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Choosing Between Sponsored Display and DSP Advertising on Amazon: A Seller's Guide

Advertising on Amazon has become an essential strategy for sellers to increase visibility, drive sales, and ultimately grow their business. With a plethora of advertising options available, it's crucial for sellers to understand the differences between various ad formats and when to utilize each to maximize their ROI. In this post, we'll explore the distinctions between Sponsored Display and Amazon DSP advertising and offer insights into when to use each.

Sponsored Display: Targeted Advertising for Any Budget

Sponsored Display is a versatile advertising solution tailored for advertisers of all sizes and budgets. It empowers sellers to create campaigns aligned with their specific business objectives, whether it's increasing brand awareness, driving traffic to product pages, or boosting sales.

Key Features of Sponsored Display:

Audience Targeting: Sponsored Display allows sellers to target audiences based on various criteria, such as interests, behaviors, or purchase intent. For instance, sellers can target users who are "in-market for pet food," effectively reaching potential customers who are actively searching for pet-related products.

Wide Reach: One of the significant advantages of Sponsored Display is its expansive reach. Advertisers can connect with audiences not only within the Amazon ecosystem but also across thousands of AMS-owned apps and websites, expanding potential reach across the web. 

Reporting: Sponsored Display provides standard Amazon campaign analytics, offering insights into campaign performance metrics such as clicks, impressions, and conversions. This enables sellers to assess the effectiveness of their campaigns and make data-driven decisions for optimization.

Accessibility: Sponsored Display campaigns have no minimum spend requirement, making it accessible to sellers with varying budgets. It's easy to get started, allowing even novice advertisers to launch campaigns quickly and efficiently.

When to Use Sponsored Display:

Broad Audience Targeting: Sponsored Display is ideal for reaching a broad audience base with general interests or purchase intent related to the seller's products.

Flexible Budget: Sellers with limited budgets or those looking for a cost-effective advertising solution can benefit from Sponsored Display's affordability and no minimum spend requirement.

Simple Campaign Goals: For sellers focused on straightforward campaign objectives such as brand awareness or product promotion, Sponsored Display offers a streamlined approach to advertising on Amazon.

Amazon DSP: Precision Targeting for Advanced Campaigns

Amazon DSP (Demand-Side Platform) provides advanced advertising capabilities, offering brands access to programmatic buying opportunities and sophisticated targeting options. It's designed for advertisers seeking to optimize their campaigns with precision targeting and comprehensive measurement solutions.

Key Features of Amazon DSP:

Advanced Targeting: Amazon DSP enables advertisers to target specific audiences based on detailed criteria, including demographics, interests, and purchasing behavior. For example, advertisers can target users who viewed your ad in the last 30 days but who did not purchase, making it possible to capture shoppers who may be interested but who have not yet purchased. 

Comprehensive Reporting: Unlike Sponsored Display, Amazon DSP offers in-depth audience reports and comparative analysis tools. Advertisers can evaluate campaign performance across layered audiences, analyze click-through rates (CTR), and assess efficiency metrics to refine targeting strategies.

First-Party Data Integration: Advertisers can import their brand's first-party data into Amazon DSP, leveraging valuable customer insights to enhance targeting precision and campaign effectiveness. Additionally, the platform allows for overlap reports, facilitating audience engagement optimization.

When to Use Amazon DSP:

Granular Targeting Needs: For advertisers requiring precise audience segmentation and targeting based on specific demographics, behaviors, or purchasing habits, Amazon DSP provides the necessary tools and capabilities.

Advanced Analytics Requirements: Advertisers seeking comprehensive reporting and in-depth analysis of campaign performance, audience engagement, and efficiency metrics can leverage Amazon DSP's robust reporting features.

Amazon DSP and Sellozo

For those who don’t meet the minimum spend requirements, you can partner with Sellozo in order to access the DSP ad products. We offer a DSP managed ads plan that provides you with an ad specialist who will work with you to create an ad strategy based on your needs and will create and manage your DSP ads for you. Talk to our sales team to learn more.

In summary, both Sponsored Display and Amazon DSP offer valuable advertising solutions for sellers on Amazon, catering to different needs and objectives. Sponsored Display is accessible, budget-friendly, and suitable for reaching a broad audience, while Amazon DSP provides advanced targeting options, comprehensive analytics, and strategic support for advertisers with more sophisticated campaign requirements. By understanding the distinct features and strengths of each advertising platform, sellers can make informed decisions to optimize their Amazon advertising strategies and achieve their business goals effectively.


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