What is Amazon DSP
Win Customers at Scale using Data-Driven Strategies with Amazon DSP
PROUDLY TRUSTED BY
Why Clear Ads?
Reach Unique Audience at Scale
Re-engage Interested Consumers
Data Driven Decision-Making
Surpass Previous Sales
- PROUD TO HAVE WORKED WITH -
Recent Successes
Breaking Into New Markets: Successfully Launching a Best-Selling Vitamin Brand in the US
Increased revenue from $1.1M per month to $2.1M per month inside 12 months whilst maintaining a low ACoS
Reduced ACoS from 37% – 22% in 2 months whilst increasing sales by 220%
What Our Clients Say...
George and his team are terrific all around. They’ve managed our Amazon DSP for about 4 years and are now handling our Amazon PPC.
Michael Kaufman
Mallory
Raino
Revolutionizing Beauty: Boosting DSP Revenue by 48% While Slashing Ad Spend by 13%
Reduced ad spend by 13% while boosting DSP revenue by 48%
Substantial enhancement of RoAS.
Significant increase to the Conversion Rate (CVR)
Introduction
The beauty industry stands as a highly competitive and ever-evolving landscape, requiring brands to innovate and adapt constantly. This case study explores the concerted efforts of beauty brands, to enhance market performance through strategic Demand Side Platform (DSP) retargeting and multifaceted digital marketing approaches.
Challenges
The primary challenges faced included:
- Stagnating sales.
- Escalating Cost Per Acquisition (CPA).
- Heightened competition, particularly during key sales periods like the holiday season.
- Inventory pacing issues.
- Maintaining relevance amidst shifting consumer behaviors and preferences.
Goals and Objectives
The overarching goal was to rejuvenate sales and amplify brand awareness within the beauty category. Specifically, strategies aimed to optimize ad spend efficiency, bolster Return on Ad Spend (RoAS), and navigate inventory challenges. The ambition extended to maximizing seasonal sales opportunities and integrating new product launches into the existing marketing framework.
Strategies and Execution
- Ad Spend and Revenue Optimization: A recalibrated approach reduced ad spend by 13%, yet a significant DSP revenue increase by 48%. This strategic pullback was informed by analytics and past performance, emphasizing quality over quantity in ad exposure.
- Inventory and Sales Period Management: Addressing inventory pacing issues, especially during peak sales periods, was crucial. Efforts were concentrated on balancing inventory levels to avoid stockouts and leveraging high-performance periods effectively.
- Contextual and Creative Advertising: Adopting contextual targeting and testing new creative formats aimed to enhance audience engagement. Specific campaigns, such as those for Nailbond, were optimized for higher conversion rates and better audience reach.
- Seasonal and Event-driven Marketing: Capitalizing on events like Valentine’s Day and St. Patrick’s Day, brands tailored their marketing efforts to exploit these high-traffic periods, enhancing visibility and driving sales.
- Product Launches and Performance Tracking: New product introductions were strategically timed and supported by targeted advertising efforts—continuous monitoring allowed for agile responses to market dynamics and performance metrics.
Outcomes & Achievements
Here are the most significant outcomes from our work within the beauty category:
- Ad Spend Efficiency: We masterfully reduced ad spend by 13% while simultaneously boosting DSP revenue by an impressive 48%. This strategic reallocation underscores our commitment to maximizing efficiency and effectiveness, proving that less can indeed be more when spent wisely.
- Return on Ad Spend (RoAS) Enhancement: Our targeted strategies and meticulous ad placements resulted in a substantial enhancement of RoAS. This achievement highlights our ability to not only navigate but also capitalize on the complexities of the digital advertising landscape.
- Conversion Rate (CVR) Improvement: Through innovative targeting and creative strategies, we significantly increased the CVR, showcasing our ability to connect with and convert the right audiences. This marks a leap forward in our customer acquisition strategies, setting new benchmarks for success.
- Seasonal Sales Maximization: By leveraging key sales periods with tailored marketing efforts, we ensured that our brands stood out during high-traffic events like Valentine's Day and St. Patrick's Day, driving visibility and sales to new heights.
- Inventory and Sales Period Management: Our strategic approach to inventory pacing and sales period management prevented stockouts and maximized sales opportunities, demonstrating our adeptness at navigating logistical challenges with strategic foresight.
- Innovative Product Launches: The strategic timing and support for new product launches led to seamless market introductions and robust sales performance, affirming our ability to synchronize market trends with brand offerings.
Lessons and Future Directions
Moving forward, the focus will remain on expanding product targeting, exploring new creative avenues, and leveraging data analytics for informed decision-making. Brands are set to continue refining their approaches to DSP and PPC campaigns, aligning with consumer trends and seasonal opportunities.
Conclusion
The strategic overhaul in the beauty category demonstrates the potency of targeted digital marketing and the value of data-driven decision-making. By confronting challenges head-on and embracing innovative approaches, brands have set a new standard for success in the competitive beauty market, illustrating the transformative power of adaptability and strategic foresight in the digital age.
How Does it Work?
We take a simple 4-step approach to help you make the most of Amazon DSP
Ready to take the next step in your advertising journey? Book a consultation now.
1. Review
We review your inventory to identify suitable and eligible products for the DSP
2. Develop
We develop a personalized strategy that aligns with your business goals and objectives
3. Implement
We put this strategy into place so you can start enjoying the benefits
4. Optimize
We continually optimize your strategy to ensure it keeps delivering
Amazon DSP Unique Features
Adverts
Targeting Segments
As Amazon is the only DSP platform that actually owns its own data, it is able to use that wealth of information to ensure that your adverts appear to the most appropriate audience taking into consideration their spending patterns and information provided to Amazon. This can range from education, devices used, cat/dog owners, those interested in baby gifts, baking supplies and so many other different segments.
Supply Sources
See how we can help you maximise revenue from your ad spend
Full Service Management Pricing
Amazon DSP Full
Starting PriceMonthly and 10% of Ad Spend
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Fully Managed Monthly Amazon Ad Spend
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Up to 200 ASINs Managed
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Dedicated account manager
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Access and use of Amazon's exclusive 1st party buying data
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Monthly & Quarterly Reporting
DSP Lite
Starting PriceMonthly and 8% of Ad Spend
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Precision Retargeting: Re-engage past buyers
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Cutting-Edge Targeting: Leverage advanced contextual targeting
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Expand Your Reach: Reach audiences both on and off Amazon’s platform.
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Target up to 5 ASINs
Other Services
Amazon Marketing Services
Amazon Full Service
Frequently Asked Questions
How much does Amazon DSP management cost?
Amazon DSP management starts at $2,500 a month plus 10% of ad spend on DSP Full, or $850 a month plus 8% of ad spend on DSP Lite. The final price depends on how many ASINs you advertise, whether you target only the bottom of the funnel or the middle and top too, and how many marketplaces you run. Request a callback for a quote based on your account.
What is the difference between DSP Full and DSP Lite?
DSP Full is fully managed Amazon DSP for catalogs of up to 200 ASINs, while DSP Lite is a smaller package for up to 5 ASINs. DSP Full includes a dedicated account manager, access to Amazon's first-party shopping data, and monthly and quarterly reporting. DSP Lite focuses on retargeting past buyers, contextual targeting, and reaching audiences on and off Amazon.
What is the minimum ad spend for Amazon DSP?
The minimum ad spend is $5,000 a month on DSP Full and $3,000 a month on DSP Lite. Ad spend is your media budget in Amazon DSP. Our management fee is separate from it: a monthly fee plus a percentage of your ad spend, which is 10% on DSP Full and 8% on DSP Lite.
Is my brand eligible for Amazon DSP?
Before we start Amazon DSP, we look for brands with proven demand and strong product pages. That means more than $2.5 million a year through one marketplace ($1.5 million for consumables), at least 3 retail-ready products with more than 200 reviews and a rating of 4.5 or higher, at least 5,000 organic and paid clicks a month to at least 5 products, and a conversion rate above your industry average. See the tests your product should pass first.
Do I need Amazon DSP if I already run Sponsored Ads?
Amazon DSP makes the most sense once Sponsored Ads have reached most of the search demand for your products. Sponsored Ads show when shoppers search. Amazon DSP is Amazon's programmatic platform: it uses Amazon's first-party shopping data to reach new customers at the middle and top of the funnel, and to re-engage people who viewed your products but did not buy.
Can Amazon DSP ads show outside of Amazon?
Yes. Amazon DSP ads can run on Amazon-owned sites, such as Amazon and IMDb, and on third-party websites and apps through open exchanges. That lets you reach shoppers while they are away from Amazon, build awareness of your products, and bring interested shoppers back to your product pages.
How does Clear Ads manage Amazon DSP?
We manage Amazon DSP in four steps: review, develop, implement and optimize. We review your inventory to find suitable and eligible products, develop a strategy around your business goals, put it live, and keep optimizing it. Campaigns run in Clear Ads' own Amazon DSP instance, so our team manages them day to day. DSP Full includes monthly and quarterly reporting.
What results has Clear Ads achieved with Amazon DSP?
Results vary by brand, but our DSP work includes a beauty client that grew DSP revenue by 48% while cutting ad spend by 13%, a home decor brand new to DSP that held an average ROAS of 15.1 over nine months, and a shaving products brand that passed $1 million in product sales on Amazon DSP in under two years. Read our Amazon DSP case studies.