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Amazon DSP is one of the most effective platforms for brands to connect with audiences across Amazon owned properties and external publishers. However many advertisers struggle to balance cost efficiency with scale. High CPM can limit the value of campaigns while low reach can restrict brand awareness. The key is to create a strategy that reduces CPM while expanding reach at the same time. Here is a clear guide on how to reduce CPM while increasing reach in Amazon DSP.
Targeting audiences that are too narrow often leads to higher CPM because competition for limited impressions is intense. Expanding targeting helps reduce costs and reach more users.
You can work with Amazon in market segments lifestyle categories and contextual targeting to connect with wider audiences. Lookalike modeling is another way to find new users that behave similarly to your existing customers. By moving beyond small bottom funnel audiences you can expand delivery at lower costs.
Bidding directly impacts both cost and reach.
Dynamic CPM bidding in Amazon DSP allows the platform to adjust bids depending on competition. By setting moderate bids you can ensure steady delivery then lower them gradually while monitoring win rates. Different audience groups can also be placed in separate campaigns so each one receives an appropriate bid level.
Relying only on premium inventory such as Fire TV can raise CPM because supply is limited. Combining premium placements with open exchange inventory gives your campaigns more scale at lower cost.
Test multiple formats including display video and OTT. This diversity improves reach while balancing cost efficiency.
When frequency caps are too strict you may be limiting delivery. On the other hand no limits can waste impressions. The right balance is to allow more users to see your ads while avoiding ad fatigue. Testing slightly higher caps can help spread impressions across a wider audience without inflating CPM.
Excessive filters such as limiting age range income level device type or small geographies restrict the available pool of impressions. By simplifying your targeting and focusing only on the most relevant attributes you give Amazon DSP more flexibility to deliver ads at scale with lower CPM.
Inventory prices change throughout the day. Running campaigns during hours with less competition can reduce CPM while maintaining visibility. Analysing reports in Amazon DSP shows when audiences are active and when inventory is less expensive. Delivering ads in these time windows helps balance cost and reach.
Amazon DSP rewards engaging ads with better delivery and efficiency. If your creative resonates with the audience your CTR increases and algorithms often deliver impressions at lower cost.
Rotate creatives often refresh designs and use clear calls to action. Dynamic product ads that match user interest can also increase performance and lead to stronger reach with lower CPM.
If two campaigns target the same users you might be competing against yourself. This overlap inflates CPM and reduces efficiency. Audience overlap reports in Amazon DSP help you identify and fix this issue. By refining segmentation you reduce wasted spend and open more room for incremental reach.
Budgets that are too small limit the reach of your campaigns. Budgets that are too aggressive drive CPM higher due to over competition. The best approach is to scale gradually while analysing the impact on delivery and costs.
To reduce CPM while increasing reach in Amazon DSP you need to expand audiences adopt smarter bidding diversify inventory and optimise creatives. It is about efficiency as well as scale so that every impression works harder and every budget is used effectively.
At DWAO we help brands optimise Amazon DSP campaigns by combining deep audience insights with proven strategies that lower CPM and grow reach. From planning to execution and reporting our expertise ensures that your media investments deliver measurable growth.
If you want to understand clearly how to reduce CPM while increasing reach in Amazon DSP and create a scalable strategy DWAO is here to guide you.