Amazon DSP (Demand-Side Platform) is a programmatic advertising platform offered by Amazon that allows advertisers to reach audiences both on and off the Amazon platform. It offers several unique features and advantages compared to some of its competitors in the programmatic advertising space:
Access to Amazon’s Wealth of First-Party Data: One of the most significant advantages of Amazon DSP is access to Amazon’s vast and high-quality first-party data. This includes data on user behavior, purchase history, product searches, and more. Advertisers can leverage this data to create highly targeted and relevant ad campaigns. Amazon’s data is highly reliable and can provide valuable insights into consumer behavior.
Amazon’s Owned & Operated (O&O) Ecosystem: Amazon DSP is seamlessly integrated with Amazon.com, Prime Video, Whole Foods, Twitch, Amazon Devices, IMDb, and more. All of Amazon’s inventory is exclusive so you must use their DSP to access the inventory. Given the reach of Amazon Devices, Prime Video, and other properties, Amazon DSP can be an attractive option for advertisers beyond e-commerce.
Leverage Amazon Data Beyond Their Walled Garden: Amazon’s advertising network extends beyond the Amazon website, enabling advertisers to reach users across a network of websites and apps. This means advertisers can extend their reach beyond just Amazon properties using the DSP. This is a significant advantage for e-commerce and DTC brands.
Amazon Advertising’s Video and OTT Capabilities: Amazon DSP supports video and over-the-top (OTT) advertising, which is increasingly important in the digital advertising landscape. Advertisers can reach audiences through Amazon Prime Video and other connected TV devices.
Amazon DSP (Demand-Side Platform) offers several advantages for advertisers, especially those looking to reach Amazon’s vast audience and leverage its first-party data. However, it also has some limitations and considerations that advertisers should be aware of:
Limited Inventory Outside of Amazon: While Amazon DSP allows you to reach audiences on and off the Amazon platform, a significant portion of its inventory is concentrated within Amazon properties. If you’re looking for a broader reach across the web, you might need to consider additional programmatic platforms to supplement your efforts.
Complex/Limited UI: Amazon DSP’s interface can be complex, especially for newcomers to programmatic advertising. Navigating through its various options and features can be challenging, and it may require a learning curve. This is largely due to Amazon having so many data segments you can access in addition to various O&O properties to target. Some advertisers have reported challenges in achieving full transparency into their Amazon DSP campaigns. Access to detailed data and insights may be limited compared to other platforms.
Minimum Budget Requirements: Amazon DSP has minimum budget requirements that may not be suitable for small businesses or advertisers with limited budgets. Advertisers should be prepared to invest a significant amount to access the platform’s full capabilities. For small advertisers (budgets under $10,000/mo) the DSP may not be an option for you.
Limited Creative Formats: While Amazon DSP supports various creative formats, it might not offer the same flexibility as other programmatic platforms. Advertisers looking for highly customized and interactive ad formats may find limitations.
It’s important to note that Amazon DSP primarily serves advertisers looking to reach audiences through Amazon’s properties and services. While it offers unique benefits within the Amazon ecosystem, it may not be the best choice for all types of advertisers or campaign objectives. Advertisers should carefully consider their specific needs and target audience when evaluating Amazon DSP and its competitors in the programmatic advertising space. If this isn’t your only DSP, you should consider reading our other article discussing running in multiple DSPs: https://populationscience.com/running-in-multiple-demand-side-platforms/