Understanding Amazon Ads: Demand-Side Platform, Video Ads & Amazon Stores
In the world of e-commerce, mastering Amazon’s ad platform can be a powerful way to grow your brand and increase sales.
In this post, we’ll focus on three advanced Amazon ad types: Amazon DSP (Demand-Side Platform), Video Ads, and Amazon Stores.
These tools go beyond traditional Amazon ads by helping you reach wider audiences, engage customers with compelling content, and provide a branded shopping experience.
Here’s what we’ll cover:
- Amazon DSP (Demand-Side Platform)
- Video Ads
- Amazon Stores
By the end, you’ll have a clearer idea of how these ad formats work, their pricing models, and when to use them for better results.
1. Amazon DSP (Demand-Side Platform): Reaching Audiences Beyond Amazon
What Is Amazon DSP?
Amazon DSP (Demand-Side Platform) is a programmatic advertising tool that lets you buy display, video, and audio ads both on Amazon and across other websites and platforms.
It’s different from standard Amazon ads because it helps you reach potential customers even when they’re not shopping on Amazon.
Pricing Model: Cost-Per-Impression (CPM)
Amazon DSP uses a Cost-Per-Impression (CPM) model. This means you’re charged based on how many times your ad is displayed (for every 1,000 impressions), rather than paying per click.
It’s best for campaigns that focus on increasing brand visibility, rather than driving immediate sales.
How Amazon DSP Works
- Programmatic Ad Buying: The platform automatically purchases ad inventory based on audience data.
- Targeting: DSP uses Amazon’s data to target specific audience segments—like customers who’ve shown interest in your products or have similar shopping behavior.
- Reach: Ads can be shown on Amazon’s own platforms (like Fire TV) and across third-party websites, apps, and devices.
Key Features of Amazon DSP
- Retargeting: You can reach people who viewed your products but didn’t buy.
- Wider Reach: Ads appear across Amazon’s network and external platforms.
- Customizable Ads: Use display, video, or audio ads depending on your goals.
Best Practices for Amazon DSP
- Focus on Retargeting: Re-engage customers who’ve already interacted with your brand.
- Use Audience Data: Amazon’s first-party data can help you target the right audience more accurately.
- Optimize for Viewability: Ensure your ads are in visible placements to maximize impact.
When to Use Amazon DSP
Amazon DSP is ideal for brands that want to expand their reach beyond Amazon and leverage retargeting strategies.
It’s especially useful if you’re running omnichannel campaigns and need to engage customers wherever they are online.
2. Video Ads: Telling Your Brand Story with Visuals
What Are Amazon Video Ads?
Video ads are an engaging way to connect with customers by showing off your products or brand through visual storytelling.
These ads appear on Amazon’s site and app, as well as across its wider ad network (think IMDb, Twitch, and Fire TV).
Pricing Model: Cost-Per-Thousand Impressions (CPM)
Amazon Video Ads follow a Cost-Per-Thousand Impressions (CPM) model, meaning you pay for every 1,000 views your ad receives.
Video ads are more about creating awareness and engagement rather than direct sales.
How Amazon Video Ads Work
- Placement: These ads show up in search results, product pages, and on platforms like IMDb, Fire TV, and Twitch.
- Targeting: Use Amazon’s customer data to target your ads based on shopping behavior, demographics, or interests.
- Cross-Platform Reach: Your video can appear on Amazon-owned sites and external sites, maximizing visibility.
Key Features of Amazon Video Ads
- High Engagement: Video is a powerful medium for grabbing attention quickly.
- Multi-Platform Reach: Video ads can appear across Amazon’s network of sites and devices, increasing exposure.
- Creative Flexibility: You can use short clips, longer videos, or trailers depending on the context.
Best Practices for Amazon Video Ads
- Keep It Short and Focused: Aim for 15-30 second videos that clearly communicate your product’s benefits.
- Tell a Story: Use your video to connect with customers emotionally or demonstrate how your product solves a problem.
- Optimize for Mobile: Ensure your videos look great on smaller screens, as many users will view them on mobile devices.
When to Use Amazon Video Ads
Video ads are perfect when you want to increase brand awareness or explain your product in a visually compelling way.
They work especially well if you’re launching a new product or campaign and want to make a memorable first impression.
3. Amazon Stores: Creating a Branded Shopping Experience
What Is an Amazon Store?
Amazon Stores allow brands to create a customized shopping experience with multiple pages, product collections, and brand elements.
It’s a great way to showcase your brand and provide customers with a more organized shopping journey.
While creating a Store is free, many brands use Sponsored Brands ads or other paid ads to drive traffic to their Amazon Store.
Pricing Model: Free (But Linked to Ad Spend)
Creating an Amazon Store is free, but most brands spend on ads to promote it. The ads help you attract customers and encourage them to explore your Store.
How Amazon Stores Work
- Customization: You can design your Store to reflect your brand with logos, product categories, and curated collections.
- Multi-Page Layout: Stores can have multiple pages, allowing you to organize your products effectively.
- Analytics: Amazon provides insights into how people interact with your Store, including traffic sources and sales data.
Key Features of Amazon Stores
- Brand Control: You have the ability to create a fully branded shopping experience.
- Product Showcasing: Highlight different products or categories based on what’s trending or on sale.
- Performance Data: Use Amazon’s analytics to track visitor behavior and optimize your Store layout accordingly.
Best Practices for Amazon Stores
- Promote It with Ads: Use Sponsored Brands ads to drive traffic to your Store and keep customers coming back.
- Organize Products Clearly: Make it easy for customers to find what they’re looking for by categorizing products into collections.
- Keep It Fresh: Regularly update your Store with new products, promotions, or seasonal content.
When to Use Amazon Stores
Amazon Stores are ideal for brands that want to provide a curated and visually appealing shopping experience.
They’re especially effective for showcasing multiple products or product lines and for driving long-term brand loyalty.
Wrapping Up: A Balanced Amazon Ad Strategy
In this guide, we’ve covered three powerful Amazon ad tools:
- Amazon DSP: Reach customers across the web with targeted display, video, and audio ads.
- Video Ads: Build brand awareness and engagement with compelling video content.
- Amazon Stores: Create a customized shopping experience to showcase your products and build brand loyalty.
By using these tools effectively, you can extend your brand’s reach, engage potential buyers more deeply, and drive more sales on and off Amazon.
For more resources on how to use these tools, check out Amazon’s official guides for Amazon DSP and Amazon Stores.
