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Accelerate target groups: The solution is called Amazon DSP

Based on the Amazon First Party Data, the Amazon DSP enables precise and efficient targeting of target groups with display advertising and leads to interaction.

Accelerate target groups: The solution is called Amazon DSP

Monday September 09, 2019,

9 min Read

Demand Side Platform (DSP) is one of the buzzwords of recent years. But why are these technological infrastructures increasingly becoming the focus of automatic shopping for online advertising space? What are the advantages of display advertising? And why should you have the Amazon DSP on the slip?

That's why DSPs are so relevant

DSPs, which represent the buyer side in programmatic advertising, submit offers for individual advertising plays. This is done by analyzing the incoming information of the website based on data. This data is what makes DSPs so interesting. After all, advertisers can determine which plays they are interested in and, in addition to specific environments, play locations and price limits, also select specific target groups .


But for whom is display advertising interesting at all? With display banners, advertisers can reach a much larger audience at different stages of the customer journey than Search ever would. The reasons for the use of different can not be. Do you want to get attention for your own brand, products or services and thus create a long-term need? 


Do you want to reach customers who are interested in their own product category, but do not consider their own brand? Or do you want to convert prospects of your own products into buyers and buyers into loyal customers? For all these goals, the use of display advertising and thus DSPs is recommended.


The DSP (formerly AAP) not only allows to advertise outside, but also within Amazon and linked sites. Thus, the Amazon DSP reaches about 80 percent of the German Internet population and , due to the consistent Amazon login, also device and across formats . In addition, it lures with an ad format that nobody else has: Dynamic e-commerce ads , which shopping information, for example, a review or a "Buy Now" button directly in the ad and therefore optimal for re-targeting campaigns of products on Amazon suitable.


Most importantly, the DSP works on the basis of exclusive First Party Data. That is, information that Amazon collects about its customers. This data goes deep into the search and buying behavior of millions of buyers and is the digital gold for advertisers.

Amazon's target groups provide a true treasure trove

The Amazon DSP platform offers the opportunity to use not only the Amazon Audiences (with exclusive First Party Data) but also company-specific target groups ("Advertiser Audiences"). In addition to data from the Data Management Platform ("DMP") and the company's own CRM data ("hashed audiences"), the Amazon pixels offer a special opportunity. 


This way, traffic and conversion pixels can be implemented in the in-house web shop and non-converted visitors can be recorded with re-targeting campaigns. Re-targeting has the advantage that potential buyers, who have already dealt with a company's products and brand and expressed their interest, form the core target of the campaign.


Being in the bottom of Conversion Funnel , this type of ad campaign usually has the best return on ad spend (ROAS) and is great for purchase goals.


While classic targeting such as demographics are not a peculiarity in today's world, the behavioral audiences are extremely interesting. Amazon offers two types of target segments: lifestyle and in-market audiences. The peculiarity arises from the data that Amazon owns from its millions of users and buyers. 


So Amazon has information about the search and purchase behavior of all its customers. In this way, it can be determined whether a user is interested in, for example, energy efficiency products or even a cat lover ("lifestyle"). In-Market segments are used to identify users who are likely to make a purchase in a specific area, such as: B. Camera and take photo, since they were active in this category in the last few days. 


In total, a total of 451 in-market and 186 lifestyle segments can currently be selected and combined to achieve the most relevant targeting possible. In addition, the fact that the user probably already has an Amazon account and can order in the fastest case with one-click button immediately. 


The combination of relevance and usability may make it more likely for customers to make a purchase compared to other display ads. that the user probably already has an Amazon account and in the fastest case can order immediately via one-click button. 


The combination of relevance and usability may make it more likely for customers to make a purchase compared to other display ads. that the user probably already has an Amazon account and in the fastest case can order immediately via one-click button. The combination of relevance and usability may make it more likely for customers to make a purchase compared to other display ads.

The Sales Funnel is crucial for the choice of the target groups

So Amazon DSP offers a variety of different audiences to use the network. The question of the right audience depends primarily on which advertising target is pursued. This can be answered very well on the basis of the Sales Funnel.


1) Awareness


With the Customer Journey in mind, every journey of a potential customer begins to draw attention to their own product or brand. This goal gives companies the opportunity to generate new demand in the long term by reaching people who have never come into contact with the advertised product or brand. In-Market Audiences, for example, can reach audiences who have already made purchases in similar categories. A linen manufacturer can target buyers of quilts in this case. In addition, Lookalike Audiences can be created based on Advertiser Audiences. These are target groups that have a certain degree of similarity with the company's existing customers.


2) Consideration


Customers in the Consideration Phase have already dealt with products of their own category, but have not yet come into contact with their own brand. In order to generate short-term demand here, the interest of willing persons in certain categories can be directed to their own products. For example, digital camera manufacturers will have at their disposal the in-market segments "Electronics and Photography", "Camera and Photo", "Digital Cameras", "High-quality Cameras and Photographs", "Compact System Cameras" and "Compact Cameras". For a targeted delivery in the consideration phase, it is also recommended to use re-targeting Segments to use by recording those people who have already considered similar or even competing products. In this way an already existing demand can be used effectively and purposefully for own advantage.


3) Purchase


Advertisers can use the existing demand of their own brand and products during the purchase phase . By re-targeting people can be reached, which have already drawn the purchase of its products into account and dealt with the products Audiences. It is also advantageous that buyers can optionally exclude their own brand of the last 1 up to 365 days. In certain categories, such as. B. FMCG, such a procedure makes sense, because the time horizon between purchases is normally a relatively short. So z. For example, manufacturers of kitchen rolls will present their ads to those who have already viewed their own products but have not made a purchase in the last 30 days.


Furthermore, advertiser audiences, ie company-specific target groups, can also be integrated in this phase . One-pixel site visitors, encrypted e-mail lists about hashed audiences, or data management platform customer data.


4) Loyalty


The phase of loyalty is characterized by cross and up-selling. With re targeting measures, existing customers who are loyal to the brand can encourage them to make repeated purchases. The use of buyer segments with orders in the past is recommended. Depending on the product category, the time window (1 to 365 days ago) for purchases made should be set individually. Categories with a higher purchase frequency should be assigned a shorter window of opportunity, while in more expensive categories a longer time horizon is recommended.


In addition, this phase provides another opportunity to showcase loyal customers new products, product enhancements or brand new brand innovations, bringing them back into the Awareness phase. The loyalty of loyal customers is relatively high, which is why they are more inclined to be more open to brand messages and novelties. In addition, by such measures as well as new price offers, z. For example, the Subscribe & Save option increases brand loyalty. At this point in the Sales Funnel, too, it may be useful to implement the Advertiser Audiences via Pixel, Hashed Audiences and DMP.

Conclusion: try Amazon DSP and use the golden data

Is the Amazon DSP now the platform, which helps the final breakthrough of Programmatic Advertising in Germany? That remains to be seen. However, it is already clear: If you want to be successful in the future, you should definitely include the Amazon DSP and the options associated with it in the action plan around the display. On the basis of Amazon's own target groups, consumers can participate in every phase of the customer journey format and device across very efficiently addressed. Because: Google, that knows what we are looking for and Facebook knows what we like. By contrast, Amazon has data that provides deep insights into our buying and searching habits, and therefore reflects, as much as possible, consumers' actual buying behavior. It does not matter if the current marketing goal is branding or re targeting .


With the Amazon DSP attention can be generated for your own brand and your own products. It is also possible to reach consumers who have already dealt with the product category or the products, but have not converted.  Ultimately, in order to assess the true value of the Amazon DSP and to have a say, it is worth the benefits and opportunities once even try on its own products.

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