Aiming to go big on Amazon? Running a single advertising strategy may not be enough! A combination of different advertising frameworks is what is required in the current times to succeed on Amazon. That’s where a gameplay of Amazon Sponsored Ads and Amazon Demand Side Platform comes in.
In the highly competitive Amazon marketplace ecosystem, you wouldn’t want to miss the opportunity to target even a fraction of your target audience. That’s where the real challenge of running Sponsored Ads kicks in. While Sponsored Ads actively capture shoppers looking for your product type within the Amazon marketplace, it fails to extend beyond the marketplace to reach customers who haven’t looked up your product on Amazon yet.
Enter Amazon DSP advertising! Now imagine an advertising strategy that not only targets your niche audience within the Amazon marketplace, but also drives traffic from third-party apps and websites. Yes, that’s the wonder of Amazon DSP targeting. When planned strategically, DSP ads are highly efficient in capturing audiences both on and off Amazon platforms to help sellers not leave a single stone unturned to drive conversions and maximize sales.
Want to know more about the Amazon DSP platform? Read here to learn more about what is Amazon DSP and 5 Amazon DSP Strategies to Retarget Shoppers and Boost Conversions.
So stay tuned if you’re interested in learning the secret recipe of combining Amazon Sponsored Ads along with Amazon DSP ads for maximized Amazon ROI and sustainable growth.
Let’s understand this interesting approach step-by-step now!
1) Understanding the Difference Between Amazon DSP Targeting and Sponsored Ads
- Sponsored Ads (Sponsored Products, Sponsored Brands, Sponsored Display):
These ads appear directly in Amazon search results and product detail pages and follow a pay-per-click pattern. Sponsored Ads are keyword-driven and perfect for capturing high-intent shoppers who are ready to buy. - Amazon DSP Ads: Amazon DSP Advertising uses Amazon’s first-party shopper data to serve programmatic ads across Amazon-owned properties like IMDb, Amazon Music, Twitch, Prime, etc., and third-party sites. The Amazon DSP platform is ideal for boosting brand awareness, retargeting, and expanding reach beyond Amazon
The secret recipe? Combine the two ad types together to create a full-funnel marketing strategy to leverage Sponsored Ads for converting shoppers already searching, while DSP ads reach, persuade, and retarget those who aren’t yet ready to click “Buy.”
2) Building a Full-Funnel Strategy
Think of recreating your marketing roadmap in three stages:
- Boosting Awareness: Use Amazon DSP targeting to reach new audiences across the web and introduce them to your brand.
- Reintroducing Your Brand: Use Amazon DSP retargeting and Sponsored Brands to re-engage shoppers who visited your store but didn’t purchase.
- Driving Conversions: Use Sponsored Products to capture ready-to-buy shoppers searching on Amazon.
By aligning Sponsored Ads and DSP to different funnel stages, you create a seamless shopper journey that maximizes both traffic and sales.
3) Drive Traffic to Your Storefront with Amazon DSP Ads and Retarget with Sponsored Ads
Once you reach your niche audience, using Amazon DSP targeting, driving them to your Amazon storefront becomes easier. Using persuasive ad copy with engaging visuals and creatives helps attract the audience and triggers clicks, ultimately driving traffic to your Amazon storefront.
Now that the shoppers have landed on your storefront, you can retarget them with Sponsored Display or Sponsored Products, reminding them to complete their purchase. This combination increases both conversion rates and average order value.
4) Balance Budget Allocation
Do not make the same mistake as most sellers, spending the entire ad budget on just one channel. For maximum ROI, split your investment strategically:
- Spend 60–70% of your total ad budget on Sponsored Ads for targeting direct sales.
- 30–40% of the remaining ad spend must be directed towards DSP ads for fostering awareness and retargeting.
This ensures you’re capturing immediate revenue while also building a long-term customer channel.
5) Using Data to Refine Campaigns
Both Sponsored Ads and DSP come with deep analytics and powerful reporting tools. Track key metrics and not just conversions and impressions. A few KPIs include:
- New-to-brand sales for measuring DSP awareness campaign performances
- Return on Ad Spend (ROAS) across both platforms.
- Path-to-purchase insights showing how shoppers interact with your ads before converting.
Use these insights tactfully to shift budget, adjust targeting, and improve creatives over time.
6) Creative Optimization
Ad creatives are the foundation of running a successful marketing campaign. The following tips can come in handy while creating engaging ad copies and creatives:
- Use high-quality images and lifestyle visuals for DSP ads to inspire.
- Write keyword-rich and persuasive copy for Sponsored Ads to capture intent.
- Refresh creatives regularly to avoid ad fatigue.
Compelling ad copies and engaging visuals ensure your ads reach the right audience while also convincing them to click and purchase.
The secret to Amazon advertising is understanding the pros of both Sponsored and DSP ads and blending them into a single powerful strategy to extract the maximum benefit from the two approaches.
Sponsored Ads capture shoppers at the bottom of the funnel, while DSP fills the top and middle, keeping your brand visible long after shoppers leave or visit Amazon.
For sellers serious about scaling, this combination is the key to maximizing ROI, increasing traffic, and building a brand that lasts.
At Krolog, we help brands craft data-driven Amazon DSP strategies along with Sponsored Ad campaigns that generate conversions. If you’re ready to unlock the full power of Amazon advertising, now’s the time to combine the best of both worlds by connecting with Krolog for expert Amazon DSP services and combined marketing strategies.
Connect with us now to begin your journey to Amazon success!
Read here to learn more about the DSP program at Amazon and how to leverage it to drive traffic to your Amazon Storefront.
