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.
Frequently Asked Questions (FAQs)
What is Amazon DSP?
Amazon DSP is a demand-side platform that allows advertisers to programmatically buy display, video, and audio ads on and off Amazon’s ecosystem.
What does it mean that Amazon DSP has expanded its video ad inventory?
It means advertisers can now reach more audiences via video ads across Amazon properties (like IMDb, Fire TV, Twitch) and third-party websites and apps.
Which platforms are included in Amazon’s expanded video inventory?
Platforms include IMDb, Fire TV, Twitch, Freevee, and third-party publishers via Amazon Publisher Services (APS).
Why is Amazon expanding its video ad inventory?
To help advertisers achieve broader reach, improved targeting, and better video engagement across multiple devices and consumer touchpoints.
What types of video ads are supported in Amazon DSP?
Supported formats include in-stream video ads, out-stream video, OTT/CTV ads, and native video placements.
Can I run video ads on non-Amazon platforms through Amazon DSP?
Yes, advertisers can target audiences on third-party apps and websites integrated with Amazon Publisher Services and third-party exchanges.
How does Amazon DSP targeting work for video ads?
It uses Amazon’s first-party shopping and behavioral data to deliver highly targeted video ads based on customer interests, demographics, and purchase intent.
What are OTT and CTV ads in the context of Amazon DSP?
OTT (Over-the-top) and CTV (Connected TV) ads are non-skippable video ads shown on internet-connected TV devices via services like Fire TV and IMDb TV.
Is Amazon DSP suitable for brands not selling on Amazon?
Yes. Even non-endemic brands (those not selling on Amazon) can use Amazon DSP to reach audiences based on shopping and behavioral signals.
Can I measure video ad performance on Amazon DSP?
Yes. Amazon provides detailed performance reports, including video completion rates, viewability, brand lift, and conversions.
What is the minimum budget required to run video ads on Amazon DSP?
Typically, self-service DSP has a higher entry threshold (e.g., $35K+), but managed service options and agency partnerships can offer flexibility.
Are Amazon video ads skippable or non-skippable?
Both formats exist. CTV ads are generally non-skippable, while mobile and web video ads may be skippable based on placement.
How do I access Amazon DSP for video advertising?
You can access it either through Amazon’s self-service DSP platform or by working with an Amazon Ads account executive or certified agency.
How does Amazon’s first-party data improve video ad targeting?
It leverages rich behavioral data from browsing, purchase history, and streaming habits to serve highly relevant video ads.
What are the benefits of using Amazon DSP over other video ad platforms?
Amazon offers unique access to high-intent shoppers, premium OTT inventory, first-party data, and closed-loop measurement capabilities.
Can I retarget viewers who engaged with my video ads on Amazon DSP?
Yes, Amazon DSP supports retargeting strategies, allowing you to re-engage users who viewed or clicked on your video ads.
Does Amazon DSP support audience lookalike targeting for video ads?
Yes. You can create lookalike audiences based on existing customers or engaged viewers to expand reach effectively.
Is brand safety ensured in Amazon’s video inventory?
Yes. Amazon uses strict brand safety protocols, viewability standards, and third-party verification tools for safe ad placements.
What KPIs should I track for Amazon video ads?
Important KPIs include video completion rate, cost per completed view (CPCV), click-through rate (CTR), and new-to-brand conversions.
What industries benefit most from Amazon DSP video expansion?
E-commerce, automotive, finance, travel, entertainment, and CPG brands benefit significantly due to Amazon’s cross-device reach and targeting precision.
