Amazon PPC vs. Amazon DSP: Understanding the Key Differences

If you’re selling on Amazon and looking to boost your sales, you’ve likely heard of Amazon PPC (Pay-Per-Click) and Amazon DSP (Demand-Side Platform). While both platforms help businesses advertise their products, they serve different purposes and offer distinct features. Understanding the differences between Amazon PPC and DSP can help you choose the right tool for your advertising strategy.

Let's break down what each platform does, how they differ, and when you should use one over the other.

What is Amazon PPC?

Amazon PPC is a pay-per-click advertising model that lets sellers promote their products on Amazon. As the name suggests, you only pay when someone clicks on your ad. Amazon PPC is designed to drive direct sales by placing ads in front of potential customers who are already browsing or searching for products similar to yours.

Amazon PPC Example with the search keyword "Electrolytes"

There are three main types of Amazon PPC ads:

1. Sponsored Products: These ads appear in search results and product pages, promoting individual products. They help you get noticed by shoppers actively looking for items like yours.

2. Sponsored Brands: These ads show a custom headline, brand logo, and a selection of your products. They appear at the top of search results and are perfect for boosting brand awareness while promoting multiple products.

3. Sponsored Display: These ads can appear on product detail pages or third-party websites. Sponsored Display ads can also target customers who have previously shown interest in your products, helping you re-engage potential buyers.

   
   

Amazon PPC is all about visibility and driving immediate conversions. It’s simple to use and typically involves targeting specific keywords or product categories.

What is Amazon DSP?

Amazon DSP (Demand-Side Platform) is a more advanced advertising platform that enables advertisers to buy display, video, and audio ads across Amazon’s properties and external websites. Unlike Amazon PPC, DSP uses programmatic advertising and allows advertisers to bid on ad impressions rather than just clicks.

With Amazon DSP, you can reach customers beyond Amazon.com, including on websites, mobile apps, and even streaming services like Prime Video and Amazon Fire TV. This makes DSP an ideal tool for brand awareness, customer acquisition, and retargeting.

Amazon DSP Example from Amazon website

The power of Amazon DSP lies in its ability to leverage Amazon’s first-party data. It allows you to target specific audiences based on their shopping behaviors, interests, demographics, and even purchase history.

Key Differences Between Amazon PPC and Amazon DSP

While both Amazon PPC and DSP are effective ways to promote products, they differ in several key areas. Here’s a comparison of the two:

1. Advertising Model

• Amazon PPC: In PPC campaigns, you pay only when a customer clicks on your ad. It’s performance-driven, meaning you only pay for actual engagement, making it ideal for driving immediate sales.

• Amazon DSP: DSP uses programmatic advertising, where you can buy impressions (CPM - cost per thousand impressions) or clicks (CPC). It’s more focused on reaching a broader audience and building brand recognition, even before a customer decides to make a purchase.

  
  

2. Targeting

• Amazon PPC: The targeting is based on keywords and product categories. Your ads show up when users search for specific keywords or browse certain products.

• Amazon DSP: DSP offers more advanced targeting options, including reaching customers based on their demographics, interests, and previous shopping behaviors. You can even retarget users who have interacted with your brand on Amazon or other websites.

  
  

3. Ad Formats

• Amazon PPC: Amazon PPC is primarily focused on three ad formats: Sponsored Products, Sponsored Brands, and Sponsored Display. These are relatively straightforward and appear on Amazon’s website or app.

• Amazon DSP: Amazon DSP offers a wider range of ad formats, such as display ads, video ads, audio ads, and rich media ads. These can appear not just on Amazon but also on third-party websites and apps, allowing you to reach customers across the entire web.

  
  

4. Campaign Goals

• Amazon PPC: The main goal of PPC is to drive direct product sales. It’s great for sellers who want to increase visibility and get more clicks to their product pages.

• Amazon DSP: DSP is more about brand-building and customer acquisition. It’s ideal for running campaigns that raise awareness, retarget customers, or engage users at different stages of the buying funnel.

  
  

5. Management and Complexity

• Amazon PPC: Amazon PPC is typically easier to manage and is suitable for small to medium-sized businesses. It’s user-friendly and can be managed directly through Amazon Seller Central or the Advertising Console.

• Amazon DSP: DSP is a more complex tool and often requires advanced expertise. Due to its broad reach and targeting options, it may be beneficial to work with an agency or an Amazon representative to get the most out of your campaigns.

  
  

When to Use Amazon PPC vs. Amazon DSP?

Amazon PPC is perfect for you if:

• You want to increase product visibility on Amazon and drive immediate sales.

• You need a simple, easy-to-manage solution for advertising.

• You’re focused on keyword targeting and driving conversions through product-specific ads.

Amazon DSP is the right choice if:

• Your goal is to build brand awareness and engage with customers at different points in their buying journey.

• You want to retarget users who have interacted with your brand or products.

• You’re looking to expand your reach beyond Amazon and advertise across third-party websites and apps.

Both Amazon PPC and Amazon DSP are powerful advertising tools, but they serve different purposes. Amazon PPC is ideal for sellers looking to promote individual products and drive direct sales. It’s straightforward, easy to use, and perfect for those focused on keyword targeting and product visibility. On the other hand, Amazon DSP is more suitable for building long-term brand awareness, retargeting, and reaching customers outside of Amazon’s ecosystem.

By understanding the key differences between the two, you can choose the right platform based on your advertising goals and business needs. Whether you want quick sales or a more comprehensive brand-building strategy, Amazon offers powerful tools to help you succeed.

For more customized help with Amazon PPC and Amazon DSP reach out to me at hello@newsboymarketing.com.