What is the difference between Amazon DSP and SP ads? How do they work?

There are more and more ways to play on the Amazon platform, such as Amazon reviews, Amazon advertising promotion, etc., and you can often see many friends sharing their successful experiences. So the question is, do you know the difference between Amazon DSP and SP advertising?

Sponsored Products

The great thing about Sponsored Product ads is that they integrate well with listings and search results. It’s almost indistinguishable to buyers, who will most likely assume that the product is at the top of the search results because of its popularity. And you can run ads with a budget as low as $1 per day.

Sponsored Display

Amazon has launched a self-service advertising solution called Sponsored Display, replacing its Product Display Ads. Sellers can take their business to the next level by improving their discoverability and off-site customer reach. With Sponsored Display, you can successfully target a larger percentage of Amazon’s customer base.

One difference between Amazon Sponsored Display ads and Amazon Sponsored Brands and Sponsored Products ads is that they do not appear in front of customers based on keyword searches.

This means that when a customer visits Amazon.com and types what they are looking for into the search bar, Sponsored Products and Sponsored Brands ads appear in search results based on what the customer is looking for. Sponsored Display works a little differently, and these ads are primarily based on customer behavior. Sponsored Display targets customers who:

They purchased the same or related products as you;

They are browsing product listings similar to yours.

They’ve seen your product before;

They have bought your product before;

They are browsing the product category in which your product is located;

Based on your products and customer behavior, your ads can appear in many places outside of Amazon.

How to use Amazon DSP and how much does it cost?

Amazon DSP display ads are charged based on CPM, which is times per thousand impressions. Taking the United States as an example, the estimated CPM is approximately US$4. Sites in other countries are generally lower than the US site.

There are two ways to deliver DSP display ads: 1. Through Amazon’s dedicated advertising manager, 2. Through Amazon’s authorized agents.

Each site has different requirements and a limited minimum contract amount, the lowest of which is about $5,000/month. It is recommended to fully understand the DSP budget of each country and how to set it before launching. You can contact the advertising manager to communicate business needs and goals, and then customize your own DSP advertising plan based on the category situation.

I hope everyone understands that most of Amazon’s advertising display channels are on the site, and Amazon tends to always give priority to all new resources to Amazon DSP display ads.

Recommended reading:

What does Amazon sku mean? What are the Amazon sku coding rules?

Where can I find the Amazon ASIN code? What is the ASIN code?

Where can I view Amazon traffic? How to distinguish between organic traffic and advertising traffic?