Amazon DSP

Amazon DSP

A DSP, or demand-side platform, is software that allows advertisers to automate buying inventory from publishers' sites,
and manage multiple Ad Exchanges through a single interface. Basically, advertisers can bid on and optimize ads all in one
place.

Amazon Ads audience solutions

● Amazon DSP enables advertisers to leverage Amazon’s first-party insights based on billions of observed shopping patterns across the
customer decision journey. We believe these insights are the best indicators for reaching the most relevant audiences for your brand.

● To reach the most relevant audience, advertisers can leverage both Amazon’s audiences and their own audiences, by using pixels, a data
management platform (DMP), hashed audiences, or 3rd party integrators.

● Amazon DSP provides audience insights and robust performance analytics pre-, during, and post-campaigns.

● Amazon Ads' deep reporting analysis includes key metrics such as add-to-cart rate, total purchases, and product units sold for brands that
sell in Amazon's store, as well as pixel conversion rate, and video completion rate for brands that do not sell on Amazon.
 Comprehensive & unique supply
Amazon DSP allows you access to supply that you cannot access via other DSPs

Advertisers can access comprehensive and unique inventory from Amazon owned-and-operated (O&O), third-party
exchanges, Amazon Publisher Services (APS), and private marketplaces, to boost targeted reach of Amazon shoppers
whenever and wherever they shop or consume content.

The Amazon DSP enables advertisers to build cross-device campaigns, which is essential today given how cross-
device shopping is the new normal.

Advertisers can achieve marketing goals by reaching Amazon shoppers at scale wherever they are: whether they are on
or off Amazon.

Brand safeguards
Amazon DSP uses both Amazon's own and third-party solutions, from manual site reviews to real-time bid evaluation, to
uphold quality standards and brand safety.

Amazon DSP monitors for brand safety, traffic quality, viewability and third-party supply quality.
 Campaign creation & optimization
Advertisers can optimize their campaigns to reach advertising and business goals. The Amazon DSP offers manual
and automatic optimizations.
Automatic optimizations: The system will adjust bids to serve through the best formats and the best supply sources
and sites. Additionally, the Amazon DSP optimization engine analyzes every impression against your goal in real-
time. This can apply up to 500,000 predictors, which gives you Amazon first-party insights based on observed
shopping patterns. Amazon's DSP also has an automated optimization feature which dynamically updates budgets
according to a campaign goal.
Manual optimizations: Advertisers can manually optimize various levers of a campaign, including budgets,
audiences, bids, frequency caps, and supply. Advertisers can leverage display, video and mobile ad types, as well
as creative types such as:
-> display ads with e-commerce creative
-> image ads
-> video ads
-> video creative builder ad units
-> third-party served ads
Amazon DSP Programmatic Auctions
Types of auctions
1st Price auctions
1st Price auctions
 Bid shading
Bid shading can help prevent advertisers from overbidding on ad impressions that can potentially be won at a lower
price. To optimize bids, algorithms account for several factors including historical win rates, clearing prices, declared
auction type, and other supply-side information.

Types of campaigns

Link-in campaigns direct customers to your brand's product detail pages on Amazon, or another Amazon destination.
Link-out campaign allows you to leverage the Amazon DSP to direct audiences to your brand’s landing page off of
Amazon.
Amazon DSP Hierarchy
Amazon DSP Line item type
Amazon DSP Hierarchy
 Amazon DSP supply sources

Auction Dynamics
The bid strategy you choose can impact the amount you pay for an impression in auction environments. So, when
you are formulating your campaign bid strategy, it’s important to understand how different programmatic auctions
function and the processes that take place when multiple advertisers bid for an impression.

You have the option to leverage machine-learning algorithms with powerful predictive models in your Amazon
DSP campaigns. These models estimate the likelihood of each ad impression driving your conversion events.
Utilizing these algorithms can help you focus on the ad strategies that are most likely to help you reach your
campaign goals.
 Demand-side platform (DSP)
Demand-side platform (DSP) is a tool where advertisers buy ads in an automated fashion. DSPs are on the buy-side of
programmatic auctions. You choose your bidding strategy in DSPs depending on your campaign’s goal.

Supply-side platform (SSP)

A supply-side platform (SSP) is a tool where publishers sell their ad inventory in an

automated fashion. SSPs are on the sell-side of programmatic auctions.

Bid request
As a user loads a webpage, a bid request is created and forwarded to one of many auction houses (SSPs) across
the internet.
 Auction buying
Auction buying is non-guaranteed buying. The advertiser participates in an auction and bids in real time on impression
opportunities. Submitting a bid does not guarantee that an impression will be won and delivered. This is called “real-
time bidding.”

Model-predicted action
Model-predicted action is the estimated likelihood that an impression will result in a conversion .

Bid optimization models

Bid optimization models are algorithms that automatically adjust bids for impressions that are more likely to improve your
selected goal KPI.
 Amazon DSP Bid strategy
In the Amazon DSP, you have the option to choose a bid strategy that leverages machine-learning algorithms on your
behalf. Your selected bid strategy determines how Amazon Ads ranks ads and bids for impressions. Advertisers can
choose between a delivery or performance-focused strategy. Both bid strategies utilize model-predicted action generated
by Amazon’s bid optimization models.

Base supply bid

Initial bid supplied by the advertiser to act as a starting bid for performance and delivery modifiers to modify. Base bid is the
primary control when selecting “maximize performance” bid strategy.

Max supply bid

Max bid is the maximum amount that can be bid for an ad. When computing the final bid for an ad based on performance
and delivery modifiers, the total amount cannot be greater than the max bid. Max bid is the primary control when selecting
“while spending full budget, maximize performance” bid strategy.
Thank You!