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Amazon offers many advertising options for brands, including Sponsored Display ads and DSP ads. These ad types allow brands selling on Amazon to increase their visibility and stay ahead of their competition. In this blog post, we’ll present a comparison of Amazon Sponsored Display vs DSP ads.

If you are new to Amazon advertising, it is essential to understand the similarities and differences between Amazon Sponsored Display ads and DSP. Knowing how the two ad solutions work will help you pick the right option for your business when optimizing your advertising strategy.

Figure 1 Image Source: https://advertising.amazon.com/

Amazon Sponsored Display vs. DSP

Amazon Sponsored Display ads help brands target buyers who search for their products using relevant keywords, shoppers who view similar products, and customers who have previously purchased from them. These ads appear both on and off Amazon.

Similarly, just like Sponsored Display, Amazon DSP is an advertising platform where brands can programmatically buy ads on and off Amazon.com and attract new customers. However, the latter gives you additional audience targeting options, which expand to both desktop and mobile. In comparison, Sponsored Display ads only target visitors on mobile. 

Note: In the future, Amazon plans to expand Sponsored Display ads to support desktop and laptop devices in addition to smartphones.

Besides this, Amazon Sponsored Display ads and DSP ads differ in eligibility, minimum investment, cost structure, and other aspects.

Read on to learn the fundamentals of both advertising options.

Figure 2 Image Source: https://advertising.amazon.com/solutions/products/amazon-dsp

What Are Amazon Sponsored Display Ads?

Amazon Sponsored Display ads are PPC ads that allow brands to reach their audience using remarketing, product targeting, and shopper insights.

Therefore, this ad type lets brands advertise to customers who purchase items from their catalog. Additionally, Amazon businesses can show these ads to people who view their products, click on similar items, or search for products using relevant keywords.

The Amazon Sponsored Display ads are served through the Amazon Advertising Console and only facilitate conversions inside the Amazon ecosystem.

Where can you find Amazon Sponsored Display Ads? Amazon Sponsored Display Ads appear on product detail pages, customer review pages, search results pages, and within the Amazon app. 

Below is an example of a Sponsored Display Ad on Amazon.

Figure 3 Image Source: https://www.amazon.com/Hammocks-Rada-Hammock-DELUXE-Natural/dp/B076FF3RLC

So, why are Amazon Sponsored Display ads so powerful? This ad category can uniquely boost your brand's visibility and put you ahead of your competitors if leveraged the right way.

Figure 4 https://advertising.amazon.com/solutions/products/sponsored-display

What Are DSP Ads?

Amazon DSP ads target audiences both on and off Amazon through Amazon's demand-side platform.

DSP ads are purchased programmatically across many platforms, including Amazon, social media sites, third-party websites, mobile apps, and online video channels.

Figure 5 Image Source: https://www.amazon.com/Rufus-Teague-Honey-Sweet-Sauce/dp/B001H3TVCC

The main types of DSP ads include display ads, video ads, audio ads, over-the-top video ads, and dynamic e-commerce ads.

The Amazon DSP program offers two options for sellers: Managed self-service and Amazon managed.

What's The Difference?

Managed self-service provides advertisers with more control over their campaigns. In contrast, the Amazon-managed option lets advertisers receive consultations from Amazon's in-house campaign management team.

DSP ads reach exclusive audiences, appear in the best ad spaces, and give advertisers the best audience insights, powered with comprehensive performance reports.

What Are The Differences Between Amazon Sponsored Display Ads and DSP Ads?

Let's look at Amazon Sponsored Display vs DSP in greater detail to help you make a better choice.

Amazon Sponsored Display vs DSP: 7 Things Brands Should Know

If you're planning to get started with paid media to give your Amazon business a nice booster in visibility and sales, it's in your best interest to understand the differences between Sponsored Display ads and Amazon DSP. 

Here are the things to know regarding Amazon Sponsored Display vs DSP: 

Difference #1: Not Every Brand Is Eligible

Amazon Sponsored Display Ads are only available to brand-registered sellers

Meanwhile, advertisers can use DSP ads regardless of if they sell on Amazon or not. Following is a snapshot of the sponsored solutions that Amazon provides to sellers and brands:

Figure 6 https://advertising.amazon.com/lp/build-your-business-with-amazon-advertising

Difference #2: The Cost Structure Varies

Amazon Sponsored Display Ads use a pricing model known as Pay Per Click (PPC), while DSP ads use Cost Per Mille (CPM). 

Pay Per Click is a model whereby an advertiser pays a specific amount when a shopper clicks on their ad. In contrast, Cost Per Mille refers to the cost of one thousand ad impressions.

Which one is best for your brand? That depends on your advertising goals. PPC typically is best for generating sales, while CPM-based solutions are great for building brand name recognition.

Difference #3: Each Ad Type Has Differing Minimum Investments

The minimum advertising budget for sponsored display ads is $1. In contrast, the minimum ad spend for DSP ads is $35,000. 

The advantage of sponsored display ads in terms of minimum investment is that it’s easy for brands to get started and increase their ad spend over time. The low barrier to entry allows brands with a limited advertising budget to leverage sponsored display ads to reach audiences. 

Even though the minimum investment for DSP ads is relatively high, this program comes with more advanced capabilities. 

Difference #4: Traffic Generation

Figure 7 https://advertising.amazon.com/solutions/objectives/brand-advertising

While Sponsored Display Ads can appear both on Amazon and outside the marketplace, the traffic these ads generate leads back to Amazon listings only. You can’t send traffic to an external website using Sponsored Display ads.

On the other hand, DSP ads can send traffic to both Amazon listings and external websites. This aspect makes DSP a viable advertising option for brands that don’t sell directly on Amazon or maintain an omnichannel sales strategy.

Difference #5: Control Over Creatives

Amazon DSP Ads allow advertisers to customize headlines, brand logos, images, and other creatives. That means you can customize your visual elements to your liking and increase buyer's attention. 

Sponsored Display Ads do not offer customization. Instead, they generate ads automatically using your Amazon product information. 

Difference #6: Audience Stacking

Amazon DSP allows advertisers to filter their audience to target specific audiences. In contrast, Sponsored Display Ads do not allow brands to refine their audience. As a result, advertisers using display ads can only target a broad audience.

For a brand looking to show ads to a specific audience, DSP ads can be a better choice.

Difference #7: Learning Curve

Sponsored Display Ads are easy to launch and manage through Seller Central, so brands do not necessarily need the help of Amazon advertising agencies. On the other hand, DSP advertising is complicated, more so for new advertisers. Therefore, it may be necessary for brands to seek help from trusted Amazon advertising agencies.

Does Your Brand Need An Amazon DSP Agency?

Whether you’re new to Amazon DSP advertising or an experienced advertiser, it is in your best interest to work with a professional Amazon DSP agency. After all, professional marketing agencies know how to build winning PPC campaigns for your business.

Amazon DSP advertising needs to be handled by professionals with extensive knowledge and technical experience in advertising. If you approach Amazon DSP advertising with trial and error, you may end up wasting your ad spend and may never get the results you want.

Why You Should Work With A Reputable Amazon PPC Management Company?

An Amazon PPC management company will help you design the most profitable PPC campaigns and guide you on optimizing your advertising budget. They will also handle every aspect of your PPC campaigns so you can get the most of your ad spend.

Need Amazon Sponsored Display & DSP Ad Management Services? Here's How We Can Help!

If you're looking to get started with Amazon Sponsored Display Ads and DSP ads, let our PPC experts at Sunken Stone help you get the results you want. You can trust our PPC management team to run the best Amazon PPC campaigns that will take your brand to the next level. 

Our PPC management team will leverage strategies to run effective ad campaigns. We'll also provide your brand with insightful reports to help your company make the right advertising decisions. Discover more about Amazon PPC Management Services from Sunken Stone.

Frequently Asked Questions

  • Are Sponsored Products On Amazon Better?

Sponsored products on Amazon can help brands make more sales and increase brand awareness. However, brands need to launch profitable campaigns to achieve the desired results. Therefore, it's always a good idea to test Sponsored Product ads for your business.

  • What Is The Difference Between AMS And DSP?

AMS (Amazon Marketing Services), also known as Amazon Advertising Console, is an advertising platform that offers a set of tools and services. These tools and services enable Amazon sellers to get their products in front of the relevant audience. 

Alternatively, Amazon DSP is an advertising platform that showcases brand ads online. Furthermore, brands can show ads on and off of Amazon.com.

  • Is DSP Part Of Amazon?

DSP is one of the advertising solutions that Amazon offers its customers. However, unlike Amazon Sponsored Display advertising solutions, brands don’t need to sell on the eCommerce marketplace to create DSP ads. Therefore, it is a great advertising opportunity for brands that have yet to add their catalog to Amazon.

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