Introduction to the Amazon DSP
This course will provide an overview of programmatic advertising with Amazon, as well as the benefits of using Amazon DSP to achieve your programmatic advertising goals.
Programmatic advertising with Amazon
Programmatic advertising is the use of computer software to automate the buying and selling of digital advertising.
Programmatic advertising increases efficiencies by allowing advertisers to serve impressions at the right time, to the right audience, cutting down on ad waste.
Programmatic advertising analyzes each impression against advertisers' goals in real-time.
The majority of programmatic ads are sold using the CPM model and are typically less expensive than direct buys.
Cost per thousand, or CPM, is the amount of money an advertiser pays per 1,000 ad impressions.
Programmatic ads can be purchased on a fixed or dynamic CPM (dCPM) model. A fixed CMP is a static rate to pay for every 1,000 impressions. This model can be utilized to purchase private marketplace (PMP) or direct deals. A dCMP allows advertisers to set a price range for any single impression. The rate paid for an impression may differ depending on it's value and campaign optimizations.
This technology allows advertisers to gain efficiencies with regard to optimizing their campaign budgets.
The Amazon DSP
Benefits of the Amazon DSP
For those new to online advertising, you may wonder what DSP refers to. A DSP, or demand-side platform, is software that allows advertisers to automate buying inventory from publishers' sites, and manage multiple Ad Exchange and Data Exchange accounts through a single interface. Basically advertisers can bid on and optimize ads all in one place.
There are a number of benefits to using the Amazon DSP, from exclusive first-party insights to brand safeguards.
Amazon audience solutions
Amazon DSP enables advertisers to leverage Amazon’s first-party insights based on billions of observed shopping patterns across the customer decision journey. We believe these insights are the best indicators for reaching the most relevant people to your brand through lifestyle and life stage audience segments.
To reach the most relevant audience, advertisers can leverage both Amazon’s audiences and their own audiences, by using pixels, a data management platform (DMP), hashed audiences, or 3rd party integrators.
The Amazon DSP provides audience insights and robust performance analytics pre-, during, and post-campaigns.
Amazon's deep reporting analysis includes key metrics such as add to cart rate, total purchases, and product units sold for brands that sell on Amazon, as well as pixel conversion rate, and video completion rate for brands that do not sell on Amazon.
Comprehensive & unique supply
Amazon’s unique supply is the impressions that advertisers can access through the DSP that they cannot access via other DSPs.
Advertisers can access comprehensive and unique inventory from Amazon owned-and-operated (O&O), 3P exchanges, Amazon Publisher Services, and private marketplaces, to boost targeted reach of Amazon shoppers whenever and wherever they shop or consume content.
The Amazon DSP enables advertisers to build cross-device campaigns, which is essential today given how cross-device shopping is the new normal.
Advertisers can achieve marketing goals by reaching Amazon shoppers at scale wherever they are: whether they are on or off Amazon.
The Amazon DSP uses both Amazon's own and third-party solutions, from manual site reviews to real-time bid evaluation, to uphold quality standards and brand safety.
The Amazon DSP monitors for brand safety, traffic quality, viewability and 3rd party supply quality.
Campaign creation and optimization
Advertisers can optimize their campaigns to reach advertising and business goals. The Amazon DSP offers manual and automatic optimizations.
Automatic optimizations: The system will adjust bids to serve through the best formats and the best supply sources and sites. Additionally, Amazon DSP's optimization engine analyzes every impression against your goal in real-time. This can apply up to 500,00 predictors, which gives you Amazon first-party insights based on observed shopping patterns. Amazon's DSP also has an automated optimization feature which dynamically updates budgets according to a campaign goal.
Manual optimizations: Advertisers can manually optimize various levers of a campaign, including budgets, audiences, bids, frequency caps, and supply. Advertisers can leverage display, video and mobile ad types, as well as creative types such as:
display ads with e-commerce creative
video creative builder ad units
third-party served ads
Link in and link out campaigns in the Amazon DSP
The Amazon DSP allows you to create link in and link out campaigns.* The core difference between these is the campaign's destination. Link-in campaigns drive traffic to an Amazon destination, directing customers to a brand's product detail page, Store, or campaign landing page. Link-out campaigns direct customers to a non-Amazon destination, such as a brand's website.
Link-in campaigns are available to brands that sell goods or services on Amazon. These campaigns direct customers to your brand's product detail pages on Amazon, or another Amazon destination, even when those customers are visiting third-party (non-Amazon) sites and apps.
Link in campaigns can be used to drive consideration and purchase.
A link out campaign allows you to leverage the Amazon DSP to direct audiences to your brand’s landing page off of Amazon. Only certain campaigns may be approved for link out, such as those
advertising a service that Amazon does not offer
advertising products under a category that Amazon does not offer
For example, an automotive brand wants to drive site traffic to its own website, where it’s announcing a new car model. Since Amazon does not sell cars, the advertiser implements a link out campaign to direct car enthusiasts or customers looking for car-related items from Amazon to its website.