Amazon DSP 101: Elevate Your Brand with Precision Advertising

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In today’s competitive and ever-evolving world of digital advertising, reaching the right audience at the right time is more crucial than ever. Amazon DSP offers a game-changing solution, combining the precision of programmatic advertising with the unparalleled reach of Amazon’s vast ecosystem. Whether you’re aiming to enhance brand awareness, drive sales, or re-engage potential customers, Amazon DSP equips you with the tools to craft powerful, data-driven campaigns that connect with your ideal customers. In this blog, we’ll dive into what Amazon DSP is, how it works, and how you can harness its full potential to elevate your advertising strategy.


What is Amazon DSP?


Amazon DSP or Demand-Side Platform, is a programmatic advertising platform that allows advertisers to buy video, display, and audio ads both on Amazon and across the web. It enables brands to reach Amazon shoppers and other audiences through targeted ads, leveraging Amazon’s vast amount of first-party data.


Key Components of Amazon DSP


1. Audience Targeting - Amazon DSP offers advanced targeting options, including demographic, lifestyle, and in-market segments, as well as retargeting capabilities to reach users who have interacted with your brand.


2. Creative Options - Advertisers can choose from various ad formats, including display banners, video ads, and audio ads, making it versatile for different campaign goals.


3. Reporting and Analytics - The platform provides comprehensive reports that offer insights into campaign performance, audience behavior, and more, allowing for data-driven decision making.


4. Programmatic Buying - Amazon DSP uses automated, real-time bidding to place ads, ensuring that ads reach the right audience at the optimal time.


Types of Managing Amazon DSP


When managing Amazon DSP campaigns, advertisers have two primary options: Self-Service and Managed Service. Each option offers different levels of control, support, and cost, depending on your needs and experience with programmatic advertising.


1. Self-Service


With the self-service option, you have complete control over all aspects of the campaign, including targeting, budgeting, and creative strategies. You can make real-time adjustments and optimizations as needed. Typically, there’s no minimum spend requirement, making it a more flexible option for advertisers with varying budgets.


2. Managed Service


The managed service option involves working directly with Amazon’s team, who handle all aspects of the campaign on your behalf, from setup to optimization. This means that you get access to Amazon’s team of experts who will manage and optimize your campaigns, leveraging their experience and insights.The managed service often includes advanced optimization techniques and strategic guidance to help maximize your campaign’s performance.


How Much Does Amazon DSP Cost?


The cost of using Amazon DSP varies depending on several factors, including the scope of your campaign, targeting options, ad formats, and overall budget. Here are some key points to consider:


1. For managed service through Amazon DSP, there is typically a minimum spend requirement, which can range from $35,000 to $50,000, depending on the region and the campaign goals.


2. If you choose the self-service option, you have more flexibility with your budget, and there’s generally no strict minimum spend requirement. However, you will need to manage the campaigns on your own or through an agency, which can affect overall costs.


3. Ad Format Costs: The cost can vary based on the type of ad formats you choose. For example, video ads typically cost more than display ads due to higher production and engagement levels.


4. Bidding Model: Amazon DSP uses a real-time bidding (RTB) model, where the cost is determined by the competition for the target audience. The more competitive the audience segment, the higher the cost per impression (CPM).


Where are Amazon DSP Ads Shown?


Amazon DSP ads are shown across a wide range of platforms, both within the Amazon ecosystem and on third-party websites and apps. Here’s where you can expect your Amazon DSP ads to appear:


1. Amazon-Owned Properties


Amazon.com: Ads can appear on Amazon’s main site, including product detail pages, search results pages, and the homepage.


IMDb: Display and video ads can be shown on IMDb, which is owned by Amazon, reaching an audience interested in movies, TV shows, and entertainment.


Fire TV: Ads can be displayed on Amazon’s streaming platform, Fire TV, reaching users while they browse or watch content.


Amazon Devices: Ads may also appear on Amazon devices like Kindle and Echo, offering unique placements to reach users directly through these devices.


Amazon Music: Audio ads can be placed on Amazon’s music streaming service, reaching listeners as they enjoy their favorite songs and podcasts.


Twitch: Ads on Twitch, the popular streaming platform owned by Amazon, are available, targeting a highly engaged audience, particularly in the gaming community.


2. Third-Party Websites and Apps


Amazon Publisher Services - Amazon DSP provides access to a network of third-party publishers, allowing ads to appear on high-quality websites and apps outside of Amazon’s own properties.


Ad Exchanges - Through real-time bidding, Amazon DSP places ads on various ad exchanges, extending reach across the broader internet.


Mobile and Desktop Platforms - Ads can be shown on mobile apps, mobile web, and desktop sites, ensuring that your campaign reaches users across all devices.


3. Video and Audio Platforms


Video Platforms - Amazon DSP supports video ad placements, allowing your ads to be shown on popular video platforms, including Amazon’s own IMDb TV and other partner networks.


Audio Streaming Services - Audio ads can be played on Amazon Music and other partnered audio streaming services, engaging users while they listen to music or podcasts.


Creative Types in Amazon DSP


Amazon DSP offers a range of creative ad types to help advertisers reach their target audiences effectively across different platforms. These include:


Display Ads - Static banners, dynamic ads personalized based on user behavior, responsive eCommerce ads, and custom image ads that provide creative freedom.


Video Ads - In-stream video ads that play before, during, or after video content, out-stream ads that appear in articles or social feeds, and OTT ads shown on connected TV devices.


Audio Ads - Streaming audio ads and companion banners that reinforce the audio message visually.


Rich Media Ads - Interactive ads like expandable, shoppable, and other rich media formats that enhance user engagement.


Native Ads - Ads that blend seamlessly with the content on the page for a less intrusive experience.


Custom Ads - Tailored experiences such as microsites and interactive storytelling to create a memorable brand presence.


These options allow advertisers to select the most suitable formats for their campaign goals, enhancing brand awareness, engagement, and conversions.


Types of Targeting in Amazon DSP


Amazon DSP offers a range of precise targeting options, leveraging Amazon's first-party and third-party data to ensure ads reach the right audiences. The main targeting types include:


Audience Targeting - Reaches users based on their in-market behavior, lifestyle, demographics, and interests.


Behavioral Targeting - Focuses on retargeting and remarketing users who have interacted with your brand or made past purchases.


Contextual Targeting - Delivers ads relevant to the content users are viewing, including keyword-based and content-based targeting.


Device Targeting - Ensures consistent messaging across multiple devices, including connected TV.


Geographic Targeting - Targets users based on their location, down to specific regions or areas.


Lookalike Targeting - Expands reach by targeting new users similar to existing customers.


Dayparting and Frequency Capping - Controls when and how often ads are shown to avoid overexposure.


Custom Segments - Allows highly specific audience creation using your own data or Amazon interactions.


These targeting options enable advertisers to deliver personalized and relevant ads, boosting engagement and conversion rates.


Ready to Elevate your Digital Marketing Strategy?


As the digital advertising landscape continues to evolve, Amazon DSP offers a powerful platform to connect with your target audience in meaningful and impactful ways. With its sophisticated targeting options, diverse ad formats, and access to vast first-party data, Amazon DSP allows you to craft campaigns that resonate deeply with consumers and drive tangible results.


Don’t let your brand miss out on the opportunity to reach the right customers at the right time. Start leveraging the power of Amazon DSP today and watch your marketing efforts reach new heights. Whether you’re looking to boost brand awareness, re-engage past customers, or drive conversions, Amazon DSP has the tools you need to achieve your goals. Ready to take the next step?  Contact us here or book a zoom call to explore how Amazon DSP can be the catalyst for your brand’s success.

A man and a woman are sitting next to a cell phone with a shield on it.
By William Fikhman February 20, 2025
Picture this: You’ve built up your Amazon business, created stellar listings, and have a steady stream of sales. Everything seems to be going perfectly until— boom —you’re hit with a suspension. Your product is suddenly hidden from search results, and your hard-earned sales come to a screeching halt. It’s a nightmare every seller fears: being sent to Amazon’s “black box.” But here’s the thing—this doesn’t have to be your reality. Navigating Amazon’s complex policies can feel like walking a tightrope, where one misstep could trigger a suspension or ban. The good news? With the right strategies and a solid understanding of what Amazon expects from sellers, you can avoid this fate and keep your listings visible, your account healthy, and your business thriving. In this post, we’ll break down the common reasons Amazon listings and accounts get suspended, and share actionable strategies to help you stay in the clear and avoid the dreaded black box. Common Reasons Your Listing Could Be Suspended Getting suspended on Amazon can happen for a variety of reasons, but understanding these pitfalls can help you avoid them. Here are the most common causes of listing suspensions: Product Quality Complaints: It only takes a few negative reviews or customer returns due to defects to trigger Amazon’s attention. If your products aren’t living up to customer expectations, Amazon will investigate. And trust us—dealing with returns is one thing, but dealing with Amazon’s investigation is another. Policy Violations: Think you can slip by with a sneaky pricing strategy or a less-than-accurate product description? Think again. Selling restricted or counterfeit products, manipulating prices, or misleading customers with false claims can get your listing suspended faster than you can say “violations.” Amazon’s rules are strict, and they don’t take violations lightly. Poor Performance Metrics: Amazon is all about the customer experience, and if your metrics aren’t up to par, it can spell trouble. A high order defect rate, late shipments, or even too many cancellations can raise red flags and lead to penalties. Essentially, if you’re not delivering on your promises, Amazon will take action. Intellectual Property Infringements: Think you can get away with listing products that violate trademarks, patents, or copyrights? Not likely. Amazon is vigilant when it comes to intellectual property, and if you’re infringing on someone else’s rights, your listing will be removed faster than you can blink. It’s better to play it safe than risk being flagged for infringement. Failure to Provide Accurate Information: A product listing that’s incomplete or misleading is a major red flag for Amazon. Missing images, inaccurate shipping times, or incomplete descriptions can all lead to penalties. Always double-check your listings to ensure everything is crystal clear and 100% accurate. Strategies for Preventing Listing Suspensions & Bans Now that we know the primary causes of Amazon’s black box, let’s go over the essential steps you can take to avoid listing suspensions and bans. 1. Stay Compliant with Amazon’s Policies Amazon is very strict when it comes to policy violations. Sellers are responsible for familiarizing themselves with and following Amazon’s guidelines. Some key policies to pay attention to include: Product Authenticity: Always sell genuine, authentic products. Selling counterfeit or unauthorized goods is a major violation that can result in an immediate suspension. Product Listings: Ensure your listings are accurate, clear, and fully compliant with Amazon's product listing rules. This includes using appropriate keywords, clear product descriptions, and accurate images. Restricted Products: Amazon has a list of restricted products, such as alcohol, tobacco, and pharmaceuticals, that cannot be sold on the platform. Familiarize yourself with these restrictions to avoid accidental violations. Pricing Policies: Amazon enforces its Minimum Advertised Price (MAP) and price parity policies, which restrict price gouging or selling at prices that are out of line with the market. Tip: Set up regular checks to ensure you’re following Amazon’s policies. Any changes to Amazon’s rules should prompt a review of your listings and business practices. 2. Maintain Excellent Product Quality Customer satisfaction is at the core of Amazon’s business model, so maintaining a high level of product quality is key to avoiding suspensions. A few ways to maintain product quality include: Consistent product sourcing: Work with reputable suppliers and manufacturers to ensure your products are free from defects. Quality control checks: Perform regular inspections and quality checks on products before shipping them to Amazon’s warehouse. Accurate descriptions: Be transparent in your product descriptions. Avoid exaggerating features or benefits, as this can lead to negative customer reviews or returns. Tip: Regularly monitor customer feedback. Responding to complaints and addressing issues quickly can prevent a negative review from escalating into a suspension. 3. Provide Outstanding Customer Service Amazon places significant emphasis on customer satisfaction, and poor customer service can quickly lead to a suspension. Negative feedback, unaddressed complaints, and late shipments can hurt your seller metrics and prompt Amazon to suspend your account. To ensure a positive customer experience: Ship promptly and reliably: Always meet the expected shipping times. Consider using Amazon’s Fulfillment by Amazon (FBA) service to handle inventory and shipping. Respond quickly to customer inquiries: Make sure you’re replying to messages within 24 hours. Prompt, professional communication can prevent customer frustration and negative feedback. Monitor your metrics: Keep an eye on Amazon’s performance metrics (such as Order Defect Rate, Late Shipment Rate, and Pre-Fulfillment Cancellation Rate). If these metrics fall below Amazon’s acceptable thresholds, you risk suspension. Tip: Sign up for email alerts for any issues with your seller account to catch potential problems early. 4. Be Careful with Intellectual Property Intellectual property (IP) violations are one of the most common reasons for Amazon account suspensions. Sellers can inadvertently violate a brand’s trademark or patent by listing products that don’t comply with IP laws. These violations can lead to takedowns of individual listings or even entire accounts. To avoid IP issues: Ensure product authenticity: Only sell products that are legitimate and authorized by the brand owner. Avoid trademark violations: Research brand names, logos, and product names before listing items. Do not use trademarks without permission. Respond to claims: If a brand files an infringement notice against your listing, respond quickly and professionally. You may need to provide proof of authenticity or remove the listing. Tip: When in doubt, consult with an IP attorney to ensure you’re not infringing on anyone’s intellectual property. 5. Keep Your Inventory in Stock and Ship on Time One of the fastest ways to get flagged by Amazon is by consistently running out of stock or missing shipments. Inventory issues are taken seriously by Amazon, and failure to maintain proper stock levels can lead to listing suspensions or account bans. To keep your inventory in check: Forecast demand: Use Amazon’s tools like the Inventory Performance Index (IPI) to predict demand and avoid running out of stock. Use FBA: If you’re fulfilling orders yourself (FBM), consider switching to Amazon’s FBA program, which can help you meet fulfillment expectations and reduce the chances of late shipments. Monitor inventory health: Regularly review your inventory levels to avoid stockouts and long delivery times. Tip: When you run low on inventory, consider informing your customers of delays ahead of time. 6. Appeal Suspended Listings Effectively Even if you follow all the rules, there’s always a chance that Amazon might suspend your listing due to a mistake or misunderstanding. In such cases, you can file an appeal to reinstate your listing. To increase your chances of success: Understand the reason for the suspension: Amazon usually sends a notification explaining why the listing was suspended. Read this carefully and ensure you understand the issue. Develop a plan of action: When filing your appeal, provide a clear and concise explanation of how you intend to address the problem. This should include specific steps you're taking to prevent the issue from happening again. Provide supporting documents: If necessary, provide evidence, such as invoices or supplier agreements, to show that your products are authentic and that you’re in compliance with Amazon’s policies. Tip: Always remain professional and cooperative in your appeal. Aggressive or confrontational language can hurt your chances of reinstatement. 7. Monitor Your Account Health Regularly Amazon gives you access to a number of reports and dashboards to track the health of your account. Regularly reviewing these metrics can help you spot problems early and prevent suspensions. Key reports to review include: Performance Notifications: Monitor these for any alerts or warnings that could indicate a problem with your account. Account Health Dashboard: This dashboard provides an overview of your account’s performance in terms of customer feedback, order defect rates, and other important metrics. Refund and Return Reports: Track your returns and refunds to identify trends that might suggest product quality issues. Tip: Set up notifications for changes in your account health to stay on top of any issues that could affect your listings. Final Thoughts Avoiding Amazon’s black box comes down to vigilance, compliance, and delivering top-tier customer experiences. By following the strategies in this blog—staying compliant, ensuring product quality, providing excellent service, and monitoring account health—you can minimize the risk of suspensions or bans. Remember, Amazon’s rules evolve constantly. Stay informed, adapt, and take proactive steps to protect your business. Don’t let a suspension disrupt your success. Ready to safeguard your Amazon store and keep your sales flowing? Reach out today or book a Zoom call here to discover how we can help you stay ahead of the game and thrive. Your journey to lasting success starts now with CMO !
A picture of the do 's and don 'ts for amazon sellers.
By William Fikhman February 18, 2025
Amazon Success Guide: Do’s & Don’ts for New Sellers Starting your journey as an Amazon seller can be both exciting and challenging. With millions of customers browsing the platform daily, the potential for success is enormous. Hence, navigating Amazon’s competitive marketplace requires careful strategy, attention to detail, and an understanding of best practices. Below, we highlight essential do’s and don’ts that every new seller should follow to maximize profitability and avoid common pitfalls. The Do’s of Selling on Amazon 1. Develop a Strategic Pricing Plan Pricing your products effectively is a key factor in attracting buyers and maintaining profitability. Amazon’s algorithm favors competitively priced products, but that doesn’t mean you should always aim to be the cheapest. Instead: Consider all costs, including production, shipping, Amazon fees, and marketing. Adjust pricing based on demand, seasonality, and competitor trends. Test different pricing strategies to determine what works best for your target audience. 2. Understand Amazon’s Marketing & Advertising Tools Amazon provides powerful advertising options that can significantly enhance product visibility. Utilize: Sponsored Products to promote individual listings and drive conversions. Amazon Stores to create a branded storefront and strengthen customer trust. Display & Video Ads to reach customers both on and off Amazon. Monitoring and optimizing ad campaigns regularly ensures that you maximize return on investment (ROI) and reach the right audience. 3. Manage Inventory Efficiently Running out of stock can damage your rankings and reduce customer trust, while overstocking can lead to unnecessary storage fees. To maintain balance: Use inventory management tools to track stock levels and forecast demand. Plan for seasonal fluctuations and promotional campaigns. Ensure suppliers can meet demand efficiently to prevent stockouts or delays. 4. Account for Amazon’s Fees Amazon’s fee structure includes referral fees, fulfillment fees (for FBA), storage fees, and more. These costs can quickly eat into profits if not accounted for in pricing. Research all applicable fees before setting your product prices. Consider using Amazon’s FBA Revenue Calculator to estimate costs accurately. 5. Pay Attention to Customer Feedback Customer feedback is vital for long-term success. Positive reviews improve rankings and sales, while negative feedback can deter potential buyers. Address negative reviews professionally and work on improving problem areas. Encourage satisfied customers to leave honest reviews. Monitor your feedback score to maintain a strong seller reputation. 6. Monitor Competitor Strategies Keeping an eye on competitors can provide valuable insights into pricing, product features, and marketing trends. Identify gaps in their offerings that you can capitalize on. Learn from their mistakes and successes. Adjust your strategy based on market trends to stay competitive. 7. Invest in High-Quality Product Content & Images Your product listings should be visually appealing and informative to convert browsers into buyers. Use high-resolution images that showcase product features clearly. Write compelling and keyword-rich product descriptions. Include bullet points that highlight key benefits and address common concerns. 8. Optimize for Mobile Users A large percentage of Amazon shoppers use mobile devices. Ensure your listings are optimized for mobile by: Using concise and engaging product descriptions. Testing your listings on mobile devices to check readability. Making sure images and videos display correctly. 9. Build a Brand Beyond Amazon Relying solely on Amazon can be risky. Strengthen your brand by: Creating a website and social media presence. Engaging with customers outside of Amazon through email marketing. Diversifying your sales channels to reduce dependency on one platform. The Don’ts of Selling on Amazon: 1. Don’t Rush Without Research Jumping into selling without researching the market, customer demand, and competition can lead to poor sales and wasted investment. Take time to: Analyze competitor products and pricing. Understand customer expectations and pain points. Test demand before making large inventory commitments. 2. Don’t Ignore Inventory Management Stock mismanagement can result in lost sales, penalties, and storage cost overruns. Avoid these common mistakes: Overstocking slow-moving products. Underestimating demand during peak seasons. Failing to update stock levels, leading to cancellations. 3. Don’t Underestimate Amazon’s Fees Many new sellers fail to account for all associated costs, leading to lower-than-expected profits. Avoid this by: Factoring in all Amazon fees when setting prices. Monitoring changes in Amazon’s fee structure. Using financial tracking tools to manage expenses efficiently . 4. Don’t Ignore Negative Customer Feedback Ignoring customer complaints can lead to lower ratings and even account suspension. Make sure to: Respond to complaints promptly and professionally. Improve product quality and descriptions to reduce returns. Encourage happy customers to leave reviews. 5. Don’t Focus Solely on Price Competition Competing only on price can lead to a race to the bottom and lower profit margins. Instead, focus on: Product differentiation through unique features or superior quality. Excellent customer service and fast shipping. Building brand trust and loyalty to command premium pricing. 6. Don’t Take Mobile Optimization Lightly With a significant portion of shoppers using mobile devices, failing to optimize for mobile can cost you sales. Ensure text is easy to read on small screens. Use high-quality images that load quickly. Test your listings across multiple devices. 7. Don’t Expand Too Fast Scaling too quickly without proper infrastructure can backfire. Common issues include: Poor customer service due to increased demand. Financial strain from investing too much in new products. Inefficient logistics leading to delayed deliveries. How Chief Marketplace Officer Can Help? Navigating Amazon’s complexities can be overwhelming, especially for new sellers. That’s where the expertise of a Chief Marketplace Officer (CMO) comes in. CMO provides strategic guidance to help: Optimize product listings for maximum visibility and conversions. Develop competitive pricing strategies that balance profitability and market trends. Enhance advertising efforts through targeted Amazon marketing solutions. Manage inventory efficiently to avoid stockouts or excess fees. Build a strong brand presence both on and off Amazon. With a dedicated expert handling your Amazon strategy, you can focus on growth while ensuring your business remains profitable and sustainable. Key Takeaways Success on Amazon requires more than just listing products and hoping for the best. By following these do’s and don’ts, new sellers can build a strong foundation, avoid costly mistakes, and create a thriving business. Whether it’s leveraging Amazon’s marketing tools, optimizing inventory management, or maintaining stellar customer service, strategic planning is key. For sellers who want to scale efficiently, partnering with Chief Marketplace Officer can make all the difference. Ready to elevate your Amazon business? Reach out here or book a zoom call today!
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