So you’ve got your Sponsored Products, Sponsored Brands, maybe even some Sponsored Display ads all humming along on Amazon and you are looking for ways to expand your reach for new/existing customers throughout their shopping journey. Amazon DSP is a demand-side platform that enables advertisers to programmatically buy display and video ads. For the first-time DSP readers out there: its Amazon’s version of Google AdWords. This article will focus on utilizing Amazon DSP from the perspective of a brand that currently sells on Amazon.

You’ve heard of the sales funnel, right? If you haven’t, here is a nice little graphic to remind you before we get into the article:

Amazon DSP allows advertisers to target shoppers in virtually all segments of this funnel, but becomes especially useful when used as a mid- to upper-funnel advertising vehicle. Because of the access you get to Amazon’s exclusive audiences, the targeting is especially beneficial to Amazon sellers wishing to expand their advertising beyond PPC.

How much does it cost? You’ve got two options when it comes to running DSP ads: (1) hire Amazon’s in-house DSP team to create, optimize, and run your campaigns with a minimum $35k spend or (2) utilize an agency like Pitted Labs to offer the same white-glove service with no minimum spend requirements. Although using an agency like Pitted Labs does not technically have a minimum spend requirement, we highly recommend spending at least $5k/month.

For brands with an existing advertising strategy (i.e. sponsored products, sponsored brands), here is a general approach we’d recommend when layering in DSP ads (bold text):

Step 1: Lay Foundation – Optimize detail pages to be “Retail Ready” so customers are taken to beautiful and engaging detail pages.

Step 2: Harvest Demand – Layer always-on Sponsored Ads to harvest demand, pushing searchers and intenders to purchase

(and now for the DSP part)

Step 3: Maximize Existing Demand through DSP – Leverage retargeting audiences to maximize sales from traffic already coming to your brand’s detail pages

Step 4: Increase Scale through DSP – Attract customers already searching and browsing in your product categories

Step 5: Build audiences – Reach new shoppers with display and video ads to educate about your brand

Amazon DSP is a completely different advertising beast, especially if you are coming from the sponsored product/brands world on Amazon. However, it’s an extremely effective tool when utilized properly and can help get your brand in front of millions of potential customers that otherwise would have been impossible to reach.

Interested in seeing how DSP could help your brand reach new levels on Amazon? Contact us today and one of our DSP experts will be in touch shortly!


Tyler Allgaier

Taking his background in accounting and applying it to his love of all-things business, Tyler is the businessman behind the Pitted Labs curtain. Having led the financial operations of multiple startups and working with some of the nation's largest companies, Tyler knows what it takes to be successful. As a wise man once said, "Every company needs a Tyler."

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