SD vs DSP. Advantages and Disadvantages
Advantages of SD and DSP
Amazon Advertising Services offers competitive campaign management advantages, no matter the scope of your brand, company, or budget. While Sponsored Display (SD) and Demand Side Platform (DSP) are both great formats, a case can be made to test and optimize each format for your brand and products.
SD has no monthly minimum requirement and is pay-as-you-go depending on cost-per-clicks (CPC) and/or cost-per-thousand-impressions (CPM). With a low barrier to entry and a limited learning curve, it is a quick way to boost awareness and drive sales for smaller brands wanting to reach broader audiences on and off Amazon. Although SD currently allows limited control over targeting capabilities, Amazon adds new functionality on a consistent basis which makes this platform exciting.
SD works great if you want to showcase a coupon or a deal. SD can also auto-generate an ad creative using product imagery already used in your detail pages. There is no need to spend hours and money on graphic designer's time creating ads. That being said, there is an option to customize the ad by adding your brand's logo and custom headline text.
While the SD format is very easy to get started with, because it is constantly evolving, it is becoming an effective and important tool in our arsenal.
Amazon DSP is a multifaceted behemoth of an advertising platform that programmatically serves your display and video ads on Amazon and across the web. You can drive DSP traffic to your own .com or to your Amazon product pages.
The wide range of creative content that is allowed from this dwarves that of SD which only generates simple display images. The complexity of DSP allows for ad creative placement in finely tailored look-back windows and leverages a large combination of custom targeting tactics. Creating multi-layer audience campaigns for multiple ASINs takes time and expertise. It also currently requires a minimum monthly premium. Currently, Amazon requires an ad spend commitment of $35,000 per month. Partner with PointStory to create a strategy that will work with your goal and budget.
DSP will be especially effective as you scale your brand. The performance reporting helps learn which items in your portfolio are driving sales providing insights to understand which products are driving sales. Audience insight reports help understand how shoppers engage with your brand. Extensive metrics of specific actions track across the purchase funnel using branded searches, offsite conversion, third-party reporting for third-party tags, and SNSs.
Both of these formats can be very effective as part of your advertising strategy. Contact us to discuss your objectives and how we can help.