What is the Amazon DSP: A Beginners Guide to Understand Amazon Demand Side Platform

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What is the Amazon DSP

• Amazon DSP is Amazons display advertising
  platform that lets sellers reach their target and
  relevant audience on Amazon sites, apps, and
  other publishing partners (read other websites).
  In short, Amazon DSP is to Amazon, what display
  advertising is to Google.
• Amazon DSP is in a programmatic ad platform built
  by the Amazon to bring-in more sales for the
  sellers and hence more revenue and growth for
  themselves. We know it is a bit difficult to
  understand this amidst the Amazon PPC so we have
  made it easy for you in this piece here.
• To understand the DSP thoroughly, let us help let
  us all dig back to the growth strategy employed
  by Amazon from in its budding days.

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Amazons flywheel of growth

• With customer obsession as its leading principle,
  Amazons operations were built around the
  Customer Experience by making this happen
  Offer the largest possible collection of goods at
  lower prices than the competition.
• 1. More products meant more customers and higher
  traffic which further propelled more sellers to
  who bring along their products to the platform.
• 2. More sellers and a large collection of
  products meant competitive prices, better price
  points, and hence better value for the customers
  which translates to improved customer experience.
• 3. Better value and improved customer experience
  meant more customers and hence more sellers.
• This is a constant feedback loop, a self-serving
  flywheel. By enhancing the customer experience,
  Amazon succeeded in continuing this feedback loop
  growing like a mountain over the years. With the
  onset of Amazon advertising on the platform the
  competition became intensive so were the
  revenues. All the revenue and thus profits were
  further invested in improving the infrastructure
  to enhance the customer experience and hence the
  growth. There is no stopping the Amazon
  Juggernaut.

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Birth of Amazon DSP Demand Side Platform

• Amazon became a profit haven for the sellers all
  around. All a seller has to do enlist the
  product, build the brand, gather reviews, sponsor
  their products and they got their sales and
  revenues. As an Online Marketing Company in
  Hyderabad, Samskriti Business Solutions has
  helped many brands leverage Amazon advertising in
  Hyderabad. But more on that in the next part.
• So moving on Sellers and their products grew and
  still continue to grow like wildfire, but the
  customer numbers remained the same. The total
  sales with Amazon advertising using console is
  limited since the customer numbers do not
  increase with search advertising creating a
  bottle-neck scenario. And Amazon needs the
  customers for the sale to happen, right?
• And thus born Amazon DSP Demand Side Platform.

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How does Amazon Demand Side Platform work?

• Amazon Demand Side Platform(DSP) is all about
  sellers bringing shoppers to their product on
  Amazon from the off-Amazon platform. Unlike,
  Amazon Ad Console where only users with purchase
  intent are driven to make the purchase, Amazon
  Demand Side Platform captures relevant users
  outside the Amazon platform by itself It creates
  awareness among users, retargets users with
  purchase interest and drives them to the
  purchase.  
• While Amazon Ad Consoles sales volume is
  limited, Amazon Demand Side Platform with its
  Display, Banner, Image, and Text Video Ads
  brings-in new customers which is essential for
  the growth of the seller year-on-year. And how
  does Amazon accomplish this? Let us discuss that
  in detail in our part-2 of this series.Got more
  queries or need more info on Amazon DSP?  Or
  looking for a digital marketing company in
  India to jump-start Amazon advertising in
  Hyderabad? You can contact Samskriti Business
  Solutions.

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