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How Non-Endemic Businesses Can Utilize Amazon DSP

Envision Horizons is expanding advertising offerings to allow non-endemic businesses to utilize Amazon’s DSP. This offering is well suited to businesses that do not sell on Amazon, but want to use Amazon’s advertising capabilities. This includes (but is not limited to) businesses in the travel, insurance, financial, and automotive industries. For non-endemic businesses (that do […]
Written By Tristan Williams
Published on July 29, 2022   |7 minute read

Envision Horizons is expanding advertising offerings to allow non-endemic businesses to utilize Amazon’s DSP. This offering is well suited to businesses that do not sell on Amazon, but want to use Amazon’s advertising capabilities. This includes (but is not limited to) businesses in the travel, insurance, financial, and automotive industries.

For non-endemic businesses (that do not sell products on Amazon) that are interested in using Amazon Ads to promote products or services, Amazon advertising offerings include display ads, video ads, and custom ads.

What is Amazon DSP?

Amazon DSP stands for “demand-side platform”, and it allows advertisers to programmatically buy ad space on Amazon.com and other Amazon-owned websites. Amazon DSP provides access to exclusive inventory, including first-party data, and offers unique targeting capabilities that allow advertisers to reach their desired audience. Advertising on Amazon DSP can help you increase brand awareness, drive traffic to your website, and generate sales.

Amazon DSP is unique in that it allows advertisers to expand their advertising reach beyond Ad Console and utilize both on-Amazon and offsite placements. This enables advertisers to drive traffic not only to their Amazon pages, but to their direct-to-consumer websites.

Pricing for ads through Amazon DSP varies depending on format and placement. Self-service customers are in full control of their campaigns, and there are no management fees. The managed-service option typically requires a minimum spend of USD $50,000 (minimum may vary per country).

Amazon DSP for Non-Endemic Businesses

One of the key differences between Amazon DSP and Sponsored Display is that DSP can be used for brands that do not sell directly on Amazon, while Sponsored Display ads are only available on Amazon.

Benefits for Amazon 

Amazon has been doing an increasing amount of work with non-endemic advertisers. In fact, Amazon DSP hired an ad sales team specifically for non-endemic brands. Non-endemic businesses are an extremely small percentage of Amazon’s total ad revenue currently, however it could grow into a very lucrative revenue stream down the line.

What is Non-Endemic Advertising?

Endemic advertising is an advertising and marketing term that refers to ad placement that’s natural to a market, sometimes referred to as “Vertical Advertising”. The ads in endemic advertising contextually belong to the markets and sites they’re placed on. For example, a cosmetics company that sells lipstick on Amazon uses Amazon advertising to drive traffic to their listing is participating in endemic advertising.

In contrast, non-endemic advertising entails advertising on a platform where your product is not actually sold, meaning it does not “naturally” belong to the market/ site they’re placed on. For example, an insurance company cannot have insurance plans listed for sale on Amazon’s platform, but they can place ads on Amazon’ platform targeted towards consumers that they have identified as being “in the market” for insurance offerings. 

How to Utilize Amazon DSP for Non-Endemic Businesses

A growing number of companies that do not sell products on Amazon or even have e-commerce businesses, are utilizing Amazon DSP. These advertisers want to utilize Amazon shopping data to target customers across the web. For example, an automotive company cannot list cars for sale directly on Amazon’s platform, however, they can use Amazon’s shopping data to identify consumers that are likely in the market for buying a car, and target them through advertisements. To find people in-market for a car, the automobile company would look at Amazon’s audience segments based on purchase data for products that often precede buying a car.

Why Use Amazon DSP for Non-Endemic Advertising?

  • Utilize relevant amazon shopping data and custom targeting segments to identify consumers within your target audience.
  • By utilizing Amazon’s data and the platform’s reach, you can access specific target audiences with high purchase intent.
  • With rising Facebook advertising costs, Amazon is a new incremental option for better ROI on ad spend.
  • Amazon DSP utilizes a non-disruptive advertising style, preferred by many consumers.

Use Cases: Amazon DSP for Non-Endemic Businesses

How Travel Companies Can Use Amazon DSP

A hotel brand cannot list rooms for sale directly on Amazon’s platform. However, they can use Amazon’s shopping data to identify consumers that are likely in the market for booking a hotel room, and target them through advertisements. To find people in-market for a hotel room, the company would look at Amazon’s audience segments based on purchase data for products that often precede hotel room bookings. For example, a hotel brand can target Amazon audiences based on searches for terms such as “travel toiletry kits.”

How Insurance Companies Can Use Amazon DSP

An insurance company cannot list insurance plans for sale directly on Amazon’s platform. However, they can use Amazon’s shopping data to identify consumers that are likely in the market for insurance, and target them through advertisements. To find people in-market for new insurance plans, the company would look at Amazon’s audience segments based on purchase data for products that often precedes purchasing a new insurance plan, such as stage of life. For example, an insurance company can identify consumers with qualifying life events, such as having a baby, by targeting Amazon audiences that have past purchases for baby products. 

How Financial Companies Can Use Amazon DSP

A financial company cannot list their services for sale directly on Amazon’s platform, however, they can use Amazon’s shopping data to identify consumers that are likely in the market for their services and target them through advertisements. For example, a financial company could look at Amazon’s audience segments to identify consumers who are in the market for a new home, and advertise their financial services to them. 

How Automotive Companies Can Use Amazon DSP

An automotive company cannot list cars for sale directly on Amazon’s platform, however, they can use Amazon’s shopping data to identify consumers that are likely in the market for buying a car, and target them through advertisements. To find people in-market for a car, the automobile company would look at Amazon’s audience segments based on purchase data for products that often precede buying a car.

Amazon Shopping Data
Amazon Shopping Data
Amazon Shopping Data

Accessing Envision Horizons’ Agency DSP Seat

Amazon DSP is a very powerful tool with limited access compared to Amazon’s other advertising solutions. As Amazon’s DSP is not widely accessible, non-endemic advertisers will need to partner either directly with Amazon or with an Amazon agency (such as Envision Horizons) with access to DSP. 

Access to the Amazon DSP is limited to select agencies. With Envision Horizons agency access, we are able to offer the opportunity for non-endemic businesses to utilize Amazon DSP. The minimum spend required for Envision Horizons to manage advertising through DSP is $10,000 USD. If you are interested in learning more, please contact the Envision Horizons team through our website here.

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