What is programmatic advertising?
From the advertiser’s point of view, this is the most efficient way (so far) to automate the purchase of online advertising space. Thanks to Machine Learning, big data and artificial intelligence – those terms that have been very trendy for the past few years – it is now much easier to reach the right audiences, at the right time and in the right place.
How? Thanks to a more traditional concept:Supply and demand On one hand , the SSPs (Supply Side Platforms) offer the inventory (advertising spaces) of the different publishers; and on the other handDSPs (Demand Side Platforms) facilitate the purchase of these advertising spaces through an automatic bidding system. In the middle is Ad Exchange, the market where they both interact .
With several DSPs available, what is the differentiator of Amazon DSP?
To start with, Amazon is the leading online marketplace in Spain, with a consumer penetration rate of 80%. (well above the rest of the marketplaces, which are between 19% and 50%)*. In addition, Amazon is a complete ecosystem that contains user data across its entire customer journey:from the moment you start browsing, the number of times you visit a certain category, study the reviews on different items, add products to your wish list, make a purchase and even subscribe. All this information is organized and classified into hundreds of audiences available to advertisers, allowing them not only to optimize the targeting relevance of their campaigns, but also to track user conversion, if the advertiser sells on Amazon. This is not possible through the use of other DSPs. Not to mention that Amazon is not just e-commerce: its audiences also come from Prime Video, Twitch, and we will likely see more environments like Amazon Music included in the DSP soon.
Audience Builder and Overlap
In addition to the hundreds of categorized audiences available on Amazon DSP, it also provides a self-service tool where users can create ad-hoc audiences.. We can compose them based on the products we want, brands, similar products, visits to Amazon Stores, interactions on Amazon Prime Video, and even audiences on Twitch from specific streamers, channels, or category. As if that werent enough , it also allows us to discover new ones through the “overlap report“: from a given audience (for example, the one that works best for us), we can download a report with other related audiences sorted by level of affinity and size.
Amazon DSP not only offers third-party advertising spaces (Open Exchange), but also its own exclusive inventory accessible only through its DSP.. The ads will appear on Amazon’s e-commerce platform, reaching all of us who visit their website or app on a daily basis. Additionally, if desired, campaigns with video ads can be run on Twitch.
“Partner in crime ” of Sponsored Ads for Full Funnel strategies
If we compare it to other Amazon Advertising products like Sponsored Ads – a lower-funnel PPC advertising solution through keywords – Amazon DSP is the perfect complement. Sponsored Ads focuses on targeting users who are already in the consideration phase and have purchase intent by displaying ads within the Amazon e-commerce environment. On the other hand , Amazon DSP is responsible for fueling the funnel from the beginningby focusing on the audiences they want to reach and finding them both within and outside of Amazon. Whether they are actively searching or not. And, of course, with the ability to create retargeting campaigns for those users who have already shown interest in our products or brand.
If there’s one thing Amazon prides itself on, it’s being “peculiar”. And it couldn’t be any different with Amazon DSP, where it not only offers industry-standard metrics, (reachimpressions, CTR, etc. ) but also includes all the metrics that the Amazon ecosystem can offer, such as page views, product review views, sales, orders, and new customer purchases for the brand (“New to Brand”), users subscribed to products on a recurring basis (“Subscribe & Save”), and so on. Amazon DSP provides transparent reporting of your campaign results, from the awareness phase to conversion or loyalty.
*Fuente: Statista 20