Amazon’s Demand-Side Platform (DSP) has taken a significant leap by expanding its video ad inventory across several key platforms. With the inclusion of Fire TV, Echo Show, IMDb, and Twitch, advertisers now have more opportunities to engage audiences in innovative ways. The new features will automatically roll out starting November 1, 2023, offering streamlined ad management, improved reach, and enhanced targeting through machine learning.
In this blog, we will dive into the major elements of this expansion and explore the benefits, targeting capabilities, and how different types of video ads perform across these platforms.
What is Amazon DSP?
Amazon DSP is a demand-side platform that allows advertisers to buy display, video, and audio ads programmatically. Through Amazon’s extensive first-party data, advertisers gain the ability to target highly relevant audiences both on Amazon platforms and external websites.
Overview of the Expansion
Starting November 1, 2023, Amazon DSP’s video ad inventory will extend across Echo Show, Fire TV, IMDb, and Twitch. The update automatically includes eligible ads, making it easier for advertisers to manage campaigns across multiple platforms.
Platforms Now Included in Amazon DSP
The newly expanded inventory covers:
- Fire TV: Reaching audiences streaming content.
- Echo Show: Video ads displayed on voice-activated screens.
- IMDb: Engaging movie buffs with in-stream video ads.
- Twitch: Capturing the attention of gamers and live stream enthusiasts.
Automatic Inclusion of Ads
From November 1, 2023, eligible ads will be automatically included in the expanded inventory. This feature ensures that advertisers can reach a wider audience with minimal manual effort.
Opt-Out Options for Advertisers
While automatic inclusion simplifies ad management, advertisers retain full control. If a brand prefers not to participate, they can easily opt-out of specific platforms or inventory placements through the campaign settings.
AI-Driven Optimization
Amazon DSP introduces advanced machine learning capabilities to improve targeting accuracy. With AI-driven optimization, the platform identifies patterns to serve ads to the most relevant audience segments, enhancing engagement and conversion rates.
Benefits of the Expansion
The expanded inventory and AI improvements provide several key benefits:
- Simplified Management: Automated inclusion reduces the need for manual placements.
- Broader Reach: Advertisers gain access to larger and more diverse audiences.
- Increased Efficiency: AI-driven optimization improves campaign performance.
- Better ROI: By targeting relevant audiences, ads achieve higher engagement and conversions.
Access to Unique Ad Inventory
Amazon’s DSP offers exclusive ad placements across Amazon-owned platforms and third-party exchanges. This unique access allows advertisers to connect with consumers both within Amazon’s ecosystem and beyond.
Advanced Audience Targeting
Amazon DSP leverages first-party shopping data, enabling advertisers to target audiences based on demographics, purchase history, and browsing behavior. This ensures higher relevance and engagement with ads.
Increased Brand Safety
Amazon DSP uses robust brand safety measures to monitor where ads appear. This ensures that ads are displayed in appropriate environments, protecting the brand’s image and maintaining consumer trust.
Types of Video Ads on Amazon DSP
- Sponsored Brands Video Ads:
- Appear on product detail pages and search results.
- Help tell brand stories and increase visibility.
- Streaming TV Ads (OTT):
- Shown during Fire TV streaming sessions.
- Effective for brand awareness and new customer acquisition.
- Online Video Ads (OLV):
- Appear before, during, or after online videos.
- Drive clicks and immediate conversions.
- Sponsored Display Video Ads:
- Shown on Amazon’s homepage and product pages.
- Engage users at various stages of their buying journey.
- Templated Video Ads:
- Created using pre-designed templates.
- Enable quick production of professional-looking ads.
Comparison: OTT Ads vs. OLV Ads
| Metric | OTT Ads | OLV Ads |
|---|---|---|
| Ad Format | Non-skippable, immersive | Clickable, skippable |
| Primary Goal | Brand awareness | Immediate conversions |
| Completion Rate | High | Variable |
| New-to-Brand Customers | 57% influenced | Less focus on new users |
| Ideal Length | Not applicable | ~10 seconds |
Best Practices for Running OTT Ads
- Short Ad Lengths: 15-30 seconds ads perform better.
- High-Quality Visuals: Capture attention with compelling imagery.
- Mid-Roll Placement: Ads during content tend to have higher completion rates.
Impact of Hyper-Local Targeting
Advertisers can leverage geo-fencing and IP-based targeting to serve ads to audiences in specific locations. This precise targeting strategy increases the relevance of the message and maximizes engagement.
Real-Time Bidding and Programmatic Auctions
Amazon DSP employs real-time bidding (RTB) to optimize ad placements dynamically. This feature ensures that ads are served to the right audiences at optimal moments, enhancing campaign performance.
Creative Quality and A/B Testing
- A/B Testing: Run multiple variations of ads to identify the best performers.
- Creative Alignment: Ensure ads align with brand messaging and identity.
- Continuous Optimization: Monitor and refine creatives based on performance metrics.
How Advertisers Can Maximize ROI
- Use AI-Optimized Campaigns: Let machine learning algorithms refine audience targeting.
- Leverage Multiple Platforms: Take advantage of Echo Show, Fire TV, and Twitch placements.
- Monitor Performance Metrics: Track key metrics like impressions, click-through rates, and conversions.
Conclusion
Amazon’s DSP expansion across Fire TV, IMDb, Twitch, and Echo Show marks a new era of video advertising. With AI-driven optimization, real-time bidding, and precise audience targeting, the platform offers unparalleled reach and performance. The simplified management, combined with diverse ad formats, makes Amazon DSP a powerful tool for advertisers seeking to engage audiences across multiple platforms.
Whether your goal is brand awareness or direct conversions, Amazon DSP offers the tools and inventory to achieve impressive results. As the November 1 rollout approaches, advertisers should explore the platform’s new features to stay ahead of the competition.
