Monday, January 30, 2023

Is Amazon Dsp Worth It

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Attribution: Where Your Sales Come From

Amazon Home Delivery DSP Business Opportunity – Is It REALLY Worth It?

Attribution is the name for measuring where your sales have come from.

PPC offers easy attribution: you can see when someone has clicked an advert and whether they bought the product.

You can do that with DSP too, but because itâs display advertising, we think there are more sales associated with it, based on the power of your ads to influence buyers – and those are harder to attribute. After all, you can’t track the effect of a person seeing an ad, being influenced by it over time, and buying the product later.

But you can still measure your full DSP attribution rate, particularly if you measure sales before you start your DSP campaign.

Amazon Dsp Program: Why It’s Worth Investing On It This 2022

If you’re already selling on Amazon, you know how tight the competition is. So it’s only reasonable that you do everything you can to increase leverage against your competitors. This is one of the reasons why you should consider enrolling in the Amazon DSP Program.

Learn more about what this advertising program is all about and why you should consider enrolling your business in it.

Who Can Use Amazon Dsp

Amazon DSP is available for any seller on Amazon, with a number of caveats.

Unlike regular PPC that can be managed by sellers themselves, Amazon DSP can only be run on a sellers behalf through either Amazon or through a recognized partner agency that have been authorized by Amazon because they have gone through their training.

In order to run it through an Amazon-managed account you must commit to a minimum campaign budget of $35,000.

The partner agencies allowed to run advertising through Amazon DSP for clients are slightly more flexible on budgets, but the reality is this is still only really for big brands who are close to maxing out their ad potential on Amazon and so need to look beyond the platform to continue to scale.

If a brand isnt already spending $200K-$300K a year advertising on Amazon, adding DSP probably isnt going to make sense. However, if theyre running a budget of $500K+, DSP should definitely be a part of that.

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What Do You Say

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Other reports say there has been high levels of interest in the DSP program, with thousands of applications submitted and evidenced in part by the huge number of vans Amazon ordered in 2018.

Amazon is of course growing rapidly. Is the Delivery Service Partners program a good opportunity for you to ride that wave? Amazon says the initial DSP investment can be as low as $10,000, with Amazon providing subsidized leases for vans, insurance and other elements needed to get the business off the ground.

It expects DSP participants to eventually acquire fairly rapidly 20 to 40 of the vans, and at the top end of that range make profits of $300,000 annually. What’s more, Amazon says no logistics experience is necessary to get into the program, which starts with three weeks of training at Amazon’s headquarters in Seattle.

And Amazon entices would be DSP entrepreneurs by saying it offers the chance to make good money without the need to be involved in selling activities.

But before you run to fill out and application, take the plunge and invest and launch in your own DSP delivery business, there are some areas of significant concern, says franchise expert and consultant Robert Edwards.

Below, we summarize what Edwards, of the firm Franchise City, says are five reasons not to invest in a DSP territory. They are interesting indeed.

What’s more, Amazon itself obviously does not find the delivery process attractive enough to build out its own direct capability.

Where Do Sponsored Display Ads Appear

What is Amazon DSP? How to get started and advanced strategies

First, let me clarify the difference between Sponsored Display, Sponsored Brand, and Sponsored Product ads with examples of Brand and Product ads.

Sponsored Brand and Sponsored Product ads appear in that order at the top of the first page of keyword search results on Amazon.

Sponsored Display ads, on the other hand, may appear on Amazon or on third-party websites and apps , depending on the targeting option you choose.

Heres an example of a Display ad using product targeting or audience retargetingit appears right below the product description on a competitors listing.

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Sebastian Festa Founder Of Prime Lightning Logistics Orlando Florida

Sebastian Festa has always been inspired by his fathers generosity and willingness to help others. He recalls his father regularly inviting neighbors over for dinner and sharing whatever they had, despite his familys own struggles to make ends meet. Motivated to break the cycle of poverty, Festa went to college and sought career opportunities that allowed him to support his family while maintaining his mission to help others. When he learned about Amazons DSP program, Festa believed that he found the opportunity he had been looking for.

Since joining Amazons DSP program in 2018, Festa has grown his company, Prime Lightning Logistics, from 10 employees to 130. The success of Prime Lightning has enabled Festa to provide for his family, while also giving to local nonprofits like the Boys & Girls Club of America. Since his fathers passing in 2018, Festa looked for ways to honor his giving spirit and love for his home country of Haiti, and in August 2020, Festa began raising funds for Hope for Haiti, a nonprofit that supports social and economic development on the island nation. Knowing the strength of the Amazon DSP network, Festa reached out to fellow DSP owners, asking them to come together and raise funds for the organization. As a result of this collaboration, Festa, in partnership with more than 50 fellow Amazon DSPs, raised $170,000 for Hope for Haiti from 2020-21, and they aspire to grow their contribution to $200,000 in 2022.

An Update On Contractor Experiences And Where These Investments Will Trend

Amazon Logistics is the hot story in logistics news this past year. However, most of the news isnt actually informative for investors. How much does it cost to buy Amazon routes? Are they good investments? Whats it like to own/operate Amazon routes?

As promised, we are keeping our eyes on this potential investment opportunity. We connected with a number of our contacts in the logistics space to ask them about the current state and future of Amazon Logistics. Most importantly, we interviewed current contractors moving freight for Amazon.

Heres an update on what its like to invest in Amazon routes right now.

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How To Get More Out Of The Amazon Dsp

Competition within the Amazon Advertising PPC space is fierce. Amazon CPCs are generally going up as more and more advertisers pile into ecommerce.

DSP is not that well known to many Amazon suppliers and may still be out of their budget reach, given the average spend is $269/day. Expanding your reach with DSP will give you the opportunity to leverage audience insights from Amazon and have lower competition with off-Amazon and DSP-only ad inventory.

What Weve Seen With Amazon Dsp

Amazon DSP Drivers Reveal The Challenges Of One-Day Shipping

Adlucents experience using Amazon DSP has shown strong results for one wellness brand client. As displayed in the graph above, weve seen week-over-week growth while we continue to exceed Amazons standard benchmark of a 3-5 ROAS, coming close to reaching a 6 ROAS for this client.

The Amazon DSP program is best for brands that want to programmatically buy ads at a large scale, reach a larger scope of customers outside of PPC efforts, and cannot sell their products on Amazon but want to leverage the data provided by Amazon. Although everyone can use it, if youre not a brand that has at least a $35,000 budget, it may not be worth the investment for you.

To get started, youll need to make an separate from Amazon Ad Console.

Are you looking for an agency to partner with to get you started with Amazons Demand Side Platform? We would love to help!

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What’s The Best Way To Use Dsp

We see two major ways of making the most of DSP.

The first is to ‘double-tap’ your proven audience, getting the most out of them via remarketing campaigns.

Target audiences who in the past clicked on your product but did not buy and audiences who have bought your product before, and sometime later might well wish to buy it again.

This is a sure-fire, high-efficiency method of making money with DSP.

Feeling more ambitious? The second, more growth-friendly way is to build a new audience, based on what you know about your existing customers. You can use DSP to target the demographics that your products appeal to.

This is an exciting way to grow your business: put some really nice display advertising in front of new people and see whether they bite.

Whichever way you use it, Amazon DSP is a great tool to grow your business â not just achieving more sales but stepping up your marketing and competing with bigger players, too.

Want to find out more? Watch e-Comas’s recent webinar on DSP below:

And contact the e-Comas team any time for information and assistance with your eCommerce journey!

The Missing Piece Of The Amazon Advertising Puzzle

Up until now, you could only advertise on Amazon using query based advertising which greatly limited your audience reach.

But with Amazon DSP, you can now reach practically any shopper on the Internet. In fact, Amazon DSP is disrupting the entire advertising industry much like how Facebook advertising took the world by storm not too long ago.

Unlike Facebook and Google however, Amazons data is solely focused on shopping which makes their audiences the most valuable for ecommerce.

If you want to take advantage of Amazon DSP, then reach out to your favorite Amazon ads agency partner today. After all, 90% of Amazon sellers arent leveraging these ads right now because of the ad spend minimum.

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Top Tips For Getting Started With The Amazon Delivery Service Partner Program

Amazon delivery partners are in charge of their own success. Everything you do finding the right location, building your team, interviewing a driver, choosing from a pool of administrative candidates will have a direct impact on your success, and amount of profit.

There are additional factors that affect your success, such as your own level of logistics experience and your affinity for hard work.

Here are some tips for success:

  • Negate the startup costs with access to a Diversity Grant. Amazon is offering $10,00 grants to applicants who are Black, Latinx, or American Indian.
  • Know your jobs market and area. Whats the status of the workforce in your location Will you have access to good workers? Take advantage of your access to Amazon company guidelines and teaching on how to hire and train people, and build a team.
  • If you dont have extensive logistics experience, take advantage of the support offered by Amazon. Amazon offers support to DSP partners 24/7.
  • Business owners should be comfortable in leadership roles in a company and know-how to build a good team. Leadership is a key to success in any company.
  • How To Run Amazon Dsp Ads

    Whatâs the Difference Between Sponsored Display and Amazon ...

    Amazon DSP ads are heavily based on machine learning. You basically tell Amazon who you want to target, which products you want to sell, when to run your ads and Amazon does the rest.

    Amazon DSP ads can also be created automatically using Amazons ad creation tools but in general, its in your best interests to create your own ad creatives.

    Once youve created your ads, Amazon will then place them on various websites, figure out which ads convert and continuously optimize your campaigns.

    If you have your own online store, you can also put a pixel on your own site which will pass Amazon information about your store visitors which you can then use to create lookalike audiences etc

    Editors Note: When implementing the Amazon pixel, you should be wary of what information you want to pass them. After all, Amazon has been known to take seller data and release their own competing private label products!

    In general, Amazon DSP ads tend to convert better when you are sending visitors back to Amazon and not to your own site.

    However, if you have a high customer lifetime value, then you may want to try to nab the sale on your own shop.

    The true power of Amazon DSP is the wealth of Amazon specific customer information you have access to for targeting your ads.

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    S To Start Your Amazon Delivery Business

    Amazon has launched a new program that helps people who live in the U.S. to start their own franchise business delivering Amazon packages. You can start your own Amazon delivery business for an initial investment of $10,000.

    When you become an Amazon Delivery Service Partner , the online retailer helps you with leasing vans, insurance, gas cards and training to manage your own fleet of delivery vans.

    According to Amazon’s website:

    “We are looking for hands-on leaders who are passionate about hiring and coaching great teams.” With low startup costs, built-in demand, and access to Amazon’s technology and logistics experience, this is an opportunity to build and grow a successful package delivery business. Join a community of Amazon delivery service partners in one of the fastest growing industries in the world.”

    If building a business with the knowledge that you will have delivery volume from the biggest online retailer in the world while having access to cutting-edge technology interests you, keep reading, as well give you the steps for how to start your Amazon delivery business.

    Here’s some more information about becoming an Amazon DSP.

    How To Get Started With Amazon Dsp Bottom Of Funnel Ads

    The quickest and easiest way to get started with Amazon DSP ads is to simply run a retargeting campaign.

    Here are your retargeting options.

    • Amazon Pixel Remarketing You can retarget customers who shopped on your own website
    • Amazon Product Remarketing You can retarget shoppers who viewed a specific product but didnt buy
    • Amazon Brand Remarketing You can retarget shoppers who viewed ANY of your products with a brand specific ad
    • Amazon Similar Product Remarketing You can run ads to shoppers who browsed similar products to yours
    • Amazon Cross Sell Remarketing You can run ads for complementary products to your existing customer base

    To begin, you simply create an Amazon audience made up of shoppers from one of the above categories.

    You then create an ad for that product in all of Amazons supported ad sizes as shown below

    Ad Placement
    100 kb JPG / PNG-8

    Remember, you can allow Amazon to create all of your ads for you but in general, its better to make your own so you can include your unique value proposition.

    Heres what my ads look like.

    Heres my page where Im driving the ad traffic to.

    Heres how my retargeting ads performed last month

    Right now, Im getting about a 3X ROI but Ive only been running DSP ads for about 3 months. Over time, my ROAS will improve with further refinement.

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    Amazon Logistics Dsp + Linehaul

    Similar to FedEx Ground routes for sale, Amazon Logistics has two distinct camps: linehaul and Delivery Service Partners . The DSP routes most closely resemble FedEx Ground P& D routes.

    As of this writing, contractors that own DSP routes are not allowed to sell their routes. There is currently no way to invest in these types of routes without going directly through Amazon.

    Make The Most Of Your Data

    Answering your Amazon Delivery Service Partner (âDSPâ?) Program Questions!

    Not every product needs a DSP full-funnel approach your data will guide you. Success on Amazon is all about data and how you use it to your advantage. Using the many levers at your disposal provided by the DSP and PPC ads will be key to staying ahead of the competition. Future-proofing your DSP strategy needs to be part of success on the future of the platform.

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    Why Should I Use Dsp

    Among our clients, we’ve seen typically a 20% increase in sales from using DSP.

    DSP is Amazon extending its advertising reach: it’s more or less hit the limit of what it can do with advertising on Amazon itself, so it’s reaching further, and you’ve got the opportunity to reach further with it.

    We think it’s especially effective for smaller brands that don’t have the presence of a household name: big brands with their own massive ad campaigns aren’t using DSP as much, so smaller brands are not being pushed out.

    Just like with PPC and Sponsored Brand ads, you can use DSP to attack your competitors as well as protect against them doing the same to you.

    And we’ve seen that the audience targeting available with DSP is as effective, if not more effective, than Sponsored Display advertising on Amazon.

    Thereâs a powerful ability to retarget customers, plus the ability to segment audiences and tailor the creatives, giving you more freedom and options when optimizing a campaign.

    What Makes The Amazon Dsp Program Stand Out

    The biggest difference between DSP and other Amazon tools is the data. Its helpful for targeting customers based on their behavior, such as purchase history, brand affinity, and searches performed. This data is updated in real-time since its first-party data that allows brands to make well-informed decisions and adjust their targeting strategies quicker and more accurately. Keep in mind that search is still fundamental and display should be built out in tandem to create a full-funnel experience. As mentioned in Adweek by Criteo executive vice president of retail media, John Roswech, 2020 will be the year for marketers to stop thinking of Amazons search ad product and DSP as separate from their search marketing or programmatic advertising strategies.

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