Surely you have heard of Amazon DSP , but is it worth investing in this advertising platform? It is normal for questions about how much it costs and if what you get for what you pay makes sense. Therefore, we are going to break down the answer so you can decide if it is the right option for you.
Index
Minimum Amazon DSP cost
Amazon DSP (Demand-Side Platform) is an advertising platform that allows advertisers to buy programmatic display , video and audio ads, both inside Amazon and in other associated sites.
It is like having access to a lot of online advertising spaces, but with the advantage of being able to control and customize everything from the same tool.
But, of course, the question is: how much does Amazon DSP really cost? This depends on your experience level and what you seek to achieve with the platform.
If you are new in the world of programmatic advertising or you prefer to have a bit of help throughout the process, you can opt for the managed service , in which Amazon offers you direct assistance, guiding you in the configuration and optimization of your campaigns.
This is a way to make sure everything is well managed. Of course, to access this service, you need to be willing to make a minimum investment of around 50,000 USD . Although this amount may vary depending on the country, in general it is the minimum required.
On the other hand, if you have experience managing advertising campaigns and you want to have total control of what you are doing, then the best thing for you is the self -service . In this there is no minimal investment established , so you can start with what you consider necessary.
However, keep in mind that, although you do not need a high initial budget, it is essential to know about programmatic advertising so that your campaigns are effective.
As you can see, the cost of Amazon DSP varies depending on how much control you want and how much help you need.
🧠 Azzgency Pro Tip : Before paying for the Amazon DSP managed service, take a concept test with Sponsored Display and Sponsored Video campaigns. If you get good roas with those audiences, it is a clear sign that DSP is worth climbing.
Factors that influence the final cost of Amazon DSP
Why varies the final cost of Amazon DSP? There are certain reasons that explain this:
The more precise segmentation . For example, if you want to point to a super specific audience, such as people who have bought products similar to yours, the cost rises. The advantage is that, being so precise, the chances of success are much greater.
Frequently
show the ads more frequently, it can be what leads the user to click on it. The drawback is that the more times you show them, the more expensive it can be , although there are studies that indicate that repetition increases conversions. So, if you are willing to invest in this, it may be worth it.
Type of ad
Not all ads are the same. For example, video ads are more expensive than display, but have more impact . Therefore, if you have the budget and want to highlight, a video will help you get more attention, but if you are starting, the display ads can be a more affordable option.
Comparison with the costs of other types of advertising
In the world of digital advertising there are many options. Thinking about that, let's compare Amazon DSP with other popular platforms.
Sponsored ADS on Amazon
if you are selling on Amazon, you have probably considered or used Sponsored ADS that is a more affordable option and focuses directly on increasing sales of your products .
You don't need a large budget, and you can start with little. However, segmentation is more limited compared to DSP. Even so, if your goal is simply to move products, Sponsored ADS is probably what you are looking for.
Google Ads
Google Ads gives you access to a giant network of websites, but competition is also very large. And as the system is based on keywords, some sectors may have high costs .
While Google gives you access to a broader audience, you are probable that you do not have the same accuracy of segmentation that Amazon DSP offers you, especially if what you are looking for is to take advantage of Amazon data.
How to evaluate investment return in DSP campaigns?
Everyone who invests at Amazon DSP should ask the question: am I getting more than I am investing? To find the answer, you must do the following:
- Define your goal : Before spending a penny, you have to define what you want to achieve. Are you looking for more sales? Brand visibility? Increase awareness about a new product? Having your goals clear will help you measure if the investment is paying fruit.
- Analyze the key metrics : to know if you are obtaining a positive return, check metrics such as acquisition cost (CPA) and the return on advertising investment (Roas) . If those figures are aligned with your expectations, then you are on the right path.
- Adjust on the march : Sometimes it is necessary to make real -time adjustments. Maybe your audience segment is not functioning as you expected, or you may need to optimize the content of the ad. In any case, Amazon DSP allows you to modify the campaigns while they are active.
When is the right time to use Amazon DSP?
With what we have mentioned before, you are likely to start using the platform. But is Amazon DSP the best option for you?
- Available budget : If you do not have a budget of at least 50,000 USD, Amazon DSP may not be the best platform to start. So, if you are a small company with limited resources, you may prefer to first consider other alternatives.
- The size of your company: if your company is large or in a growth phase, and you have the ability to invest in large -scale advertising, Amazon DSP will allow you to take advantage of detailed data and advanced segmentations to maximize your scope. On the other hand, if you are a startup or a small business, other platforms may be, such as Sponsored ADS, be more appropriate at the beginning.
- Objectives : Amazon DSP is very good for brands that want to invest in the long term and grow strategically. If what you are looking for is a quick campaign and immediate impact, there are other options that can be more effective.
Is it worth investing in Amazon DSP?
Amazon DSP has a cost that, although it is quite high, can be a great investment if you know how to take advantage of its advantages.
If you have an adequate budget, a specific audience that you want to reach, and clear objectives, then, Amazon DSP can be an excellent option. But if you are starting or your resources are limited, you may want to start with something more accessible and then climb.
What is more important is to know what you need, how much you are willing to invest and how you will measure the return on investment.
