Amazon's new advertising method will greatly alleviate the continuous involution of in-site advertising

Cross-border sellers urgently need to reduce costs and increase profits!

Even good wine needs a bush. Amazon’s on-site advertising marketing has become the top priority for the majority of cross-border sellers. However, the price of bidding ads has soared, and sellers’ expenditure costs have continued to rise. Amazon’s advertising revenue has surpassed Facebook to become the world’s second largest advertising platform . However, with the introduction of the AMC crowd function by DSP advertising to reduce sellers’ costs , the situation of “ keyword placeholder gameplay has caused sellers to continue to increase their on-site advertising expenses ” has been alleviated.

DSP advertising helps cross-border sellers reduce costs and increase profits!

As we all know, DSP (Demand-Side Platform) advertising is actively pushed display advertising. It uses Amazon's real consumer data and big data analysis to provide sellers with the opportunity to actively reach target consumer groups. In simple terms, it actively and accurately displays the brand to consumers.

DSP advertising covers all four stages of the consumer funnel, helping sellers achieve different goals of brand building, attracting new traffic, promoting conversions, and enhancing the stickiness of loyal users . According to incomplete statistics, the advantages of DSP advertising are as follows:

1. Actively find people. As long as they have Amazon crowd tags, off-site audiences can also be accurately located;

2. More advertising slots, currently 14 in total;

3. Crowd targeting is more flexible, and the lookback period can be customized to 7 days, 14 days, 30 days, 45 days, and up to 90 days;

4. You can exclude people. People who have purchased but have low purchasing potential can be excluded, with a maximum lookback period of 365 days;

5. It can be placed both inside and outside the Amazon site. It can store water, attract new customers, and convert and harvest;

6. Sellers who place orders on DSP can experience multiple modules of AMC (Amazon Marketing Cloud). AMC combines all CPC advertising and DSP advertising data, as well as flagship store data. AMC crowd packages can be pushed to CPC advertising on the site, strongly promoting the click-through rate and conversion of on-site advertising.

DSP ads can be called a powerful tool to increase sales and conversions. When used with SP ads, the effect is doubled. A real seller case shows that before using DSP ads, the conversion rate of SP ads was less than 60%. However, after placing DSP ads before SP ads to actively show the brand to consumers, the conversion rate increased by nearly 10%.

DSP advertising plays many roles in operations. For example, sellers can understand DSP advertising and gain first-hand data, thus maximizing the effectiveness of Amazon's global advertising .

At present, domestic sellers do not have the autonomy to place DSP ads, and their understanding of DSP ads is relatively limited. Therefore, they usually place ads through agents, so sellers must pay an additional agency fee.

Advertising costs are skyrocketing! Controlling DSP is urgent

In an operating environment where advertising fees are skyrocketing, sellers need to control DSP advertising.

Competition in the global e-commerce market is becoming increasingly fierce, and advertising investment by overseas sellers is increasing year by year. Whether they are Amazon sellers, non-Amazon sellers, or sellers who sell goods on Amazon and run independent websites, they are fighting fiercely in the existing market.

Taking Amazon sellers as an example, data from the e-commerce advertising platform Pacvue shows that during Cyber ​​Monday in 2024, Amazon sellers' overall advertising spending increased by 23.3% year-on-year, and the cost per click (CPC) was as high as $2.12, an increase of 15.8%. This is just a small feedback on the rising advertising costs of sellers. Sellers' profits are constantly being eaten up by advertising fees, and Amazon's advertising department is growing rapidly. In the third fiscal quarter of 2024, Amazon's online advertising business revenue reached $14.3 billion, a year-on-year increase of 19%.

Since the Amazon account ban, the situation of manipulating rankings by fake orders has been reduced, and everyone's competition has shifted to the advertising level. Even if some sellers do not want to actively increase advertising spending, as the platform becomes more and more involuted and competition becomes increasingly fierce, sellers have to pay high-priced advertising to maintain product rankings and gain a better competitive advantage.

According to the personal experience of many Amazon sellers, on-site advertising fees used to only account for 5% of overall operating costs, but now have risen to 10%, or even up to 20%.

The use of Amazon DSP advertising will undoubtedly rapidly cool down the sky-high advertising costs. It can also improve the overall operation level of sellers and quickly promote the brand, which can be said to kill two birds with one stone.

DSP advertising benefits, up to 50% rebate!

In recent years, Amazon has continuously upgraded the effectiveness of DSP advertising with the aim of helping sellers maximize their profits.

For example, Amazon has simplified the DSP advertising workflow, allowing advertisers to create advertising campaigns in just a few clicks. According to tests, the time required to set up advertising campaigns has been reduced by 75% compared to before. It has also launched an ad promotion frequency cap control function, which can help advertisers save up to 26% of their campaign budget and increase reach by 21%.

At the same time, Amazon has also launched a new feature - "AMC Custom Audience", and the data of DSP advertising can also be applied to the site. AMC stands for Amazon Marketing Cloud. Advertisers can easily use the behavioral event data of customers on Amazon based on AMC to conduct model analysis and generate aggregate reports. The new feature opens up more customer shopping behaviors to advertisers, such as browsing, clicking, adding to cart, adding to wishlists, shopping paths, etc. In this way, sellers can grasp more shopping information of customers and carry out more precise advertising, which greatly reduces CPC costs on the site and improves conversion rates .

Now is the peak season for cross-border e-commerce sales. Amazon sellers will seize the DSP advertising dividend, which will undoubtedly help boost store sales to a higher level and successfully achieve breakthrough growth. Amazon sellers have ushered in a major benefit. Sellers who sell on Amazon and run independent websites can also achieve better results through DSP advertising.

It is understood that among the AMC population, there is first-party data, which is the historical data of independent station placement uploaded by sellers, including data placed on FB and Google . From the seller's point of view, it is necessary to find the overlap between this part of the advertising population and Amazon, that is, the people who use FB and Google are also on Amazon, and directly convert them into transactions through SP/SB, so as to truly achieve the integration of brand and effect across all channels.

In addition to Amazon sellers and sellers who sell both Amazon and independent websites, non-Amazon sellers can also use DSP advertising (non-Amazon sellers are NE - if they are e-commerce companies, it means that they have not opened a store on the Amazon e-commerce platform; if they are non-e-commerce companies, NE refers to special Amazon e-commerce platforms that do not sell categories such as: APP, finance, travel, automobiles, education, etc.).

Good news is here. Non-Amazon sellers who place DSP ads and place a total amount of more than 40,000 US dollars in 2 months can enjoy a 50% discount settlement. This promotion ends on March 31, 2025. Interested sellers can contact Enen.com to get the discount immediately. Amazon specially invites Enen.com to participate in the Amazon MDF promotion and provide Amazon DSP advertising services to merchants .

E-EN has been deeply engaged in cross-border e-commerce for 14 years, providing market and marketing services to many global Internet giants such as Google, Meta, Microsoft Bing, Alibaba, TikTok, Amazon, etc., and has accumulated rich experience and resources in e-commerce overseas expansion.

Through Yien's DSP advertising, we can help you reduce advertising costs, open traffic entrances, and improve advertising conversions. Add Yien's customer service WeChat : yienwang-001 , or scan the QR code below to learn about DSP business immediately.

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