Amazon Dsp Performance Improvement Strategies

The Top 5 Lessons from Managing a $10M Budget in Amazon's Demand-Side Platform (DSP) Over the last 18 months, I've had the opportunity to manage a $10M advertising budget on Amazon's DSP. Here's a rundown of my top five lessons for those looking to optimize their digital advertising strategies: 🔢 1. Conduct Brand Lift Studies for Measuring Awareness Sales metrics and Return on Ad Spend (ROAS) are great for understanding conversion performance, but fall short when evaluating brand awareness tactics. To get a true reading on this, utilize Amazon's shopper survey panel. It polls thousands of users within your target audiences, gauging any shift in awareness post-ad exposure. 🎯 2. Prioritize Ad Viewability If your ad's viewability rate is below 50%, you're essentially throwing half your ad spend in the dumpster and setting it on fire. You can tweak your viewability settings under 'Targeting' in 'Line Item Settings.' Yes, you might get fewer impressions and higher Cost Per Mille (CPM), but it's better to pay for higher quality impressions rather than to pay for impressions that are never seen. 📊 3. Refine Negative Audience Targeting with "Untargeted Audience" Reports Think of Audience reports as DSP's version of Search Term Reports. These reports break down audience performance by age, demographic, and lifestyle, among other metrics. For instance, we found Android users less likely to buy our premium products compared to iPhone users. Refining our strategy through audience negation led to improved Click-Through Rates and ROAS. 🛒 4. Leverage Amazon's Native Ecosystem I don't allocate funds to less effective tactics unless top-performing strategies are maxed out. Amazon display ads engage audiences already in a shopping mindset, leading to higher CTR, Conversion Rates (CVR), and ROAS. For directing traffic to Direct-To-Consumer (DTC) sites, platforms like Facebook, Instagram, and Google Ads tend to be more effective. 🔄 5. Adopt a Full-Funnel Strategy One of DSP's unique features is its access to Amazon's first-party data, enabling us to craft strategies that guide customers through the awareness, consideration, and conversion stages. This has proven to be an unmatched method for acquiring new customers, particularly for larger brands with wide recognition. I'm now realizing I should have made this my "Top 10 Lessons Learned," but I'll save additional insights for future posts to keep this one concise. Don't forget to follow so you don't miss it! 🙂 #amazonads #amazonadvertising #amazondsp #dsp #digitalmarketing #advertisingstrategies #CTR #ROAS #ppc #CVR #displayadvertising

Amazon DSP | Top Mistakes Brands Make 📚 Lack of Education Many brands underestimate what Amazon DSP can truly achieve. Misunderstandings about its capabilities often lead to inflated expectations and misplaced trust. 📊Lack of Solid Foundation / Structure DSP can be as granular as Amazon Advertising. We segment our orders similar to our PPC campaigns in order to provide incredibly clear reporting around each stage of the funnel, and the core KPI;s for each(NTB, retargeting, competitor targeting, and new customer acquisition..) - We typically see a lack of granularity can lead to wasted spend across audiences that do not convert and will cause eCPMs and eCPP to inflate (meaning the cost to acquire purchases will go up and the conversion rate will go down) - That being said, overly granular setup can cause issues with visibility across available inventory placements and issues with spending budgets fully. 🎨 Underwhelming Creative DSP’s upper-funnel power lies in targeting specific audiences with tailored creatives. This can be a huge advantage over PPC, allowing your ad to drive connection, and a much higher CTR / CVR. 🔬 Lack of Transparency Amazon DSP comes with an overwhelming amount of date, even more so when you layer in AMC. Most brands don’t get access to all of this data, whether due to their agency / SAAS partner or just lack of understanding of the platform. This is a huge miss. This data can REALLY help curate strategy for your brand when shared transparently. Examples - Path to purchase, ad type overlap, SNS insights, audience insights Other quick tips from the btr media team - 🔶 Amazon sellers need to embrace Amazon O&O properties and stop jumping into DSP wanting to go straight to 3rd party placements. Amazon O&O properties are powerful with their first party data and trusted by shoppers. Unless you're a nonendemic brand, you should always start with Amazon O&O. 🔶 DSP should be used for products that are retail-ready and not ones that are looking to be picked up off of the ground. - Audience availability for low selling/trending products will be small compared to retail ready/hero products 🔶 Budgets are also an issue - either over-investing or underinvesting best practices for budgets are 10-25% of search spend for endemic advertisers 🔶 Remarketing is used to capture traffic that flows through prospecting without converting. - Proper exclusions and targeting will ensure that no traffic is missed from one funnel step down to the next Shoutout to Justin Nuckols and Austin Hoggatt for the insights!

New Update: Amazon DSP campaign and creative APIs are now generally available. This is a build on many of the announcements from #unBoxed2024 What is it? This new feature allows users to create, read, and update their Amazon DSP campaigns, ad groups, targets, and creatives through a programmatic interface. How does it work? These APIs enable technology providers and advertisers to develop custom experiences within their own applications and seamlessly run Amazon DSP campaigns within existing workflows. The new APIs can be used in conjunction with existing audience and deal resources, providing a comprehensive toolkit for end-to-end campaign management. Users can now store Amazon DSP campaign data locally, simplify campaign and creative creation, and automate optimizations to maximize campaign performance. Why should I care? This update is a game-changer for Amazon DSP users. Here's why it matters: 1. Efficiency boost: Streamline your campaign and creative creation process, significantly reducing activation time for new campaigns. 2. Better data control: Store and manage Amazon DSP campaign data locally, giving you more control over your data and analytics. 3. Custom optimization: Automate optimizations across campaign, ad group, and targeting settings, allowing for data-driven decisions on bids and budgets. 4. Seamless integration: Easily integrate Amazon DSP into your existing tech stack, enabling you to track campaigns in your own tools and sync campaign metadata with your data storage solutions. 5. Performance improvement: Experiment with new audiences and quickly remove underperforming ones to maximize campaign performance. 6. Real-time adjustments: Automatically adjust bids and budgets in real-time, ensuring your campaigns are always performing at their best. Bottom line: Whether you're a large agency or tech partner looking to integrate Amazon DSP more deeply into your operations or an individual advertiser seeking to automate and optimize your campaigns, these new APIs offer exciting possibilities to enhance your advertising efforts on Amazon's platform. Want to check it out? You can learn more about these new features at the Amazon Ads website (https://lnkd.in/gESdMWhy). For those ready to dive in, check out the developer guide (https://lnkd.in/gQAPRdcs) and reference documentation (https://lnkd.in/gBV-BbVb) to start leveraging these powerful new APIs in your advertising strategy.