DSP stands for “Demand-side Platform” and is a CPM (Cost Per Thousand) model, which is different from PPC (Pay per click). With a CPM model, your company will pay based on the impressions from the shoppers and not based on the clicks on the ad
There’s one other important difference to mention:
The cost: with a CPM model the advertising campaign has higher costs, this means that your company has to consider investing a high budget from the beginning of the campaign.
With Amazon DSP you have the possibility to buy ads both on and off Amazon.
Talking about off Amazon ads, you also have the possibility to choose between these ad types:
Display Ads that we can divide in:
Video Ads: with this ad type, Amazon allows you to create high-quality videos that will be published on Amazon, PrimeVideo, FireTV, IMDB, Twitch, and other websites. There are two types of video ads you can find on these platforms:
Amazon DSP is an amazing platform that helps you reach a wider audience. In fact, as we said before, you can buy ads both on and off Amazon, and this can help sellers reach a very specific and high-converting audience.
You also have so much data at your disposal. In fact, Amazon has everyone’s shopping behavior information, with which it can let you understand lifestyle choices, interests, and demographics of customers. So, all of this customer performance data will allow you to create an effective campaign.