Amazon DSP: Segmentation as the Key to Success

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Amazon DSP: Segmentation as the Key to Success

If there is something that defines Amazon as a brand, it is its disruptive capacity. Since its creation in 1994, the e-commerce giant has completely revolutionized global consumer habits, thanks to its ability to simplify electronic sales processes . As a result, in the 13 years of Amazon Prime’s operation, the service has accumulated more than 100 million subscribers, according to figures released by its CEO, Jeff Bezos, in the company’s annual letter to shareholders .These figures are explained by the rapid evolution of its ecosystem , which has positioned Amazon as a powerful content support through its different platforms (Amazon Prime Video, Kindle and Fire TV). By creating its own media , Amazon has managed to break into the online advertising how do i call a number in france with increasing importance, as evidenced by the 40% growth in the company’s advertising revenue in 2019 over the previous year.And, how could it be otherwise, programmatic advertising makes its way among the options available in the offer on Amazon Advertising. The DSP (Demand Side Platform) developed by Amazon is an advantage over its direct competitors thanks to its ability to feed back its own business model . In other words, the traffic that Amazon generates through its DSP is directed directly to your domain while generating very useful transactional information for potential advertisers.

Developing Amazon DSP Programmatic Advertising
According to data from the Business Insider Intelligence report The Rise of Amazon Advertising , the growth of Amazon’s programmatic advertising platform places the brand as the third largest agent in terms of investment, behind Google and Facebook, with a total of 4 , $ 7 million in advertising revenue .
Capture: The Rise of Amazon Advertising from Business Insider Intelligence
Capture: The Rise of Amazon Advertising from Business Insider Intelligence
In 2018, the three Amazon business units dedicated to online advertising were merged to give way to a single one, Amazon Advertising , with the aim of making it easier for advertisers to purchase advertising space. In addition, unlike its main competitors, Amazon launched its own DSP , driven by the synergies established between its different brands.One of the main strengths of Amazon DSP is the ability to create campaigns by two different types of advertisers: endemic and non-endemic . This differentiation refers to the ability of the DSP to create programmatic campaigns both on Amazon’s own websites and on external media. In this way, Amazon’s advertising tool has the ability to impact users through the different phases of the customer journey . On the one hand, as we have already advanced, Amazon DSP allows you to link advertisers’ campaigns with activity on their platforms , which represents a significant competitive advantage over other DSPs. Thus, users can be impacted from the sales platform itself, favoring cross selling strategies at the same time . On the other hand, the platform also offers the possibility of executing video and display campaigns without the need to sell products on the Marketplace , an option chosen by 16% of advertisers according to the Amazon Advertising Survey 2020 report by Marketing Land.

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The audience segmentation available in Amazon DSP is a significant advantage for both  gulf email list  advertisers with products available on the sales platform and for third parties, allowing them to go one step further in optimizing the results of their programmatic campaigns. The extensive knowledge it brings about the users of its platforms is the key to its success.PILAR MARTÍNEZ , SENIOR DIGITAL MARKETING CONSULTANT AT LABELIUIn both cases, the audience segmentation offered by the Amazon advertising platform when designing campaigns is a determining element in the success of the platform. Amazon’s database includes data on consumer habits , which contributes to the creation of lower funner audiences. In other words, the data based on the purchasing trends of potential customers is a determining factor in the success of Amazon’s DSP.Attribution in Amazon DSP
Another of the main advantages of programmatic advertising on Amazon is the clarity of its metrics. As we have seen, the Amazon DSP allows you to create campaigns both in the platform’s ecosystem and in third-party spaces and, in both cases, the ad attribution model will be different.Ads of products sold on Amazon : Through the product code that the advertiser provides to Amazon, the platform tracks based on the impressions that the ad accumulates in the following 14 days.
Product ads in external spaces: Amazon DSP provides data on the number of conversions attributed to each ad, although the amount and type of sale does not appear in this case.
The diversity of attribution metrics makes it easy to optimize campaigns quickly and efficiently. This fact, together with the audience segmentation possibilities offered by Amazon DSP, make the difference when building campaigns based on a global knowledge of the environment.

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