Jacob Statler

 

Amazon has claimed to have revolutionized the advertising game for brands looking for programmatic advertising through the use of their DSP (Demand Side Platform).

Amazon’s DSP is built to find the most relevant ad spaces across all Amazon platforms (Prime, Prime Video, Fire, etc.) available in your niche for your budget.

How do these claims of a customized strategy hold up, and how does Amazon operate compared to other advertising platforms?

Let’s discuss:

Programmatic advertising with amazon

Programmatic advertising is an algorithm used to seamlessly purchase digital advertising opportunities that are in a position to target audiences based on data from previous traffic patterns.

This algorithm is much less time-consuming than manually bidding on each of your preferred ad spots. 

Think about it:

Less time and resources focused on advertising means more time invested in your business.

Paired with Amazon’s DSP, programmatic advertising gets your brand in front of people that are more likely to click on your product or service. A more targeted audience means more conversions from paying customers.

Amazon incorporates these ergonomic tools to give you transparent insight into your ideal demographic. While simultaneously, you get the ability to purchase the best advertisement spots relevant to your niche.

This technology searches and finds the best opportunities for your brand across Amazon with details that even an ad research team couldn’t accomplish at scale.

What to know about amazon’s DSP: Aspects and benefits

A DSP gives advertisers a transparent view of their entire marketing operation. Think of it like the birds-eye-view of advertising details.

The Amazon DSP delivers insight into billions of visitors across all Amazon platforms to find your ideal audience to target and advertise.

Performance reporting

Reviewing the stats of your project is essential in optimizing impressions and conversions.

The Amazon DSP shows you how your ads are performing with insights like conversion stats, repeat customers, and other details to help you retarget toward your ideal audience.

Contextual targeting

Amazon’s DSP targeting allows you to advertise to specific audiences that show or have shown interest in your brand’s niche.

Amazon’s DSP is huge when compared to ordinary banner ads with other publishers that blindly post your banners or videos. Tailored targeting will display your product or service to people most likely to click and consume, increasing conversion rates, and saving you money on missed opportunities.

Between Amazon’s many services, different brands will have better success on different platforms. For this reason, you can select whether you display your ads on Prime, Prime Video, Fire TV, IMDb, or other 3rd party sites.

Not only can you select a platform, but Amazon also offers ad targeting according to demographics such as devices (mobile, desktop, CTV), information into the potential consumer, the times that your ads are displayed, and many other statistic audience details.

Demographics

How well do you know your audience?

Amazon’s DSP breaks down everything about your audience from the device they’re using, to the age of your consumer and the exact time of purchases.

Amazon displays these stats to give you the best idea of your average consumer, which is beneficial for long-term conversions.

Transparent demographics will help you understand your traffic patterns and business services. This may even reveal that your targeting strategy is irrelevant to your largest consumer.

For example: Let’s say that your ads usually target college students, but demographics reveal that your product is most popular with people from nursing homes.

Would a change of tone in your advertising increase conversions? 

Of course! But you wouldn’t have known the inaccuracy of your branding if it weren’t for these demographics.

Transparent Ad Marketplace

Amazon Publisher Services works as a connector between bidders.

Whereas most ad marketplaces leave individuals blind to the entire operation, Amazon’s Transparent Ad Marketplace serves as a crystal-clear auction, showing third party bids between everyone equally.

With an SSP (Supply-side Platform) fee of $.01 CPM (Cost Per Thousand) to bidders, Amazon’s rates for advertising bidding are comparable to few others.

How to sign up for Amazon Ads

Applying for video ads on Amazon can be done through a webpage with two fields:

moblyft - amazon advertising - ott - ctv - advertising

The 1st field asks for information about your inquiry, or “About you.” The only two fields relevant to marketing are for advertising products “On Amazon,” or “Not Available on Amazon.”

The main difference between these options is the required budget.

If you’re advertising for a product already on Amazon, you can jump right into the advertising with a minimum budget of $1.

However, if you intend to advertise your brand and link outside of Amazon, it’s a bit trickier with the second field:

“Would you like to connect with an Amazon Advertising consultant?”

Again, with products already on Amazon, you can skip this step and hop right into advertising unless you do want to work with a consultant.

The biggest catch is for third party brands. 

Amazon requires any company outside of Amazon to work with a consultant to optimize the project. Working with an ad consultant can be beneficial, but the minimum budget to work with them is $35,000, this can be a big hangup for smaller companies with smaller ad budgets.

These consultants communicate with you to understand your goals. This helps Amazon to optimize your project advertising for the best conversions fully.

Consulting, on top of Amazon’s DSP, is pretty much guaranteed to get your brand in front of your ideal audience, which will also boost organic advertising from the targeted relevancy.

Display ads for Amazon

As far as the ads themselves, you can choose to use your own display assets, or customize one using Amazon’s advertisement banners.

A common misconception is that only businesses selling through Amazon can utilize their ad space.

It’s worth noting that these banners don’t have to link back to an Amazon product. You can display an advertisement that links back to your own website off of Amazon.

Display ads sell at rates of CPM or Cost Per Mile (thousand impressions). 

These display ad rates are impression-based, rather than by-the-click. This fact may sound discouraging, but because Amazon’s DSP targets your most relevant audience, these impressions will have very high conversion rates.

Video ads for Amazon

Suggested to be 15 seconds at most, Amazon video ads autoplay when at least 50% of the video is in the frame. The ads play inside a box with a call-to-action inside. Usually, the CTA is a “Learn More” text linking to your website.

Purchasing video ads on Amazon is similar to display ads:

  • You have your choice of advertising platform.
  • Amazon DSP allows you to target your ideal demographic under ideal circumstances.
  • Advertisements can be unrelated to Amazon.

There are some differences that you can use to your advantage as well.

For one, you can purchase video ads targeted to Amazon’s Fire Tablet in the wake screen. This is a very unique and new ad targeting method that many companies are still trying to optimize.

This option, still in its beta phase for Fire Tablets, offers different options like a customized background. Plus, these ads take up the entire screen for a short time, meaning your audience will have to take action and either convert or skip the ad once allowed.

Amazon Prime Video is another example of a unique advertising opportunity. Increasingly relevant OTT platforms like Prime Video have access to audiences that other options like cable TV don’t. Prime Video gives you the ability to target specific potential consumers using the same DSP algorithms as with display ads.

Amazon Prime Video and Fire TV marketing breakdown

Streaming TV is becoming a more prominent option for entertainment consumers.

Between Prime Video, Hulu, Netflix, Sling, and so many others, entertainment consumers are migrating from traditional TV toward primarily using OTT channels.

As a result of better metrics and targeting, advertisers are having better luck getting the most bang for their buck with marketing through streaming platforms instead of local tv advertising.

As we learned earlier, DSP’s targeting gets your brand in front of people most likely to show interest and convert while also offering a call-to-action link. While on the other hand, outdated cable advertises blindly to a broad range of consumers with little or no call-to-action available.

Amazon may just be one major player in this massive influx of immediate content, but Amazon plays a more significant part than only streaming content. Using Amazon Prime, they also offer marketing services for multiple platforms through Fire TV.

Out of these leading streaming services, Amazon continues to be the cheapest option as well.

As with any boom in the industry, the main question that businesses are asking is:

How can I reach these massive audiences to promote my brand or product?

We’ll go over programmatic marketing options for both services, but let’s first break down the differences between them:

Amazon Prime Video vs Fire Stick TV

Prime Video is Amazon’s OTT streaming service and one of the most popular entertainment options for 2020, whereas the Fire Stick is a CTV (Connected TV) that acts as a portal to tons of other OTT apps and services.

So Prime video is comparable to Hulu or Netflix, offering specific shows or movies.

Fire is more like Roku, hosting OTT services themselves like the ones previously mentioned on a broader scale while being able to advertise to a much wider audience.

With these differences in mind, we can now discuss how you can advertise for each.

Amazon Prime Video OTT programmatic advertising

Because Amazon keeps its services intertwined like a web, getting started with Amazon Prime Video is very similar to marketing through Amazon’s other services.

Assuming your brand is not related to Amazon, a consultant will work with you to build your campaign. While at the same time, DSP’s and programmatic advertising use algorithms to search for the most ideal ad space to display to your ideal audiences.

OTT ads are almost primarily video ads, which is best considering Prime Video consumers are already surfing to watch entertainment content.

You can choose whether you’d like your video ads to be displayed traditionally, throughout, before a show or movie, or you can select video banner ads to show up on the surfing web page.

Amazon incorporates OTT display ads ergonomically by placing them in the header of different sections of Prime Video. This allows video ads to play automatically. Video ads are muted by default but can be switched on by the user in an area of the screen that is noticeable, but not in the way of user experience.

Amazon Prime Video vs Other OTT options: One big marketing advantage

A notable advantage of advertising with Amazon Prime Video is the massive audience that it holds.

Every Amazon Prime customer is also a member of Prime Video. Not to mention the low price that the package comes in, regular Prime users have a seemingly free opportunity to check out Prime Video.

This extra value adds incentive to potential Amazon customers, which leads to a broader audience for you to narrow down and target.

The average Prime customer spends $1,000 on Amazon annually. Since this average applies to Video Prime members as well, most viewers are already loyal and trust Amazon with their money.

The dedicated Amazon audience also means that every OTT user probably also has their shopping patterns embedded in Amazon’s data. These same shopping patterns add insight for you to advertise!

Amazon Fire Stick connected TV advertising

Amazon Fire Stick is a device that plugs right into your TV to convert your traditional TV into a CTV device that offers so many more advertising opportunities.

Ads through Amazon Fire appear in the dashboard before selecting an app, usually in the form of video banners tucked into the heading of the screen.

Fire advertisements can even feature call-to-action buttons and send users into Amazon or other platforms from their TV using the provided remote.

As opposed to marketing with just Prime Video, Amazon Fire Stick can cover a much broader audience.

Here’s how:

With tons of OTT channels available, advertising with Prime Video is only reaching a relatively specific audience. However, Amazon Fire hosts all OTT services and reaches a much wider audience before they go their separate ways into the OTT app of their choice.

So why settle for a tiny branch in OTT when you can take a step back and toss your relevancy net over a river of potential consumers in the CTV space?

As with the other methods of video advertising, the price of CTV advertising really depends.

Some variables for pricing are the format of your video, where you’d like it displayed, the competition of your market niche, and your audiences’ demographics.

Advertising with Amazon can get complicated

So, why choose Amazon for your advertising campaign?

At the end of the day, the main attraction with Amazon is the brilliant targeting and transparent metrics reporting for billions of visitor interactions.

Although advertising with Amazon has massive benefits to your brand, the difficulties can seem overwhelming to the untrained eye. Sometimes it may be best to focus on your business while you hire a professional team to take the hassle off of your plate.

You shouldn’t let confusing acronyms, dealing with consultants, bidding on ad space, or even knowing which ad space to bid on through a DSP discourage you. Getting your service in front of your ideal audience is worth it.

Are you ready to generate more results for your business with an Amazon OTT campaign? Contact us today to take your business to the next level. Request our media kit and review our case studies today.