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  • Writer's pictureMileHigh Online

Why Every Seller Should Be Using Video Ads and Amazon DSP

For Sellers, Amazon offers an endless array of tools for generating brand awareness and sales. Yet, one of the most effective is Amazon video ads.

Although there are numerous ways to advertise on Amazon, video ads are surprisingly effective. In fact, Amazon says customers who see video ads are 3.5 times more likely to make a purchase! In other words, Amazon video ads are a medium Sellers can’t ignore. Effective video ads can help brands:

· Build customer confidence

· Stand out in competitive niches

· Demo products and showcase features

· Increase brand awareness

· And drive product sales

Plus, they’re massively engaging. In our own tests, for example, our video ads had 80% engagement rates – a rate that’s unheard of with display or text ads.

Another reason video ads are great: It’s easier than ever to build video ad campaigns, thanks to Amazon DSP.

The Amazon Demand-Side Platform (DSP) is a powerful tool that allows brands to buy ad space programmatically – the buying and placement is automated. Thanks to the platform’s reach, which includes on- and off-Amazon placements, brands can build video campaigns that influence every step of the sales funnel, from growing awareness, to driving sales.

In short, Amazon video ads with Amazon DSP are great for brand-building. Think you’re ready to start using Amazon DSP and video ads? Here are some important factors to consider.

What Is Amazon DSP?

Amazon DSP is a programmatic advertising solution for brands, that allows them to automate buying and placements for display, audio and video ads. Through the platform, ad placements are available on and off Amazon, including premium Amazon-owned sites like Goodreads, IMDb or affiliates like ESPN.

That means brands are no longer boxed in on Amazon. They can expand their reach outside the platform to connect with customers around the web.

Plus, Amazon DSP uses cost-per thousand impressions (CPM) bidding. Brands are effectively bidding on impressions, and that makes the platform a powerful awareness-growing tool. You aren’t paying for a click, rather you’re bidding on getting your ads seen by the most amount of people possible. In addition, brands have access to more personalized buying behavior of their customers (without sacrificing autonomy), which allows for more precise customer targeting than traditional pay-per-click (PPC) methods of advertising.

All of these reasons make DSP a powerful tool for brands, and some of the key advantages include:

· Huge Inventory – Through Amazon DSP, brands can place ads on and off Amazon, on premium websites, and in premium video content streams. They’re no longer limited to just Amazon.

· Targeting – Using DSP, brands can use their own first-party data to target customers or Amazon Audiences. With Audiences, brands narrow their reach to desired demographics, based on Amazon’s buyer behavior data.

· Ease of Use – Thanks to automation, Amazon DSP simplifies the buying of ad space, and the tracking and optimization of ad campaigns. Brands can scale campaigns more efficiently.

How to Use Ads on Amazon DSP

Through the DSP platform, brands have a range of advertising options, including display and video ads on and off Amazon, as well as audio ads on Amazon Music. Because the platform has such massive reach, brands can build campaigns that target customers at each stage of the sales funnel.

For example, by targeting look-a-like audiences, brands could potentially influence customers at the Awareness, Discovery and Consideration stages. Or with remarketing ads, purchased through the DSP, brands could drive sales and influence the Intent, Purchase and Loyalty stages. Essentially, there are two approaches to using display, audio and text ads with Amazon DSP:

· Awareness Building: These campaigns are designed to generate Details Page Views and impressions. The target audience is closer to the top of the sales funnel. · Sales Driven: These campaigns target users that have shown interest in the brand or its products. This type of ad is measured in revenue and advertising cost of sale (ACoS). Remarketing ads on DSP are an example of a sales-driven strategy.

With advertising solutions like Ad Console, brands are somewhat limited to customers within Amazon, with Sponsored Brand, Sponsored Product, and Sponsored Display type ads. Because of this, advertising impact is hindered; once customers leave Amazon, they are much more difficult to reach. And without being able to reach these customers, PPC campaigns tend to plateau in terms of impact and growth.

With DSP, brands have a powerful tool for building and scaling multi-channel campaigns which mesh nicely with traditional PPC campaigns on Amazon.

Video Ads Options on Amazon DSP

Through DSP, brands can automate bidding for three main types of video ads:

· In-Stream – These are ads that are embedded within video content, e.g. your ad shows before a movie trailer on IMDb.

· Out-Stream – This type of ad is essentially a video version of a display ad and is available on and off Amazon; e.g. your ad shows on Amazon’s Read All Reviews page or on a Box Office Mojo page.

· OTT – These are full-screen ads that appear within Amazon streams on connected TVs, e.g. your ad plays for Fire Stick TV users.

With all these options, brands can fine-tune their campaigns by where ads are shown, who they are shown to, and what type of ads are presented.

Why Every Brand Should Be Using Amazon DSP and Video Ads

In terms of advertising, video ads are one of the best brand-building tools available on Amazon. Video ads are more engaging, they quickly draw interest and they generate more interactions than traditional PPC ads.

Plus, video is one of the best product experience mediums available. Customers want to hold a product in their hands (which they can’t do, of course, when shopping online). Video is the next best thing; it helps customers understand products in ways that text or static display ads can’t. Content like 3D modeling, product demos and how-tos, for example, help customers “get” your products much more quickly.

Yet, video ads combined with Amazon DSP is really what makes this medium so important.

Together, these two tools can supercharge a brand’s marketing campaigns. Using DSP, brands can build campaigns which engage users at every step of the funnel, and combined with traditional PPC Ad Console campaigns, brands can maximize sales and market share.

Ultimately, the reach of Amazon DSP is revolutionary, and is something brands should be taking advantage of immediately.

Transform your marketing campaigns with Amazon DSP. Need help? Mile High Online can assist you. We are a full-service Amazon Brand Management agency, with in-depth experience of Amazon Ad Console and DSP.


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