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Amazon’s DSP Continues To Grow

November 4, 2019/in Marketing /by Kevin Richards

Amazon continues to grow within the digital advertising space. According to a study by Tinuiti digital marketing agency, ad spend on Amazon’s DSP saw a 30% increase in Q3, up from the 27% increase seen in Q2. According to the Tinuiti report, all signs point to the Amazon advertising platform continuing to gain momentum within the digital advertising space.

Though the majority of ad spend on the platform is dedicated to driving sales, brand awareness campaigns make up 42% of ad spend through Amazon. The report also states that 32% of Amazon DSP spend in Q3 is being dedicated to sites outside of those controlled by the company. This shows that brands are beginning to view Amazon advertising as more than just an avenue to drive sales.

As more advertisers invest in advertising on Amazon, the cost of advertising on the platform has been steadily increasing. Cost-per-thousand-impressions (CPM) have seen a 15% increase in Q3, which is up from a 5% rise seen in Q2. The cost-per-click also rose 10%. This increase in cost correlates with an increase in conversions. Revenue generated by Sponsored Products jumped 30% while clicks climbed 18%.

With Amazon’s advertising services on the rise, the company seems poised to compete with the likes of Facebook and Google within the digital advertising arena. In the increasingly competitive realm of digital advertising, brands should consider the Amazon platform as a potential avenue for generating both sales and online engagement. 

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