shown outside of Amazon.

The difference in Targeting Options for Amazon DSP & Sponsored Ads

Amazon DSP and Sponsored ads use different target options.

Targeting Options for Amazon Sponsored Display Ads

Sponsored Display ads have two targeting options:

  • Product targeting

  • Audience targeting.

Product Targeting:

Product targeting can only be used if you are enrolled in the Amazon Brand Registry. You can find them both on desktop and mobile shopping results pages. A product targeting service allows advertisers to target specific products.

Audience Targeting:

For reaching new customers or retargeting existing customers who are already familiar with your products, Amazon suggests using audience targeting. Advertisements based on audience targeting are only available to Amazon Brand Registry enrolled vendors and sellers.

Targeting Options for Amazon DSP

Amazon DSP, on the other hand, offers a variety of targeting options, such as:

In-Market Targeting: Aims to reach customers who have browsed a specific category within the past 30 days.

Lifestyle Targeting: Targets certain types of customers, such as university students and single parents.

Demographic: The strategy targets individuals with specific characteristics such as age, gender, income, and education.

Remarketing: This strategy targets customers who have engaged with your brand or products previously, whether they have purchased or simply viewed them.

Audience Lookalike: Identify potential customers who have similar needs as those you currently serve.

Advertiser Audiences: Identify past site visitors or subscribers of your CRM or email list who have previously visited your site.

Custom Audiences: In addition to creating custom audiences, Prime Video also gives you access to customer data.

Although these two ad types each offer unique benefits, they can also be used separately or in combination to create an effective campaign.

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