Answer these 13 questions before starting Amazon DSP
Launching and running Amazon DSP campaigns is a strategic move that should align with your brand's growth objectives. It's crucial not to rush into DSP for the wrong reasons. Here are five key considerations to help you determine if you're prepared to embark on Amazon DSP:
Sponsored Spend Scaling: Have you substantially scaled your sponsored spend across all ad types, including sponsored products, sponsored brands, and sponsored display? If not, it's advisable to focus on this first, as it often yields a more favorable return on investment.
Sponsored Display Performance: Are you already investing a substantial budget in Sponsored Display with average or better performance? Amazon DSP can be considered as an amplified version of Sponsored Display. Prioritize mastery of Sponsored Display and understanding what strategies work effectively.
Market Share and New Customers: Is your goal to expand your market share and attract new-to-brand customers? Amazon DSP excels at this and should primarily be utilized for top and middle-of-funnel advertising, not just bottom-of-funnel conversions.
High-Impact Products: Do you have a core set of top-selling products that could benefit from increased traffic and visibility? If so, Amazon DSP can significantly boost these products. However, if you lack such high-impact products, consider delaying DSP implementation, as it might not perform optimally for average-rated or less-competitive items.
Inventory Readiness: Ensure your inventory management is in excellent shape. DSP campaigns can drive substantial traffic, so you need to be prepared to fulfill increased demand without running out of stock.
What you're missing in this evaluation:
Ad Creative and Messaging: Your ad creative plays a pivotal role in the success of DSP campaigns. Ensure you have compelling, engaging ad content that aligns with your brand and resonates with your target audience.
Attribution Models: Have a clear understanding of how you'll attribute success in your DSP campaigns. Establish the right attribution models to accurately measure ROI and campaign performance.
Budget Allocation: Amazon DSP can be budget-intensive. Make sure you've allocated a sufficient budget for your campaigns and are prepared for potential bidding competition.
Long-term Strategy: Consider how Amazon DSP fits into your overarching marketing and advertising strategy. It should be integrated as a long-term component rather than a short-lived initiative.
Data Utilization: Harness the power of data and analytics for precise targeting and optimization. Ensure you have the capability to collect, analyze, and leverage data effectively.
Testing and Optimization: Be ready for ongoing testing and optimization of your DSP campaigns. Continuous refinement is key to achieving the best results.
Regulations and Compliance: Familiarize yourself with Amazon's advertising policies and any applicable regulations in your target markets to avoid disruptions in your campaigns.
Expertise and Guidance: If you encounter uncertainty at any stage, consider seeking guidance from Amazon marketing experts or agencies experienced in running successful DSP campaigns. Their insights can prove invaluable.
Amazon DSP is a potent advertising tool, but a well-informed and holistic approach is essential to maximize its potential impact on your brand’s success.
