How Non-Endemic Advertisers Can Use Amazon DSP - 2024
It comes as no surprise that Amazon has edged its way into becoming one of the world’s biggest advertising platforms, joining the ranks of Google and Meta as the ‘US Triopoly’ in US Ad revenue.
Brands selling on Amazon have been key in building Amazon’s ads empire, as they are provided with a comprehensive suite of advertising tools that enable them to engage with shoppers both on Amazon’s marketplace and across 3rd party websites and publishers.
But what happens if you don’t currently sell on Amazon, or can’t sell on Amazon? Are you still able to take advantage of Amazon’s advertising platforms? The answer to both of these is a resounding yes! (…but as always, with a small number of caveats which we will cover).
Endemic vs Non-Endemic Brands
In the world of Amazon advertising and retail media, the term ‘Endemic advertising’ simply means a business who both sells their products and advertises on the marketplace where the purchase transaction occurs i.e. a haircare brand who sells their shampoo on Amazon who also advertises its shampoo products on Amazon through Sponsored Ads or DSP.
Non-endemic brands are the opposite to this, meaning that ads are purchased in a different ecosystem to the marketplace where the transaction happens. For example, an airline brand using Google ads to drive traffic to their own brand website or in the case of Amazon, an automotive brand using Amazon DSP to engage with potential new car buyers that drives users to their own brand website to book a test drive.
The Rise of Amazon Non-Endemic
With Amazon having taken a stronghold over its own endemic advertising solution for brands and sellers who sell on Amazon’s marketplace, the natural growth opportunity for the Amazon ads business is to expand into the areas that where traditionally, Google & Meta have held such a prominent grip on the digital ads landscape and go after non-endemic brands.
With the growth of Amazon’s DSP buying platform, as well as the increasing volume of exclusive premium websites and online properties that Amazon now owns, such as Twitch, IMDB and proprietary devices such as FireTV, Fire Tablet and Kindle e-readers, there are more opportunities for businesses of all types who can utilise Amazon’s unique offering combined with its extensive and unique shopper data.
Overview of Amazon DSP
Amazon DSP is an all-in-one advertising platform that enables brands to programmatically serve display, video, and audio ads that appear across Amazon’s vast media network and on non-Amazon websites.
Using Amazon DSP, brands can tap into Amazon’s extensive first-party shopper data, enabling brands to deliver hyper targeted ad campaigns based on key user signals. This level of audience targeting granularity provides brands with the control to target the right shoppers, at the right place and at the right time to deliver supercharged business results.
Amazon’s DSP works along-side Amazon’s other major advertising solution, Sponsored Ads - and combining the two can lead to powerful ad campaigns that can give the edge over competitors when reaching shoppers.
See how DSP can work for your business and download our Amazon DSP Guide on how to get started.
Why use Amazon DSP for Non-Endemic brands?
Amazon first-party data
As a marketplace sales platform, Amazon has insight into not just what shoppers are browsing and searching for, but also what they are buying, from which brands, for how much and how frequently. This exclusive shopper data is incredibly powerful, both for endemic and non-endemic brands and provides incredibly granular level of rich shopper data that brands of virtually any type, size or category can take advantage of.
For example, let's consider a removal company operating in a specific region of the UK. By utilising Amazon DSP, they can precisely target customers within their geographical area who have also displayed buying signals related to home relocation. Similarly, a brick and mortar business selling cars can tap into Amazon's Garage data to target owners of specific car makes, models, and ages. Airlines can reach out to users who have recently shown interest in travel-related items or have explored destination-specific guidebooks. The possibilities are vast.
Expand reach into Amazon’s Owned and Operated inventory
Amazon offers an increasing range of advertising placements across its exclusive owned and operated inventory. By utilising Amazon DSP, non-endemic brands can tap into this expansive ecosystem, including placements on Amazon's own marketplace websites, TwitchTV, IMDB, FireTV and tablet devices. This allows brands to extend their reach and connect with Amazon's vast customer base.
Tap into high quality inventory using Amazon Publisher Services
Amazon Publisher Services (APS) offers access to a broad network of premium publishers, including the majority of Comscores top 250 publishers ensuring high-quality and brand safe inventory for advertisers regardless of how much or how little buying power you have within the programmatic landscape. Non-endemic brands can leverage Amazon’s buying power and pre-built list of publishers to run either a direct or indirect relationship with publishers as and when they choose. This is huge for brands looking to get into building 1-2-1 relationships with publishers who their target audience frequently visits and trusts. For example, a challenger coffee brand selling on their own branded website can build a relationship with BBC Good Food to help place ads targeted to high value coffee website visitors. APS also offers brands with full and complete transparency into the performance of each individual website and publisher, enabling brands to make informed decisions when optimising any future publisher partners or simply to dial up or down media investment delivered to certain websites.
Sponsored Display - Soon to be available for non-endemic
During last years unBoxed event in October, Amazon announced that Sponsored Display advertising would be made accessible for non-endemic brands - opening up the option for businesses to use Amazon’s Sponsored Ads platform available to sellers through Seller Central. Currently, this option is limited to US brands on Twitch inventory as a invite only closed Beta, however we expect to see this gradually open up to the wider public and not just limited to Twitch inventory, instead being available for wider selection of websites and publishers off Amazon.
Caveats
It's important to note that non-endemic businesses deemed direct competitors by Amazon may be rejected and prevented from running non-endemic ad campaigns. These businesses typically include other online marketplaces such as eBay, Etsy, Wayfair, Walmart, and Target. Amazon is cautious about sharing valuable first-party data and providing competing marketplaces the opportunity to serve their ads on Amazon's marketplace or owned and operated inventory.
Unless your business is considered to be any of the above, you should be fine and available to use Amazon DSP for non-endemic advertising.
Accessing Amazon DSP
To get started with Amazon DSP you will need to decide between a Managed-Service or Self-Service offering.
If you want Amazon to manage your DSP, then Managed Service is your choice. To access this service, a minimum ad spend of $35,000 per month is required.The alternative solution is going Self-Service, whereby the DSP is entirely handed over to the certified advertising agency who will plan, manage and optimise your campaigns.
Choosing Self-Service grants you access to programmatic advertising experts, with knowledge of multiple verticals, campaign types and channels. This can help save your business time and money, easing the pressure of having to manage and deliver advertising performance.
Self-Service does not come with the $35,000 minimum spend imposed by Amazon. However, it's important to note that the minimum spend amount can vary depending on the agency.
With VERBEs agency access, we are able to offer the opportunity for non-endemic brands to use Amazon’s DSP for their business. The minimum spend for VERBE to manage advertising through Amazon’s DSP is $5,000 per month, including full management of your activity and reporting + analysis included.
