Amazon Advertising Strategy: Google Ads vs Amazon Ads vs Amazon DSP

Amazon’s advertising landscape has evolved significantly, with multiple ad platforms available to sellers. Understanding the key differences between Google Ads, Amazon Ads, and Amazon DSP is crucial for developing a cost-effective Amazon advertising strategy that maximizes reach and conversions.

Each platform serves a different purpose, Google Ads drives external traffic, Amazon Ads enhances marketplace visibility, and Amazon DSP leverages audience targeting for precise retargeting. This article breaks down their advantages and how to use them effectively.

What is Google Ads for Amazon?

Google Ads allows sellers to drive external traffic to Amazon by leveraging Google’s search and display networks. This strategy increases visibility, diversifies traffic sources, and can improve product ranking on Amazon.

Advantages of Google Ads for Amazon

Google Ads offers several benefits for Amazon sellers:

• Higher Visibility: Targets shoppers beyond Amazon, capturing users actively searching for related products.
• Improved Amazon Ranking: External traffic signals Amazon’s algorithm, potentially boosting organic rankings.
• Lower Competition: Bidding for Google keywords can be more cost-effective than Amazon PPC in some niches.
• Brand Referral Bonus (BRB): Amazon rewards sellers with up to 10% of sales revenue for external traffic conversions.

Foundations Needed for Success with Google Ads

• Keyword Strategy: Focus on high-intent search terms relevant to your product.
• Optimized Amazon Listing: Ensure compelling images, descriptions, and strong reviews for high conversion.‍
• Tracking with Amazon Attribution: Use tracking links to measure campaign performance and optimize spending.

What is Amazon Ads?

Amazon Ads is Amazon’s internal advertising platform that allows sellers to promote products directly within the marketplace. It includes Sponsored Products, Sponsored Brands, Sponsored Display, and Video Ads, all designed to increase visibility and sales.

Advantages of Amazon Ads

Amazon Ads provides several key benefits for sellers:

• High Purchase Intent: Targets shoppers already browsing Amazon, leading to higher conversion rates.
• Varied Ad Formats: Offers multiple ad types to engage customers at different stages of their buying journey.
• Better Organic Ranking: Increased sales from ads can improve a product’s position in search results.

Foundations Needed for Success with Amazon Ads

• Strong Keyword Targeting: Use automatic and manual campaigns to refine performance.
• Competitive Pricing & Reviews: Ensure your product remains competitive for higher conversion rates.‍
• Campaign Monitoring & Optimization: Regularly analyze data and adjust bids for efficiency.

What is Amazon DSP Advertising?

Amazon DSP(demand-side platform) is a programmatic advertising platform that enables brands to reach audiences both on and off Amazon. It leverages Amazon’s first-party data to target shoppers based on behavior, interests, and demographics. Using real-time bidding (RTB), it automates ad placements across Amazon-owned properties and third-party websites, maximizing reach and efficiency.

Advantages of Amazon DSP Advertising

• Advanced Audience Targeting: Uses in-depth customer insights to reach high-intent shoppers.
• Retargeting Capabilities: Helps re-engage customers who viewed your product but didn’t purchase.
• Omnichannel Reach: Displays ads across Amazon-owned sites, third-party websites, and apps.

Foundations Needed for Success with Amazon DSP

• Defined Audience Strategy: Use demographic, behavioral, and retargeting data for effective targeting.
• Optimized Creatives: Leverage compelling display and video ads to maximize engagement.‍
• Adequate Budget: DSP campaigns typically require a higher budget than Amazon PPC.

Comparing Google Ads, Amazon Ads, and Amazon DSP

Each advertising platform, Google Ads, Amazon Ads, and Amazon DSP, offers unique advantages for sellers looking to drive traffic, increase conversions, and build brand awareness. Understanding their key differences helps in developing a well-rounded marketing strategy.

1. Traffic Source & Audience Targeting

• Google Ads: Targets users searching on Google or browsing across Google’s Display Network, YouTube, and partner sites. It reaches customers early in the buying journey.
• Amazon Ads: Targets shoppers already browsing Amazon, capturing high-intent buyers closer to making a purchase.
• Amazon DSP: Uses Amazon’s first-party data to target audiences across Amazon properties (Fire TV, Twitch, IMDb) and external websites, focusing on both new customer acquisition and retargeting.

2. Ad Formats

• Google Ads: Includes Search Ads (text-based), Display Ads (banner), Shopping Ads (product listings), and YouTube Video Ads.
• Amazon Ads: Features Sponsored Products, Sponsored Brands, and Sponsored Display Ads, all within Amazon’s marketplace.
• Amazon DSP: Offers programmatic display, video, and audio ads across Amazon and external websites.

3. Cost & Campaign Structure

• Google Ads: Operates on a cost-per-click (CPC) and cost-per-thousand-impressions (CPM) model or cost-per-view (CPV), requiring strong keyword research.
• Amazon Ads: Uses both CPC and vCPM (viewable CPM) models, with costs fluctuating based on competition for keywords and ad placements. Sponsored Products and Sponsored Brands run on CPC, while Sponsored Display supports vCPM bidding.
• Amazon DSP: Supports a cost + fees pricing model, where advertisers can opt for additional services such as targeting and measurement. It also offers fixed CPM campaigns, where the CPM price is influenced by supply and demand factors and can be pre-negotiated between advertisers and Amazon. Campaigns can be guaranteed or non-guaranteed and may include inventory from Amazon-owned, third-party, or blended sources.

4. Best Use Cases

• Google Ads: Ideal for driving external traffic to Amazon listings and increasing product ranking through Amazon Attribution.
• Amazon Ads: Best for capturing high-intent shoppers already on Amazon, leading to direct conversions.
• Amazon DSP: Effective for retargeting past visitors, building brand awareness, and running advanced audience-based campaigns.

By combining these platforms strategically, sellers can maximize visibility, capture different customer segments, and optimize their ad spend for better overall performance.

Table: Google Ads vs Amazon Ads vs Amazon DSP

When to Start Different Campaign Types

Choosing the right time to launch different advertising campaigns is essential for maximizing return on investment and scaling efficiently. A well-planned Amazon advertising strategy ensures effective use of Google Ads, Amazon Ads, and Amazon DSP at different business stages. Below is a strategic approach for initiating these campaigns.

1. Google Ads for Amazon

Best Time to Start:

• Pre-Launch & Early Growth: Ideal for generating external traffic and building brand awareness.
• Product Launch: Helps drive initial sales, increasing Amazon ranking.
• Scaling Phase: Used to diversify traffic sources and capture high-intent buyers.

Key Considerations:

• Works well for competitive markets where organic visibility takes time to develop.
• Requires well-optimized Amazon listings for high conversion rates.
• Tracking is essential using Amazon Attribution to measure performance.

2. Amazon Ads (Sponsored Ads)

Best Time to Start:

• Immediately Upon Listing Activation: Essential for driving sales and visibility from day one.
• Product Launch & Keyword Testing: Helps determine the best-performing keywords.
• Ongoing Optimization: Continuously refine campaigns based on search trends and conversion data.

Key Considerations:

• Prioritizes direct product visibility within Amazon’s marketplace.
• Requires budget flexibility to scale as competition increases.
• Works best when combined with external traffic sources like Google Ads.

3. Amazon DSP Advertising

Best Time to Start:

• Post-Launch & Growth Phase: Best for retargeting warm audiences and increasing brand recognition.
• When Running External Ads: Complements Google Ads by retargeting visitors who interacted with Amazon listings.
• High-Traffic Seasons: Maximizes impact during holidays and peak shopping events.

Key Considerations:

• Requires a larger budget compared to Sponsored Ads.
• Ideal for established brands looking to expand market reach.
• Works best when integrated with other campaign types for full-funnel advertising.

How to Combine All Three Effectively

Integrating Google Ads, Amazon Ads, and Amazon DSP into a unified Amazon advertising strategy allows sellers to maximize visibility, conversion rates, and long-term brand growth. Each platform serves a distinct role in the marketing funnel, and leveraging them together ensures a comprehensive advertising approach.

1. Awareness: Capturing External Traffic with Google Ads

Objective: Drive high-intent external traffic to Amazon listings.

Tactics:

• Use Google Search Ads for keyword-based targeting.
• Implement Google Display Ads to reach potential buyers across websites and YouTube.
• Track effectiveness using Amazon Attribution to measure conversions and optimize campaigns.

How It Connects: Brings new shoppers into Amazon’s ecosystem, increasing sales velocity and organic ranking.

2. Consideration: Driving On-Amazon Engagement with Amazon Ads

Objective: Ensure product visibility within Amazon’s marketplace.

Tactics:

• Run Sponsored Products Ads for direct product searches.
• Use Sponsored Brands Ads to enhance brand awareness.
• Leverage Sponsored Display Ads to target competitor listings.

How It Connects: Converts traffic generated from Google Ads into Amazon sales while improving ranking signals.

3. Retargeting & Scaling: Using Amazon DSP for Full-Funnel Marketing

Objective: Re-engage potential customers and maximize conversions.

Tactics:

• Retarget shoppers who visited but didn’t purchase.
• Cross-sell complementary products to existing customers.
• Utilize Lookalike Audiences to expand reach.

How It Connects: Keeps Amazon traffic engaged, increasing repeat purchases and customer lifetime value.

A synchronized approach ensures efficient ad spend, stronger brand positioning, and higher conversion rates across all channels.