Amazon DSP (Demand-Side Platform) is a programmatic advertising platform that enables advertisers to place targeted display and video ads on and off Amazon. By accessing extensive user data from Amazon, the platform offers precise target group targeting based on buying behavior, interests and demographic characteristics.
How Amazon DSP works
- Audience targeting
- Amazon DSP uses first-party data from Amazon to display targeted ads for relevant users.
- Retargeting makes it possible to retarget potential customers who have already shown interest in a product.
- Lookalike audiences help attract new customers who are similar to existing buyers.
- Placement of ads
- Advertising can be placed on Amazon-owned platforms (e.g. Amazon.de, Fire TV, Kindle) as well as on external websites and apps.
- High-quality inventory sources such as Amazon Publisher Services or third-party exchanges are available.
- advertising formats
- Display Ads: Static or dynamic banners that appear on websites or apps.
- Video ads: Moving image ads on streaming platforms such as Prime Video or Twitch.
- Audio Ads: Commercials on Amazon Music or Audible.
- Auction model & bidding strategies
- Amazon DSP works with a real-time bidding system (RTB — Real-Time Bidding).
- Advertisers set bidding strategies to make efficient use of the advertising budget.
- Campaign measurement & optimization
- Detailed analyses make it possible to precisely monitor the success of campaigns.
- KPIs such as click rate (CTR), conversion rate and cost per acquisition (CPA) help with optimization.
synopsisAmazon DSP enables data-driven, programmatic advertising with precise targeting. With advanced analysis and optimization tools, companies can manage their advertising strategies in a targeted manner and minimize wastage.
