What is Amazon DSP?
DSP stands for "demand-side platform. This is a platform that allows companies to book placements for advertisements on websites. The ads can be displayed both on Amazon websites and on websites outside of Amazon. Since Amazon has access to data on customer buying behavior, you can target groups precisely and thus reach people who are highly likely to buy your product.
You can find out more about how DSP ads work and how they can be displayed here. In this case study, we focus exclusively on the analysis of the most relevant key figures in order to be able to make a statement about whether Amazon DSP is worthwhile. The analysis refers to a customer who uses BidX to display DSP ads.
Effects on impressions
The number of impressions can be significantly increased by using DSP. The impressions in the period under consideration have increased fivefold, from about 270K to 1.4 million. This enormous development took only about 2 weeks and shows the immense effect that the use of DSP can have.
How does DSP affect sales?
DSP Sales also increase the sales generated by advertisements. It is important that the merchant token is stored in the DSP Console so that no sale is assigned once to a sponsored ad and once to a DSP ad.
Total sales increased from 57K to 72K per day. This shows that attribution is set up cleanly and that DSP is indeed generating incremental sales.
RoAS and ACoS
RoAS is better for DSP ads than Sponsored Display Ads, but lower than Sponsored Brands and noticeably lower than Sponsored Product Ads.
With the use of DSP, which has a lower efficiency compared to Sponsored Product Ads, the overall performance is also slightly reduced. You have to weigh up here what the additional reach is worth to you and whether the general margin structure allows the use. If so, DSP offers an excellent opportunity to substantially increase your overall reach.
Conclusion
After analyzing the most relevant metrics, we can now answer the question we asked ourselves at the beginning. Is Amazon DSP worth it or not? Our answer: Yes, if you use DSP correctly!
By using DSP, you will "lose" some efficiency, but you will be enabled to gradually increase the reach of your product and your sales. You should be clear about what DSP ads are good for and if they are a good fit for your business.
Our recommendation is to first maximize the reach and efficiency of your sponsored ads and make sure they run profitably. Then you can use DSP to increase your market share, take sales away from competitors, and grow further and faster.
BidX as DSP Partner
DSP can be used either through a managed service from Amazon and a minimum budget (EUR 10,000 per month in the EU) or through a registered DSP partner, such as BidX. BidX does not charge a setup fee compared to other DSP partners. In addition, we have an extensive knowledge of DSP advertising, always keep an eye on the success of your advertising and make regular adjustments in the targeting of the campaigns if necessary.
