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Amazon DSP Ads: The Hidden Truth Behind Your Sales
11 Plays25 minutes ago
Are your Amazon DSP ads actually driving growth, or just inflating your metrics?
Many sellers face inflated ROAS and cannibalized sales because they don’t fully understand DSP attribution. In this episode, I explain how to see if your Amazon DSP sales are real and break down:
✅ Attribution vs. Incrementality: What’s the difference, and how does it impact your strategy?
✅ View-Through Attribution vs. PPC: How Amazon DSP ads claim credit for sales and what it means for your campaigns.
✅ Maximizing Real Sales Growth: Actionable strategies to avoid overlap and drive results.
Amazon DSP advertising can be a game-changer—but only when used strategically. 🚀 Ready to start Amazon DSP? Book a FREE strategy call here: https://hubs.la/Q037x_qL0
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Transcript
Legitimacy of Amazon DSP Sales
00:00:00
Speaker
Welcome back to the Amazon Blueprint Podcast.
00:00:06
Speaker
Are Amazon DSP sales real or is it a big fucking scam? The answer is...
00:00:13
Speaker
It depends. People ask me all the time, my DSP sales look great, my ROAS is high, but my overall revenue is... What's going on? Good thing DSP daddy's here to explain this to you.
00:00:24
Speaker
So if you've run DSP at some point and you saw good results, you're probably wondering, are these results inflated? Well, you're not alone. Here's the breakdown. First of all, if you're unfamiliar with Amazon DSP, you have come too far.
00:00:36
Speaker
This video is not for you. Go back to this link.
Understanding Attribution vs. Incrementality
00:00:39
Speaker
It's going right Amazon DSP is learn a little bit about it this is for people that are actively running Amazon DSP and want to learn a little bit more about the numbers behind it so generally speaking there are a lot of questions being asked around Amazon DSP attribution incrementality first of all I want to explain that incrementality and attribution are two different things attribution simply means who's getting Is it a PPC ad, sponsored product, sponsored brand? Is it a DSP ad or was it an organic sale? Incrementality is a little bit more tricky to understand because it means how many of these sales would have come through had this person not been served an ad.
00:01:14
Speaker
Neither one is going to be perfect, but attribution is a little bit easier than incrementality, relatively speaking. So essentially... and I drove $10,000 in sales and I spent $2,000 on Amazon DSP.
00:01:25
Speaker
How many sales would I have driven had I not run DSP at all? It's an imperfect practice, but there are ways that you can figure it out. So the main reasons that people don't trust Amazon DSP attribution or incrementality comes down to two things. One, it's a view through attribution model. As opposed to PPC, we're And to get attribution for the sale, as long as you view a DSP ad, that ad will be credited for the sale. The other part is cannibalization of PPC and organic sales.
00:01:50
Speaker
Essentially that DSP is credited for a sale, but would somebody have already come to that page via PPC organic and bought it anyways, and did the DSP ad actually in?
Maximizing Incrementality with Tips
00:02:01
Speaker
So honestly, we can never say with 100% certainty which sales are incremental and which ones aren't.
00:02:06
Speaker
In the same way that you run an Instagram or Facebook ad, how are you going to say that because somebody saw your ad went to your website, and bought your product, that they wouldn't have Googled it and bought it anyways? You can't know for sure.
00:02:17
Speaker
But you can look at the data and set up your campaigns. relative certainty. So when it comes to DSP attribution, here are four tips to help to make sure that your sales are as incremental as possible. Number one, merchant token. Merchant token is simply an identifying code that comes with every Seller Central account. Because Amazon DSP lives outside of Seller Central, the worry is always that a PPC ad and a DSP ad might be attributed to the same overestimating your total sales.
00:02:42
Speaker
This is very possible. The way to mitigate this is you input the merchant token at the advertiser setting level within the DSP. That ties it to the Seller Central account and then it deduplicates your sales to make sure that only one ad or the other is getting credit for a given sale. The next one is percent of purchases coming new to brand. This is especially important for CPG supplements generally speaking one important thing to look at is if your return ad spend is really high and your percent of purchases coming new to brand is really low it often means that your dsp ads are cannibalizing attribution and you're serving ads to people that probably would have bought your products anyways you want to make sure that your percent of purchases coming new to brand is as high as possible if it's sub
00:03:20
Speaker
And for any category, that's a problem in the supplement space, 20 to 30% healthy and the non supplement space or anything that's not repurchaseable, you want to make sure it's above 50%. One way that you can make sure that your percent of purchases coming new to brand is high is where you allocate your dollars between funnel stages. If you're spending too much money on the bottom funnel, meaning re getting cross-selling, often you're going to be cannibalizing a lot of the traffic and a lot of your repeat customers that probably would have come back
Viewing Sales Performance Holistically
00:03:47
Speaker
anyways. You want to make sure that you're spending as much as possible in the mid to upper funnel while keeping your return on ad spend at a relatively steady place. The last one is the simplest, yet it's also potentially the most complicated, and that's to zoom out.
00:03:59
Speaker
How are your sales and DSP versus when you don't. I have a caveat with this just due to the fact that Amazon does not operate in a vacuum. So depending on your PPC budget, seasonality, going in and out of stock, pricing, there are a lot of things that that can impact your overall revenue.
00:04:14
Speaker
So DSP spend is not necessarily going to be the only thing. That being said, if you run Amazon DSP for Everything else is the same and your sales don't improve. It's probably not working. Even if your return on ad spend is high.
Effectiveness of DSP and Engagement Invitation
00:04:26
Speaker
Despite everything that I've probably just said to scare you away from Amazon DSP, it's an incredibly impactful platform when it's in the right hands. If you're interested in testing it out or just learning more or looking for an audit or you just want to talk to me for whatever reason, then reach out to my channel or go TriviumCo.com. I think that's it. It'll be in the link. You're good.