Transcript
Speaker: Welcome back to the Amazon Blueprint Podcast.
Speaker: Hello again, I'm Sam Lee, Vice President of Trivium Group. At Trivium, we help brands and in this case agencies to scale profitably using advanced advertising strategies such as Amazon DSP. Getting access to Amazon DSP isn't very simple, so today we're going to dive right into it. So first off, what is an Amazon DSP seat? Amazon DSP or Amazon's demand side platforms, a programmatic marketing tool, and the seat is simply what agencies and brands use to access that tool. While PPC can be accessed directly through Seller Central, Amazon DSP requires a separate entity or seat in order to access it.
Speaker: Amazon DSP lives completely outside of Seller Central and has to be linked using something called a merchant token, which we talk about in another video. But in order to gain access to this seed, it's not as simple as just logging in. So why would you want a DSP seed in the first place? We talk about all the benefits to Amazon DSP in another video, but simply put, to gain access to Amazon's premium inventory.
Speaker: and static display ads you need to access Amazon DSP and in order to access DSP it's more difficult than just signing up. For brands plain and simple you want to run your own ads and own your own data. For agencies you're probably already running PPC ads and you want to be able to run DSP ads for your clients as well. So how do you get an Amazon DSP seat? There are three options. Option Amazon's minimum spend requirements for either managed or self -service. Honestly, the minimum ad spend requirements for both of these things are kind of a moving target, but from what I've seen, it's somewhere from $35 ,000 to $50 ,000 a month to qualify. Amazon will often have you sign a contract that says something along the lines of, I agree to pay $150 ,000 over the course of the first three months, which is understandably difficult to commit to, especially if it's not a platform that you've experimented with in the past.
Speaker: So that leads me to my two main problems with running managed service through Amazon. Problem number one, that's a large commitment to make if you've never tested out Amazon DSP. I don't know about you, but I've never committed $35 ,000 to $50 ,000 to something that I haven't at least tested in the past.
Speaker: Back into number one, and that if you're spending $35 ,000 to $50 ,000 a month launching Amazon DSP, odds are you're going to have to run a pretty upper funnel campaign and you might not like the results. Option two, work with an agency. Agencies can either access same as Amazon DSP because they hit the minimum ad spend requirements and they have their own seat, or they'll partner with a tech partner which will talk I'd say that this is probably the most common way that brands utilize DSP simply because the ad spend requirements are lower than working with the Amazon directly and they don't need to have somebody in -house that knows how to use it. Another way that agencies can utilize Amazon DSP is simply by using other agencies. so Amazon DSP agencies and DSP seats are more difficult to come but
Speaker: um Amazon agencies will find another agency to partner with and they can outsource that work to them. Option three, find a tech partner. This is how the majority of both brands and agencies access Amazon DSP. Some examples include Exmar's, Perpetua, Packview, Intentwise, Cortile, if I missed you, I'm sorry, but essentially these are created DSP instance for you and they charge somewhere from 2 to 5 % of ad spend on an ongoing basis as well as a minimum fee. Typically these companies will create an instance for you. You'll access the DSP either through your own seat or through their platform and they'll have some tech that they layer on top for things like bid adjustments, AMC instance creation, all sorts
Speaker: managing amazon dsp a little bit easier for both agencies and brands the upside to this is that it makes managing it easier sometimes more effective and you don't have to hit the minimum spend requirements than amazon has in order to gain a seat the downside is that even though these percentages are small as you scale that cost scales and if you have several brands that are running on dollars a month in ad spend, that number gets pretty substantial pretty quick. That being said, if one of these tech companies can improve performance by 3%, then a 3 % cost increase is just a wash. So it's worth looking into. Another option is what we call a seat rental. This is essentially where somebody who has their own seat can offer limited access to others. So for example,
Speaker: Ugg at Trivium we can create a singular advertiser for a brand or an agency and give them access to that advertiser if they want to run the ads themselves. So in this sort of arrangement we charge a flat monthly fee and then you have access to people such as myself probably in this case literally myself if you need any guidance in figuring out how to do particular things within the platform but still want For experts, the flat fee is great because you don't have to worry about scaling costs when spending more. For beginners, it's great because it's essentially a set of optional training wheels. So in summer, getting access to Amazon DSP isn't easy yet, but you do have options. Reach out at the link below to get into contact with me if you have any DSP -related questions. If you're looking to get a DSP seat yourself or a DSP seat for your brand, click the link below and we'll be happy to help.
