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Amazon DSP Advertising Explained in 7 Minutes image

Amazon DSP Advertising Explained in 7 Minutes

The Amazon Blueprint
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75 Plays15 days ago

Amazon DSP advertising is one of the most misunderstood (and underutilized) tools for scaling your brand on Amazon.  

Most people think you need a $30,000/month minimum. 

Or that it's only for massive brands. 

Or that it’s too complex to even try.  

That’s false.  

In this episode, I break down:  

👉 Why Amazon DSP is way more accessible than you think 

👉 The exact DSP funnel strategy we use at Trivium to grow 8-figure brands 

👉 How to structure your creatives (without any custom assets) 

👉 How to use Amazon’s first-party data to retarget smarter and scale faster 

👉 Why DSP works best for CPG, supplements, cosmetics, and high-repeat DTC brands  

If you're spending $$$ on Facebook ads but not retargeting on Amazon… You're leaving cash on the table.  

Learn how to set up full-funnel DSP campaigns that actually drive revenue.  

🔗 Book a FREE audit with us here: https://hubs.la/Q03kQhJB0

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Transcript

Introduction: Amazon DSP Marketing

00:00:00
Speaker
Welcome back to the Amazon Blueprint Podcast.
00:00:05
Speaker
Amazon DSP is one of the most underutilized strategies when it comes to marketing on Amazon. And I understand why. A big part of it is people don't understand how Amazon DSP works. Another part of it is people are afraid of Amazon DSP, big minimums, percentage of spend, all that kind of stuff. So i want to cover two things.
00:00:21
Speaker
Why a lot of these misconceptions are not actually true and why it's so easy to start Amazon DSP. And i want to show you exactly how we grow brands with Amazon DSP And if you're a DTC brand, especially in the CPG space, if you're a supplement, a cosmetic, something like that, Amazon DSP is super

Understanding Amazon DSP

00:00:36
Speaker
powerful. If you're already spending a ton of money on Facebook ads, I'm telling you, you're leaving so much money on the table by not using Amazon DSP. So if you don't know, Amazon DSP is Amazon's programmatic advertising. What it does is you have access to Amazon's audiences. Audiences like people who viewed a product, people who purchased the product, people who are in the market for a product, people who just got divorced, people who just got married, people who just had a baby. Amazon has a ton of data and you can leverage that data in a very smart way to drive more sales.
00:01:01
Speaker
And so essentially, Amazon released this marketing platform where it has ads inventory. It could be on Amazon's site, so Amazon's owned and operated sites, and on publisher sites. So like any third party publisher site, Men's Health Magazine, whatever, all of these big blogs, like they're selling their ad inventory to Amazon and we're able to capitalize on that. but I don't recommend it and I'm gonna explain why in a second.
00:01:20
Speaker
So when thinking about Amazon DSP, you have audiences, right? Like so people who viewed my product but didn't purchase, right? If I wanna do some retargeting. And then you have ad inventory on Amazon's desktop or mobile web or mobile app. And then you have creatives. And this is where people like to get caught up, right? In creatives, they're like, oh, don't I need all this custom creative? You don't need any of that. So let me explain to you my strategy when utilizing Amazon DSP. Number one, I stick to Amazon and Amazon only. Amazon desktop, Amazon mobile web, and Amazon mobile app.
00:01:45
Speaker
That's where I wanna show my ads. I don't wanna

Strategies for Effective DSP Use

00:01:47
Speaker
show it anywhere else. I just don't feel like I'm getting consistent results and why spend money on something that I don't feel like I'm gonna have a good return? Next, when it comes to the creatives, guys, we've tried everything.
00:01:57
Speaker
Honestly, in my opinion, what really works, with some exceptions, right? If it's like Father's Day and you want to do a Father's Day creative, cool, but with some exceptions, right? What usually works is using responsive e-commerce, which basically Amazon just takes your listing and it shapes it automatically into all these different sizes for the headline search ad, for the sidebar, all that kind of stuff. So you don't have to do any of the editing. It just does all of that automatically.
00:02:17
Speaker
And guess what? It just looks way more natural and people are more inclined to click on something that's native to Amazon versus look at this big ad that's in your face. Cool, so let's talk about the strategy. The way I structure Amazon DSP, and I do this in a very specific way, because here's the biggest thing about Amazon DSP.
00:02:32
Speaker
You're now on a separate marketing platform, and even though Amazon's campaign manager gives you results, it says, oh, you spend $1,000, you make $10,000 sales. you make ten thousand dollars in sales When I look at my total of sales, they're not $10,000 more, which tells me the attribution is off, like with anything, right? Like with Facebook, like with using billboard marketing, like there's no attribution there. So should you just not use it?
00:02:50
Speaker
There is a really good way to use it, but the way you have to think about it is with keeping everything the same, if I spend $5,000 more on DSP, how much total revenue did I increase on my brand? on my brand as a whole. Like obviously, yeah, ASIN level, great. Obviously product level, great, but like just drives traffic and you start seeing more sales

Audience Targeting and Retention

00:03:07
Speaker
across the board. Again, if it's the only thing that you changed and you increased ads spend on DSP with everything being the same and you increase your total sales, you can actually track that increase. Cool, so that being said, I build a full funnel strategy. Now, if you think about Amazon PPC, it's kind of like in the middle. People are typing in searches, they're finding you know results and they're clicking on them.
00:03:24
Speaker
Where Amazon DSP is super powerful is at the bottom, where it can retarget people that haven't purchased, and even lower, where people have purchased, you can bring them back to repurchase, or really at the top, where people haven't seen you, and maybe like, for example, Liquid IV. Liquid IV is spending millions of dollars a month driving traffic to their listing, but someone shows up to their listing, they're like I don't like that it's five grams of sugar.
00:03:42
Speaker
Well, guess what? MMA Nutrition is zero grams of sugar. And so what i could do is target people who viewed their listing but did not purchase their listing and have never viewed my listing. So they don't know me. This is fresh audience. So I'm building the top of the funnel and I'm also squeezing more at the bottom of the funnel, getting more juice out of my squeeze and also increasing lifetime value. So getting people who purchase to purchase again and again and again.
00:04:01
Speaker
All right, so what does this strategy look like? I start with retargeting. So very, very simply people who viewed our product but haven't made a purchase. I start retargeting them and I also exclude people who purchased other of my competitors products, right? Because if they bought Liquid IV, they're not going to buy mine, even though they didn't buy mine, right? So you want to make sure that you exclude anyone who's already made that purchase. If I'm a consumable product, I'm also going to add a loyalty funnel.
00:04:21
Speaker
Everyone who's purchased me in the last year but has not repurchased in the last 90 days or hasn't purchased any of my competitors in the last 90 days. Then from there, I'm going to contextual contextual is kind of like Amazon's auto campaign, like when it comes to DSP. But we've seen really good results with using contextual.
00:04:34
Speaker
Above that, I'll do competitor targeting. So people who viewed my competitors, but have not purchased from my competitors and have not purchased from me. I also like to exclude people who viewed me because if they already viewed me, they're going to be in my retargeting funnel.
00:04:45
Speaker
Then I go a little bit higher. And this is where I start really going after complimentary products and people who are in market. So maybe they're not actually looking for electrolytes right now, but they just bought a keto product. And if you're on keto, you need sugar-free electrolytes because you're gonna lose a lot of water, you're gonna lose a lot of electrolytes and you need

Optimizing DSP Campaigns and Myths

00:05:01
Speaker
to replenish.
00:05:01
Speaker
And so that's how I build that full funnel. And that's how I take what my sales are doing right now on Amazon and really enhance them by bringing more and more traffic. If you think about how to grow on Amazon, it's pretty straightforward. You get more people to see you, get more people to click on you, and get more people to convert.
00:05:15
Speaker
If you wanna know how I get more people to click and convert, I have a full listing optimization video I did here that you should definitely check out. And the reason that I mention this is because you should not run Amazon DSP before, first of all, watching this video and making sure that you have a really well-optimized listing that when people see it are actually gonna wanna click on it and actually wanna convert, right? because I can do all the magic tricks in the world with all this like PPC, DSP, all this stuff. Listen, if no one wants to buy your product, they don't want to buy your product. If you have five reviews, you have five reviews. No one's buying your product. If the average market price is 25 and you're 38, I don't know, man. If you're a consumer, you're not going to buy that product.
00:05:47
Speaker
So anyways, start with a good product, right? Good detail page. It's actually converting and then add more traffic and you can get more and more people to see you and then more people to eventually convert. all right, let's talk misconceptions. Number one, you don't need a $30,000 minimum or any of that. You don't need any minimum, right?
00:06:01
Speaker
The minimum that I ask from you is number one, it makes sense after paying me as an agency. Is it gonna make enough money for you for it to be worth it? Number two, avoiding noise. If you say, okay, let's try DSP with $500. Great, you made in sales. Amazing, how much is your total sales? 100,000 a month. So 102,000 a month? Are you gonna attribute that to DSP?
00:06:20
Speaker
Who knows, dude, you probably in 97, 98, one and two, one you know what i mean? It's too much noise. So think in like a four extra hours, right? If you spend 10K and you make forty k in sales, if you're at 100 and you go up to 140, that's significant.
00:06:31
Speaker
The second misconception is that percentage of spend. Okay, I mean, a great. I'm gonna do 10K a month initially in ad spend, and then what happens when I do 50K, 100K? Are you gonna take so much tens of thousands of dollars? no, no, no. no There is no percentage of anything. Because we own our own DSP seed, we don't have to pay anyone anything. So you can start with 5,000, and if you go up to 100,000, we're gonna charge you the same, it's the same amount of work, right We're just adding a zero to the dollars in your campaign. That's all.
00:06:55
Speaker
And finally, if you guys are spending a ton of money on Facebook ads, that means a certain amount of people that you cannot track are going looking for you on Amazon. And if you know that you can retarget them, you're at least gonna stay in front of them on Amazon and hopefully improve your return on ad spend on that Facebook ads. If you're wondering if Amazon DSP is right for you, link is in the description. My boy Sam is our VP of DSP. He is a master and he'll tell you honestly if it will work or not.
00:07:17
Speaker
And guys, if you need any help with your Amazon account, feel free to reach out to get a free audit from me and my team. I'll put the link in the description of this podcast, or you can go to the website. It's triviumco.com and just click on get a free audit. Basically, it's an audit that goes through your entire account and gives you actionable things that you can do to improve.
00:07:34
Speaker
All right, guys, see you in the next episode.