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Choosing Between PPC (Pay-Per-Click) and DSP (Demand-Side Platform) Based on Your Marketing Goals and Strategy
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But First! What Are The Main Differences Between The Two? DSP • Cost - Paid for upfront and has a set budget • Targeting - Big inventory of audiences to pull from - EXCEPT keywords. Retargeting, off Amazon audiences, In Market and Lifestyle • Off Amazon Advertising - Can Pixel websites to create lookalike audiences based on existing .com traffic • Dynamic Creative - DSP has access to what is called “responsive e-commerce” creatives which can dynamically change the ASINs that show PPC • Cost - You pay when someone clicks on your ad • Targeting - Keyword, category, product, retargeting. On Amazon • Off Amazon Advertising - With streaming TV there is more opportunity but no opportunity to pixel existing websites • Dynamic Creative - Static creative& Video
When Is One Option Better Than The Other? The Answer mainly revolves around three things: • Budget of Client • Size of catalog • Goals for Campaigns
Budget is an important distinction for evaluating DSP vs. traditional PPC because of the following reasons • DSP has access to broad audiences such as in-market, lifestyle, pixeled traffic, brands, websites off Amazon, etc • Smaller budgets (think less than $10k a month dedicated to DSP) won’t be able to leverage the majority of audiences • Smaller budgets, especially for new brands, is better served with traditional PPC advertising to better catch customers in Sponsored Product placements and lower hanging Budget
Catalog size can help determine if DSP or PPC is the better choice for the following reasons • Large catalogs usually mean the client has a .com site • DSP is able to pixel their .com to create lookalike audiences (audiences on Amazon that match the behaviors of the .com audiences) • Larger catalogs (usually) have the ability to cross sell different products within their own category which can be advertised on DSP through Brand targeting, Brands, Amazon Store, etc. • PPC segmentation of larger audiences becomes more tedious with campaigns and ad groups • If a client has a larger catalog, DSP would be a great fit due to the dynamic creatives it can producte Size of Catalog
The Goals for the campaigns might be the biggest indicator for when DSP or PPC is better • A client who wants a full funnel approach to their campaigns can achieve that on both PPC and DSP • That said, refer to the first two points to evaluate their budget and catalog size • If a client is only worried about ROAS/TACOS, PPC would be the better choice • DSP excels at TOFU/MOFU audiences although does have BOFU • Brand new products on Amazon would benefit from adding DSP (as opposed to only running DSP) as the audience number can help achieve the TOFU/MOFU while PPC can help with BOFU Goals for Campaigns
Other Resources The truth about when to make the choice between PPC and DSP is its all client dependent. A client could have a large budget, large catalog and big goals for their campaign and still not want DSP. Other clients will have a small budget, small catalog and a narrow focus and want to try it. DSP is best served with PPC in the beginning unless its been run before. HERE is a great article outlining further examples of when to use DSP vs. PPC