Amazon DSP is Amazon’s display advertising platform that lets sellers reach their target and relevant audience on Amazon sites, apps, and other publishing partners (read: other websites). In short, Amazon DSP is to Amazon, what display advertising is to Google.
Amazon DSP is in a programmatic ad platform built by the Amazon to bring-in more sales for the sellers and hence more revenue and growth for themselves. We know it is a bit difficult to understand this amidst the Amazon PPC so we have made it easy for you in this piece here.
To understand the DSP thoroughly, let us help let us all dig back to the growth strategy employed by Amazon from in its budding days.
Amazon’s flywheel of growth:
With customer obsession as its leading principle, Amazon’s operations were built around the ‘Customer Experience’ by making this happen: Offer the largest possible collection of goods at lower prices than the competition.
1. More products meant more customers and higher traffic which further propelled more sellers to who bring along their products to the platform.
2. More sellers and a large collection of products meant competitive prices, better price points, and hence better value for the customers which translates to improved customer experience.
3. Better value and improved customer experience meant more customers and hence more sellers.
This is a constant feedback loop, a self-serving flywheel. By enhancing the customer experience, Amazon succeeded in continuing this feedback loop growing like a mountain over the years. With the onset of Amazon advertising on the platform the competition became intensive so were the revenues. All the revenue and thus profits were further invested in improving the infrastructure to enhance the customer experience and hence the growth. There is no stopping the Amazon Juggernaut.
Birth of Amazon DSP: Demand Side Platform:
Amazon became a profit haven for the sellers all around. All a seller has to do enlist the product, build the brand, gather reviews, sponsor their products and they got their sales and revenues. As an Online Marketing Company in Hyderabad, Samskriti Business Solutions has helped many brands leverage Amazon advertising in Hyderabad. But more on that in the next part.
So moving on: Sellers and their products grew and still continue to grow like wildfire, but the customer numbers remained the same. The total sales with Amazon advertising using console is limited since the customer numbers do not increase with search advertising creating a bottle-neck scenario. And Amazon needs the customers for the sale to happen, right?
And thus born Amazon – DSP: Demand Side Platform.
How does Amazon Demand Side Platform work?
Amazon – Demand Side Platform(DSP) is all about sellers bringing shoppers to their product on Amazon from the off-Amazon platform. Unlike, Amazon Ad Console where only users with purchase intent are driven to make the purchase, Amazon Demand Side Platform captures relevant users outside the Amazon platform by itself: It creates awareness among users, retargets users with purchase interest and drives them to the purchase.
While Amazon Ad Console’s sales volume is limited, Amazon Demand Side Platform with its Display, Banner, Image, and Text & Video Ads brings-in new customers which is essential for the growth of the seller year-on-year. And how does Amazon accomplish this? Let us discuss that in detail in our part-2 of this series.
Got more queries or need more info on Amazon DSP? Or looking for a digital marketing company in India to jump-start Amazon advertising in Hyderabad? You can contact Samskriti Business Solutions.