Building a Full-Funnel DSP Strategy For Amazon Sellers

• Barrier to Entry: DSP isn’t as easy to access as Seller Central; it requires Amazon-approved agencies or meeting certain spend thresholds.
• Initial Challenges: Early misuse led to its reputation issues, as many advertisers applied blanket strategies, not optimizing DSP for unique brand/product needs.

• Understanding Customer Journey: Higher-priced products require longer consideration windows, so retargeting timelines should vary.
• Tailoring Campaigns by Product Type: A $10 product doesn’t need a 30-day retargeting window, while a $200 product may need up to 45 days to properly engage the audience.

• Return on Ad Spend (ROAS) and Total ROAS as primary performance indicators.
• Effective Cost Per Detail Page View: Lower costs (below $1) signal efficient DSP campaigns, with top performers achieving $0.50 or less.
• Percent of Purchases New-to-Brand: Indicates how well DSP attracts fresh customers, avoiding retargeting those already inclined to purchase.

• Optimal Spend Range: While larger budgets provide more data for refinement, DSP can still be tested effectively at lower levels if PPC campaigns are fully maximized first.
• Synergy Between PPC and DSP: He advises investing as much as possible into PPC until returns diminish, then strategically layering DSP to further boost conversions.

1. Sales Deduplication Knowledge: A solid understanding of deduplicating sales between DSP and PPC, often through merchant tokens, which ensure accurate attribution.
2. Customized Campaign Strategy: Effective DSP managers tailor retargeting windows and budgets based on product price points and sales cycles, avoiding generic settings.
3. Expertise with Streaming and Video Ads: Familiarity with OLV (Online Video) and Streaming TV (OTT) can add value to campaigns, especially for brand awareness.

• OTT vs. OLV: OTT, or Over-the-Top Media, is a more premium option, placing ads on streaming platforms like Hulu and Prime Video, while OLV covers a broader online space (e.g., ads between games or online content).
• Use Cases: Streaming ads are highly effective for certain brands but come with higher costs, while OLV offers a budget-friendly alternative for brands targeting broader, online-savvy audiences.

• Application for Non-Amazon Sellers: Brands not selling on Amazon, like car companies or public services, can still use DSP to target potential customers based on Amazon’s deep data insights.
• Geotargeting and Demographics: For example, public transit services like LA Metro have used DSP to target specific areas, showing the versatile applications of DSP data.

• Bayesian Update System: Amazon’s algorithm adapts based on live data (clicks, conversions), helping high-performing products “win” visibility quickly while demoting less successful items.
• Behavior-Driven Launch Strategy: For launches, a well-optimized DSP campaign can create significant early traction, contributing to better search rankings.

• Misleading Attribution: Lack of merchant tokens can lead to inflated success metrics, misleading clients on actual DSP effectiveness.
• Uniform Strategy Application: Applying the same retargeting window or budget across all campaigns, regardless of product type or target audience, can dilute DSP’s impact.

• SEO Principles on Amazon: Amazon prioritizes high-conversion products to ensure users find relevant, desirable items. Successful DSP campaigns enhance this by generating high-quality traffic.
• Cold Start Problem: New products face Amazon’s cold-start challenges, where initial performance metrics determine future visibility. DSP’s behavioral targeting can boost early sales velocity, easing this process.

• Company: Trivium Co.
• Contact: sam.lee@triviumco.com

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