The advancement of eCommerce technology has allowed advertisers and brands to advertise on Amazon effectively. Among those ways are by advertising through Amazon Sponsored Display and Amazon DSP (Demand-Side Platform). Known for increasing brand visibility, these ad types have respective features that allow brands to stay on top of their game.
While both ad types are known for driving more success to the brands that utilize them, Sponsored Display and Amazon DSP ads differ in terms of the ad solutions they can offer to advertisers looking to try different strategies on and off Amazon.
The Differences Between Amazon Sponsored Display and Amazon DSP
To succeed in Amazon, not only should advertisers take advantage of what Amazon already offers within its eCommerce platform, but also the various platforms outside of it. These platforms include Fire TV, streaming services, Kindle, Amazon Live, and other related apps. While both ad types can be used on third-party platforms, Sponsored Display and DSP differ in several aspects, allowing advertisers to pick and choose the ad type features that fit their ad’s requirements the best.
To help you choose the right ad type, we’ve categorized their differences below:
- Ad Placement and Traffic Generation
Both Sponsored Display and DSP help boost brand awareness and sales, however, they differ in terms of eligibility in ad placement. Sponsored Display ads can only exist within Amazon’s eCommerce platform, apps (in select marketplaces), and third-party websites. While this ad type can reach specific audiences on the platforms mentioned, it doesn’t allow traffic to be sent to external websites.
In contrast, Amazon DSP ads can exist both on Amazon as well as on and off Amazon’s Owned and Operated (O&O) websites (Amazon devices, IMDb, Woot, Shopbop, Digital Photography Review, Zappos, Goodreads, Twitch). Another feature of Amazon DSP is that it allows advertisers to send traffic to the brand’s Amazon
- Brand Eligibility
To get started with Sponsored Display and Amazon DSP ads, your brand needs to be registered on Amazon. Through Amazon’s Brand Registry Program, not only will you be able to launch your own storefront, but it can also protect your brand from malicious actions.
Once your brand registration is complete, you’ll enjoy several privileges such as having complete ownership of your products, trademarking your products (if your brand doesn’t have a registered trademark yet, Amazon’s IP Accelerator can help protect you with a pending trademark), establishing control over your product listings along with the information you provide for them, and having Amazon’s enhanced customer support.
This way, other Amazon sellers can’t claim your products, create product listings using the details from your products’ listings, and earn all the profits you should have been reaping.
- Minimum Advertising Budgets
With a minimum spend of $1 and having all traffic contained within Amazon (specifically, to your Amazon listing), Sponsored Display ads make it easy for Amazon brands to start running ads on the platform without worrying about their budget. The lower budget requirement not only attracts more brands to try out Sponsored Display ads but also gives you more time to experiment with advertising strategies before committing to a larger ad spend.
The budget requirement for Amazon DSP ads is heavier compared to Sponsored Display as it offers not only more visibility but better features as well. These features include access to more detailed reports and insights into your audience. DSP’s self-service solution requires a minimum monthly spend of $10,000 while the other option, Amazon Managed Services for DSP, requires $35,000. The Amazon Managed Services DSP option brings in Amazon’s programmatic advertising buying experts.
Is the Amazon DSP minimum spend currently out of your budget? Our experts at AMZ Pathfinder can help you get started on a budget of less than $10,000. Get in touch with us today!
- Cost Structure
The difference between Sponsored Display and Amazon DSP’s cost structure is quite simple. Sponsored Display uses a Pay Per Click (PPC) structure which is based off the average cost you’ll pay every time your ad is clicked on. On the other hand, Amazon DSP uses a Cost Per Mille (CPM) structure which is the average cost you pay for every 1,000 impressions of your ads.
