Clock Icon May 27, 2022

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15 min read

Amazon DSP (Demand Side Platform) for Beauty Brands [2022]

Amazon DSP for Beauty Brands is a tool that allows you to programmatically buy advertising on Amazon and on other websites and apps.

amazon dsp for beauty brands

If you're a beauty brand, then you need to be aware of the Amazon DSP which is part of Amazon Advertising. This powerful tool allows brands to bid on views to specific audiences. In this blog post, we will discuss the basics of the DSP and explain how it can help beauty brands reach more consumers. We'll also provide some tips for using the DSP effectively.  Make sure to always look at your Amazon Brand Analytics to see if your DSP ads are effective. So, if you're looking to expand your reach on Amazon, read on!

What is the Amazon DSP?

The Amazon DSP or Amazon Demand Side Platform is an Amazon advertising platform that allows brands to use programmatic advertising to retarget specific audiences or target more general audiences browsing aisles on Amazon and then show those audiences ads both on and off Amazon. What this means is that you can target audiences to follow around the web and redirect them to your highest priority product detail page. Amazon DSP ads are available to all advertisers, but it is particularly useful for beauty brands looking to expand their reach on Amazon. With Amazon DSP, beauty brands can target potential customers with laser precision, making it an essential tool for any brand looking to grow its business on Amazon.

How can Beauty Brands use Amazon DSP?

Amazon Demand Side Platform (DSP) is a tool that allows beauty brands to create audiences based on specific shopper behavior. If you have efficiency goals, using retargeting can capture consumers who have viewed your or a competitor's items on Amazon but have not made a purchase. This stimulates bottom-of-the-funnel conversions while still drawing in a fair amount of new-to-brand consumers.

If you have scalability goals, like increasing top-line sales, DSP has tools that allow for the highest-funnel targeting within the Amazon ecosystem. Audiences based on shopping patterns, lifestyle behaviors, and/or demographics can increase impressions and views of your product detail pages by targeting larger, broader audiences. This kind of targeting, while it may perform with a low ROAS, can stimulate organic sales and lower search CPCs by increasing your relevance through views of your product detail pages.

Amazon DSP on Weather.com

What are the Benefits of using Amazon DSP for Beauty Brands?

There are many benefits of using the Amazon DSP for beauty brands. Firstly, it allows you to reach a wider audience than you would be able to reach through other advertising platforms. Additionally, it gives you the ability to laser-target your ads so that they are only seen by people who are likely to be interested in your product. This ensures that you are not wasting your time and money on ads that no one will see. Finally, it is a cost-effective way to reach potential customers, as you only pay when someone clicks on your ad.

What are the disadvantages of using Amazon DSP for Beauty Brands?

There are a few disadvantages of using the Amazon DSP for beauty brands. Firstly, it can be difficult to set up and manage campaigns effectively if you are not familiar with the platform. Additionally, there is a risk that you will spend more money than you need to if you do not carefully monitor your campaign expenditure. Finally, there is always a risk that your ads will not be seen by as many people as you would like, regardless of how targeted they are.

How to use Amazon DSP effectively

If you're a beauty brand looking to use the Amazon DSP, then there are a few things you need to keep in mind to make the most of it. Firstly, you need to have a clear understanding of your goals on the platform. Amazon DSP can accomplish a lot, but if you try to do it all at once, you will have a hard time being successful with any of it.

Second, you need to have a basic understanding of your audience While running a DSP campaign you can almost always get a dedicated Amazon rep to pull some data about your existing audiences. This will help you build audiences within the DSP platform that will perform with less experimentation.

Don't underestimate the power of effective creativites. You can create dynamic ads within the DSP platform or upload your own creatives. Either way, make sure you are including the right details, like your brand's name, reviews, and pricing.

How much does Amazon DSP cost?

While Amazon DSP requires a minimum total ad budget of $35,000 if you would like Amazon to manage the ads, a beauty brand can partner with an agency with a considerably reduced ad budget ($5,000 a month).

When it comes to beauty brands, Amazon DSP is a powerful tool that can help you reach your target audience and grow your business. Keep in mind the minimum spend requirements and consider partnering with an agency to get the most out of your DSP campaigns.

If you're looking for more information on how to grow your beauty brand using Amazon DSP, please contact beBOLD Digital.

Where are the Amazon Sponsored Display Ads shown?

Amazon DSP ads can appear on Amazon, including on the homepage, Amazon Live page, product detail page, all reviews page, search page, deals page, and thank you page on Amazon-owned websites, such as Audible, Buy Office Mojo, Goodreads, IMDb, ShopBop, Twitch.tv, and Zappos as well as Amazon-owned apps Amazon devices, such as the Amazon Echo, Fire TV, Fire tablet, and Kindle Affiliate websites and apps in Amazon's network Amazon Ad Specs Amazon's ad sizes and policies can be found here.

Ad sizes:

  • Medium Rectangle: 300x250
  • Leaderboard: 970x90
  • Skyscraper: 160x600 or 300x600

Policies:

  • Ads must be family-friendly
  • Ads must not be misleading or contain false information
  • Ads must not promote illegal activities
  • Ads may not include profanity or offensive language

DSP Advertiser Audiences

The unique targeting options offered by Amazon DSP are divided into six types: In-Market, Lifestyle, Remarketing, Contextual, Audience Lookalike, and Advertiser Audiences. In-Market targeting reaches Amazon shoppers who are actively researching and comparing products in a particular category. Lifestyle targeting reaches Amazon shoppers based on their specific interests, such as outdoors or fitness.

Remarketing allows Amazon sellers to target shoppers who have previously interacted with their brand. Contextual targeting matches ad placements with specific contexts, such as the time of day or weather conditions. The Audience Lookalike option creates a new audience that is similar to an existing customer list. And finally, Advertiser Audiences allows Amazon sellers to target shoppers who have previously interacted with other brands in the same product category. 

Another Amazon DSP benefit is the ability to reach cross-channel shoppers. Cross-channel shopping is when a shopper starts their product research on one channel, such as a beauty blog, and then purchases the product on another channel, such as the Amazon marketplace. By using Amazon DSP, beauty brands can reach shoppers who are researching products on beauty blogs or Fire TV and then serve them ads on Amazon. This allows beauty brands to increase their sales while also building brand awareness.

If you're a beauty brand looking to grow your business on Amazon, consider using Amazon DSP. With its unique targeting options and ability to reach cross-channel shoppers, Amazon DSP can help you achieve your growth goals.

To learn more about how to use Amazon DSP for your beauty business, please contact beBOLD Digital.

Amazon DSP ad types

There are four main ad types available to beauty brands through Amazon DSP: dynamic e-commerce ads, static ads, video ads, and over-the-top (OTT) video advertisements.

Dynamic eCommerce ads

Dynamic eCommerce ads are a type of ad that allows beauty brands to showcase their products more interactively. With dynamic eCommerce ads, beauty brands can include product images, pricing information, and even customer reviews. These types of ads are designed to help beauty brands increase conversion rates by providing potential customers with more information about the products they're interested in.

Static ads

Static ads are a type of ad that doesn't include any animation or interactivity. These ads are typically less expensive than dynamic e-commerce ads and can be an effective way to reach potential customers who are not yet ready

Video ads

Video ads are a type of ad that allows beauty brands to showcase their products in a more engaging way. Video advertisements can include product images, customer reviews, and even short videos. These types of ads are designed to help beauty brands increase conversion rates by providing potential customers with more information about the products they're interested in.

Over-The-Top (OTT) video ads

Over-The-TOP (OTT) video ads are a type of ad that allows beauty brands to reach potential customers on connected TV sources, like the Amazon Fire TV Stick. OTT, or streaming TV, refers to any type of streaming media content delivered over the Internet. It includes subscription-based streaming services where consumers can access content on-demand without having to go through a traditional satellite or cable provider. Viewers can watch OTT content across a range of devices such as mobile phones, gaming consoles, and tablets, but the majority of viewing occurs on connected TVs (CTV).

OTT video ads are non-skippable and full-screen, making them a great way to grab attention. However, keep in mind that these types of ads are not clickable, so they should be used as part of a broader marketing strategy.

When it comes to using the Amazon DSP effectively, there is no one-size-fits-all approach. Every beauty brand is different, and each will have its own unique goals and objectives. However, by following the tips above, you can be sure that you're using the Amazon DSP in the most effective way

beBOLD Amazon DSP Case Study

Tips for using the Amazon DSP effectively

First, it's important to set realistic goals for your Amazon DSP advertising campaigns.

  • What do you hope to achieve with your Amazon DSP campaigns?
  • Are you looking to increase brand awareness?
  • Drive traffic to your website?
  • Generate sales?

Once you've identified your goals, you can create a campaign that is designed to achieve those objectives. Additionally, be sure to track your progress and adjust

Here are some tips for using the Amazon DSP:

  • Make sure your ad creative is relevant and eye-catching. Remember, your ad will compete with other ads in the same space, so it's important to make sure yours stands out.
  • Use negative keywords to exclude people who are not in your target audience. This will help you focus your ad spend on the people who are most likely to convert.
  • Test different ad placements to see what works best for your brand. You can optimize your advertising inventory (the sites where ads show up) directly in the console. By adjusting your advertising audiences you can make sure you are only showing up where your target consumers are.
  • Keep an eye on your metrics and adjust your campaign accordingly. The Amazon DSP allows you to track a variety of metrics, from clicks through to your product detail page, to return on ad spend, so make sure you're monitoring the ones that are most important to your business goals.
  • Remember Amazon's programmatic advertising uses a CPM model, so watch those impressions!

By following these tips, you can ensure that your beauty brand is using the Amazon DSP effectively to reach more consumers. Remember, with the Amazon DSP advertising, beauty brands can target potential customers with laser precision, making it an essential tool for any brand looking to grow its business on Amazon.

Have you used the Amazon DSP? Share your experiences in the comments below!

Final thoughts

The bottom line is that Amazon DSP is a powerful tool that can help beauty brands reach their target audience and grow their business. Keep in mind the minimum ad spend requirements for Amazon's Demand Side Platform and consider partnering with beBOLD Digital to get the most out of your DSP campaigns.

Did you find this blog post helpful? Let us know in the comments below!

Looking for more beauty tips? Check out our blog for more great content like this! 

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Denny Smolinski

CEO & Founder - Denny’s experience and knowledge of the professional and prestige beauty industry and Amazon allows him and his team to grow beauty brands globally within the Amazon ecosystem. He understands the full scope of brands that are doing business in professional beauty or retail such as Ulta, Sephora, Nordstrom and more. Denny’s stands behind his professionalism and years of reputation in the beauty industry.

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