Amazon DSP

Amazon DSP Ad Types: When to Use Them (With Examples)

Archit Arora

15 Sep 2023

With more and more shoppers turning to Amazon for online shopping, it is obvious why brands don’t want to limit themselves to Sponsored Ads and are eager to leverage Amazon DSP advertising in 2024.

Amazon DSP (Demand-Side Platform) is a digital advertising platform that enables advertisers to programmatically purchase and optimize their digital advertising inventory, allowing precise targeting and strategic ad placements across Amazon’s ecosystem and third-party websites.

If you’re new to DSP and find it difficult to understand the different Amazon DSP ad types, you have come to the right place.

This article aims to help you understand the four main types of Amazon DSP advertising. We’ll share insights on the optimal situations and strategies for using each type to create successful Amazon DSP campaigns.

Video Ads

The term “Video Ads” might naturally bring Sponsored Brands Video Ads or Sponsored Display Ads to your mind. However, Amazon DSP offers advertisers the flexibility to showcase their video ads both on and off Amazon, with much more control over the type of audience they wish to target. These ads are best for acquiring new audiences and creating brand awareness through interactive video content on various Streaming TV content and third-party websites and mobile apps.

There are two types of Video Ads:

OTT or Streaming TV Ads
OLS or Video Ads

OTT Ads:

Ads that appear within video content are known as OTT (over-the-top) video ads. These full-screen videos can be shown alongside high-quality streaming content, including the latest movies, TV shows, curated news, or live sports. These ads are not clickable and primarily focus on driving awareness for the brand.

OLV Ads:

These are the online video ads that are served on third-party sites. Users can be redirected to the Amazon product detail page or the brand’s website after clicking on the ad. These ads are super helpful in driving brand awareness for either an overall brand or a specific product from the brand.

Dynamic Responsive eCommerce Creatives (RECs)Ads

REC ads are a robust alternative to traditional dynamic e-commerce display ads. Previously, you had to manually create multiple ads of various sizes. However, responsive eCommerce ads streamline this process through automation. These ads can automatically generate creative displays for up to 20 products, utilizing machine learning. Notably, they also intelligently pause the ads for out-of-stock ASINs and promptly update the ads to showcase available alternatives. This ad format is great for reaching out to new customers as well as existing customers.

Benefits of REC Ads

RECs are auto-generated, saving you time and resources, hence no more manually creating multiple ads for different sizes and products.
With the help of machine learning, it chooses the best-performing products and keeps ads up-to-date with in-stock availability. This ensures viewers see relevant, impactful ads, boosting click-through and conversion rates.

Audio

Audio Ads:

These ads are crafted to engage audiences on both Amazon Music and third-party Amazon publisher services such as Echo, third-party Alexa-enabled devices, and Fire TV. They consist of concise audio snippets lasting between 10 to 30 seconds, effectively conveying and enhancing your brand’s message. The pricing model is based on a cost-per-thousand-impression (CPM) basis, making them a favorable choice for sellers.

According to Amazon, audio ad campaigns deliver:

1.1x higher ad awareness compared to third-party benchmarks for audio in the industry.
2x higher favorability compared to third-party standards for audio in the industry.
1.9x higher purchase intent than third-party audio benchmarks in the industry.

Podcast Ads:

Currently available in the UK only, these Podcast programmatic ads provide advertisers with an exclusive inventory with a diverse mix of podcasts from Amazon’s owned and operated podcasts.

As podcasts have become so popular these days, DSP podcast ads are one of the best ways to reach a vast audience base who regularly listen to their favorite podcast host. With the right messaging, these ads can work great in building trust.

Benefits of Audio Ads

Audio ads have a proven track record of influencing consumer decisions and motivating them to take the next step.
See a compelling return on your investment by reaching engaged listeners who are receptive to your brand.
Create positive brand associations and enhance how consumers perceive your brand.

Static Ads

Image Ads:

These are straightforward image ads and don’t include any dynamic elements. They are perfect for mid- and bottom-funnel advertising. You can include a call to action, such as “buy now” or “shop now,” in the image to induce people to click on the ad. Users can be redirected to product detail pages, brand store pages, or custom landing pages after clicking on the ad.

Image Source – Amazon

Mobile Banner Ads:

These rectangular banners appear at the tops and bottoms of mobile screens while users browse websites and third-party mobile apps. They are less intrusive and more user-friendly, aligning with the preferences of mobile users.

Image Source – Amazon

Benefits of Static Ads

With the ability to include direct calls to action such as “buy now” or “shop now,” static image ads prompt user interaction and engagement, guiding potential customers towards specific actions and conversions.
It provides a straightforward visual message without dynamic elements, allowing businesses to convey brand identity and capture audience attention effectively.

Ready to get started with Adbrew?

Adbrew provides cutting-edge automation, expertly curated strategies, and data-driven insights for brands to thrive on Amazon.

Final Thought

Whether you’re looking to drive awareness at scale by displaying your brand during streaming content, reaching people listening to podcasts, or focusing on driving conversions with responsive e-commerce ads, Amazon DSP has something to offer for all your use cases.

Frequently Asked Questions

What are the various Amazon DSP Creative Ad Specifications?

Each DSP ad type comes with its own set of specifications. You can refer to Amazon’s resources on DSP Ads Spec for detailed information.

What is the initial investment required for Amazon DSP Advertising?

There are two choices available. The first option is a managed service, where Amazon oversees your DSP account. This is ideal for advertisers with limited programmatic advertising experience, and it necessitates a minimum spend of $50,000. Alternatively, there is a self-service option, where you can collaborate with an Amazon Ad Agency Partner, such as Adbrew, to set up your DSP account. This option does not have any minimum ad spend limit.

What are the benefits of using Amazon DSP for my advertising campaign?

Precise targeting, programmatic ad buying, wider reach beyond Amazon, enhanced analytics, and control over ad placements are just some of the benefit

How can I track the performance of my Amazon DSP Ad Types?

Amazon DSP provides comprehensive reporting dashboards that track key metrics like impressions, clicks, conversions, and return on investment (ROI). You can analyze these metrics to optimize your ads for better results.