DSP is frequently sold as the next step after Sponsored ads. Sometimes it is. Often it is a budget moved from a channel that was working into one the brand is not yet set up to measure.
Five readiness checks
- Detail pages converting at or above category benchmark. DSP multiplies what the page already does, in either direction.
- Search impression share close to saturated on priority non-branded terms. If there is still room in capture, buy that first.
- Enough review depth that a first-time visitor is not put off. Upper-funnel traffic is colder and less forgiving.
- Stock cover for a sustained period. Prospecting into a stockout is money set on fire.
- A measurement framework agreed in advance, based on new-to-brand orders and branded search volume.
DSP versus Sponsored Display
Sponsored Display runs from your advertising account, is simpler to set up and mostly retargets around Amazon. DSP has broader inventory including off-Amazon placements and streaming, considerably richer audience building, and correspondingly higher minimums and setup effort.
For many brands the honest answer is that Sponsored Display, properly managed, covers the retargeting need and DSP is not yet justified.
Judging it fairly
The most common way a DSP programme fails is being compared to Sponsored Products on ROAS in month two. They are different channels doing different jobs. Capture advertising intercepts existing demand; DSP tries to create some. Measured on last click, the first will always win.
Judge DSP on new-to-brand orders, cost per new-to-brand order, and whether branded search volume rises over a full purchase cycle. Agree those measures before launch, because agreeing them afterwards never goes well.