Hidden Tricks to Maximize Efficiency on Amazon DSP

Alexis Anderson

March 11, 2021

When most people decide to dive into Amazon DSP, they are immediately overwhelmed. While many common advertising platforms have a similar setup, Amazon DSP has a different format and different terminology. But, once you learn the ways of DSP, my bet is that it will become one of your favorite ad types to work with.

The first step to maximizing efficiency on DSP is knowing what you are working with. It is pertinent to understand DSP campaign creation, optimization, and reporting. My first encounter with DSP was blind, and it took a lot of time and research to figure things out. I eventually got the hang of it, but never felt confident to expand my strategies on DSP. About a year later, I came across a treasure trove of knowledge.

Let me save you some time and brain power. This DSP Help Center is like the bible of DSP. I strongly encourage you to watch the videos and review the best practices. Those will give you the headstart I dreamt of having. Unfortunately, you will need to have an Amazon Advertising account to view this, but if you are trying to maximize your Amazon DSP, I am assuming you have one.

Once you have dug into this site a bit, you will be ready to move on to the fun part.

Tips & Tricks for your DSP Strategy

Here are 14 tips and tricks to make your DSP experience smoother:

Creatives

Take advantage of the creative opportunities you can use on DSP. Making your ads engaging is the first step to running an efficient and effective campaign. You could have the best placement and the perfect audience, but if your ad falls flat you won’t pull in new customers. Amazon recommends trying the following options to increase clickthrough rates and conversions:

  • **Use Brand Logos & Headlines **- Make sure your ads are recognizable as your brand so consumers know exactly who and what they are getting.
  • **Include Customer Reviews & Ratings **- Sharing positive feedback from other consumers helps build authority and trustworthiness for your brand.
  • **Use Responsive E-Commerce Ads **- This is a new creative type that allows you to advertise multiple ASINs in a single creative. It automatically builds out all of the sizes for each ASIN, saving you a lot of time and energy.
  • **Consider Using Video Content **- The video requirements for DSP are the same as Sponsored Brand Video. This is a big win because you now have another place to utilize your video creative and reach the exact audience you are aiming for.

Audiences

This is where strategy really comes into play. Choosing the right audiences for your campaign is the key to success. Here are some things I learned quickly about this.

  • Audience Insights -** Audience insights are available when looking on the audience section of the platform. They can help you gauge the relevancy of and audience for your brand and determine the kind of reach you can achieve. This is a no brainer when it comes to planning an effective strategy. Is an audience too broad or too niche? Amazon Insights can help you make that decision.
  • **ASIN Retargeting **- You can build custom audiences for your ASINs that target past page views, searches, similar searches and purchases.
  • **Use the Look Back Window Effectively **- You can retarget up to 365 days back. But you should choose what makes sense for your product. Is it a supplement? Retargeting 90 days back would be more effective to remind the customer to buy again as their stock starts to run low.
  • **Use Exclusions **- You can exclude specific audiences that you don’t want to target. An example of this would be a customer that purchased a 30 day supply of supplements. You can exclude past purchases in the last 30 days to make sure you aren’t just annoying your customers and wasting spend showing an ad that is unlikely to bring in more business. Once a customer falls out of the 30 day window (or the window you have set), they will automatically be reincluded in audience targeting.
  • **Overlap Reports **- Use overlap reports to take a specific audience you are already using successfully, search it, and receive 30 audiences that fall into the same consumer profiles. This can be a really useful tool for fine tuning a campaign. Plus, targeting a more specific audience set will help increase efficiency in ad spend. Overlap reports allow you to spend more on the customers you actually want to reach.

Optimizations

  • **Amazon Recommendations **- Similar to google ads recommendations, Amazon will provide you with recommendations to optimize campaigns. I would recommend trying them to see how it affects campaign performance. I opted to let Amazon do “Automatic Budget Optimizations” as a test for one of my brands and saw a lift in impressions, clicks, and sales within the first week.
  • **Shift Budgets **- Shift budgets to the line items that are performing better. I always have 2 line items per campaign, Standard Display (Desktop) and Mobile. If I see one is clearly performing better than the other, I will reallocate budget on a line item level.
  • **Frequency Cap **- Consider adjusting Frequency Cap. If impressions are low, you can increase the frequency the ads are served. Typically for a retargeting campaign I set my cap at 6 times a day. But when I am trying to get lift on a campaign launch, I will increase it to 8 and then lower it once I see the campaign has gained some momentum.
  • **Website Exclusions **- Make sure you start your campaigns off right and exclude websites you already know you don’t want to target. You can also run a performance report and review the sites & supply tab. From there you can look at sites that you see low performance on and add it to the exclusion list. This is essentially like adding negative keywords to your campaigns.
  • **Don’t Over do it **- Once you have made a change you should give the campaign at least 7-10 days to monitor performance. I usually wait 2 - 3 weeks. You want to give Amazon’s Algorithm time to learn from your changes so you can see if they made a real difference. As you begin to play with DSP more, you will find your own cadence for optimizing existing campaigns.

And that’s a wrap!

Not really though, because this platform is constantly evolving. It is vital to stay informed on what updates and changes are coming and how to use them to your advantage. For that reason, I regularly check the DSP Help Center for updates and new articles and I think you should, too.

My final recommendation for building an efficient money-making machine is to plan every detail of your campaign strategy before you build it. Then look it over, does it make sense? Amazon has provided some really useful best practices for all aspects of DSP, so make sure your campaign settings align with those and the goals of your campaign. Optimizing your ads will be much more successful if you are starting with a strong foundation.

Good luck on your DSP endeavors!

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Sept 6, 2022

Global Ecommerce Weekly News: 6th September 2022

Get up to date with this week's ecommerce headlines from around the globe. --- Amazon News --- Amazon announces new inventory and distribution service, AWD Amazon has launched Amazon Warehousing and Distribution (AWD), providing inventory and distribution services to its sellers as a means of addressing current supply chain issues. AWD is now available for sellers using Fulfilment by Amazon (FBA), i.e. outsourcing their fulfilment to the platform. Amazon has plans to expand the service outside the platform in 2023. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/02/amazon-introduces-new-service-to-help-solve-supply-chain-challenges/) Amazon Web Services (AWS) launches in the UAE AWS, Amazon’s cloud-computing platform offering, has launched its second region in the Middle East and now provides its services in the UAE. The move will now allow anyone in the UAE who utilises cloud technologies to harness AWS’s advanced platforms and APIs. An estimated $11 billion USD is expected to be added to the UAE’s GDP thanks to the implementation, with an average of 6,000 external vendor jobs to be created annually. AWS is now available in 87 zones across 27 regions, with sights set on expanding further across Australia, Canada, India, Israel, New Zealand, Spain, and Switzerland. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/08/30/amazon-web-services-launches-region-in-uae/) --- Other Marketplace News --- Lazada to launch in Europe Alibaba-owned ecommerce platform Lazada is set to launch in Europe, marking a refreshed internationalisation push from the company. The move follows toughening economic conditions and performance in Southeast Asia, advancing the need to tap overseas markets. In Europe, Lazada will face tough competition from giants like Amazon and Zalando. Lazada’s exact entry strategy is to be confirmed and will be reliant on macroeconomic and market conditions, according to Lazada CEO James Dong. [Read more on DigitalCommerce360](https://www.digitalcommerce360.com/2022/09/01/alibabas-lazada-to-take-on-amazon-zalando-in-europe-push/) Chinese ecommerce giant Pinduoduo to launch cross-border platform in the United States Pinduoduo, a Chinese ecommerce giant rivalling Alibaba and JD, has announced it will be launching a new cross-border ecommerce platform. The marketplace is set to launch in the United States next month, as part of the company’s larger push into new markets. Pinduoduo found success in China thanks to its rock-bottom price offerings and harnessing of social commerce marketing, emulating strategies similar to fast-fashion giant Shein. [Read more on Yahoo Finance](https://uk.finance.yahoo.com/news/pinduoduo-launch-international-e-commerce-034129263.html) Alibaba launches its biggest B2B sales event, ‘Super September’ China ecommerce giant, Alibaba, has now launched its month-long B2B sales event ‘Super September’. The event provides 40 million buyers and 200,000 suppliers with the ability to connect on the platform, showcasing a ‘virtually unlimited’ number of products. The event hopes to foster new cross-border business relationships to tackle supply chain challenges currently faced by businesses. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/01/alibaba-launches-super-september-b2b-sales-event/) --- Other Ecommerce News --- Klarna’s losses quadruple in first half of 2022 BNPL provider, Klarna, has reported losses of $581 million USD for the first half of 2022. This figure is almost four times larger than a year earlier, where $129 million USD in losses were reported. The company attributes the losses to employee costs, technology investments, and rising credit losses. Klarna’s figure reporting comes amidst worsening economic conditions, fresh legal and regulatory scrutiny, and pressure from Big Tech competitors. [Read more on The Financial Times](https://www.ft.com/content/483451db-9221-4ca4-83a6-b4ddc6bfcfbb) [Read more on the Guardian](https://www.theguardian.com/business/2022/aug/31/klarna-losses-more-than-triple-as-consumer-spending-slows) One fifth of Snap employees to be laid off amidst poor financial performance Social media platform Snap (‘Snapchat’) has announced it will be laying off 20% of its employees and closing out a number of projects following a year of poor financial results.The move will see 1,200 employees globally lose their jobs, saving the company an estimated $500 million USD in costs. Snap is currently valued at $20 billion, an 84% decrease from its valuation of $130 billion last year. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/01/snap-to-lay-off-20-of-its-workforce-and-wind-down-a-number-of-projects/)
Aug 30, 2022

Global Ecommerce Weekly News: 30th August 2022

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Aug 23, 2022

Global Ecommerce Weekly News: 23rd August 2022

Get up to date with this week's ecommerce headlines from around the globe. --- Amazon News --- Amazon to add mental health support to primary-care service Amazon is set to move into mental health therapy with its primary-care division, following its recent acquisition deal of One Medical. The plan is to partner with virtual behavioural therapy service, Ginger, to offer its Amazon Care users with on-demand access to mental health services, licensed therapists and psychiatrists. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/08/11/amazon-plans-to-add-mental-health-support-to-primary-care-service/) GMB union calls for £15 an hour minimum pay at UK Amazon warehouses Amazon recently offered its warehouse workers a 3% pay rise, which in comparison to the June inflation rate of 9.4% left employees disappointed. Following this, hundreds of Amazon warehouse workers stopped work last week, protesting against the minimal pay increase, seeking a minimum of £15 an hour. Recent protests consisting of employee walkouts and sit-ins aim to get a better offer out of Amazon. [Read more on The Guardian](https://www.theguardian.com/technology/2022/aug/09/gmb-calls-for-15-an-hour-minimum-pay-at-amazon-warehouses-in-uk) Amazon third-party sellers have received their first-ever holiday fee hike Amazon’s third-party marketplaces account for close to half of the company’s online sales. The company introduced a 5% fuel and inflation charge to its third-party sellers earlier this year, and has now implemented another inflation increase charge. Commencing 14 October, any seller who uses Amazon’s fulfilment service is subject to the price hike, which is set to be an additional 35 cents per item for products sold in the US and Canada. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/08/17/amazon-third-party-sellers-have-received-their-first-ever-holiday-fee-hike/) Amazon puts a pause on UK grocery shop roll-out as the cost of living increases Amazon has slowed down on its UK roll-out of till-free Amazon Fresh grocery stores following disappointing sales and the rise in cost of living. Allegedly, the company is no longer looking for potential sites to expand and if more stores are opened, they will likely no longer use a till-free system, as consumers become more cautious about spending. [Read more on The Telegraph](https://www.telegraph.co.uk/business/2022/08/21/amazon-pauses-uk-grocery-shop-roll-out-following-disappointing/) --- Other Marketplace News --- Shopee overtakes Alibaba across international markets Shopee has surpassed Alibaba and taken the top spot for sales outside of China. Singapore-based marketplace saw a year-on-year increase of 51.4% at the end of Q2 of this year, while Alibaba saw a 3% drop during the same time period. This can be seen as a promising development for start-ups and their ability to compete with some of the largest ecommerce giants in the market. [Read more on Exchange Wire](https://www.exchangewire.com/blog/2022/08/18/shopee-surpasses-alibaba-in-international-sales-amazon-searches-for-entertainment-exec/) H&M reopens its official store to Alibaba’s Tmall ecommerce platform It has been nearly 18 months since Alibaba removed H&M from its Tmall platform, following H&M’s criticism of human rights abuses in Xinjiang. It is estimated that over a million people, predominantly minorities in the area, have been unlawfully detained in camps across the city. Brands including Nike, Adidas, Burberry and Converse were swept up in the controversy, however H&M was one of the first to be targeted for speaking out about the issue. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/08/16/hm-returns-to-alibabas-tmall-platform-16-months-after-xinjiang-controversy/) Klarna launches new feature allowing UK consumers to view full online order history Buy-now-pay-later company, Klarna, has launched a new feature on its shopping app, which allows UK consumers to view their full online order history, regardless of whether they purchased the product using Klarna. The feature also shows delivery tracking and aids consumers in managing their online purchases more conveniently. [Read more on The Industry](https://www.theindustry.fashion/klarna-launches-new-feature-allowing-uk-consumers-to-view-full-online-order-history/) --- Other Ecommerce News --- Online marketplaces responsible for £280 billion business turnover in the UK Nearly 900,000 UK businesses are currently selling on online marketplaces, generating an estimated £282 billion worth of sales each year. This figure represents 6% of the UK’s annual business turnover, highlighting the notable contribution that marketplaces make to the UK economy, along with the potential for further growth in this area. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/08/09/online-marketplaces-responsible-for-280-billion-business-turnover-in-uk/)