Amazon DSP (Demand-Side Platform) is one of the most powerful – and most misunderstood – advertising tools in the Amazon ecosystem. While Sponsored Products and Sponsored Brands dominate most sellers ad strategies, Amazon DSP operates at an entirely different level: audience-first, off-Amazon reach, and full-funnel impact.
This guide breaks down how Amazon DSP actually works, who should use it, what makes it different from standard Amazon ads, and how US-based brands and agencies are using it to drive incremental growth – not just more clicks.
Whether you’re a growing brand, an established Amazon seller, or an agency managing large ad budgets, this guide is designed to give you practical clarity and strategic depth, not surface-level summaries.
What Is Amazon DSP?
Amazon DSP is Amazon’s programmatic advertising platform that allows advertisers to buy display, video, and audio ads both on and off Amazon, using Amazon’s first-party shopping, browsing, and streaming data.
Unlike Sponsored Ads, which are keyword- or product-driven, Amazon DSP is audience-based advertising.
With DSP, you can reach:
- Shoppers who viewed or purchased specific products
- In-market audiences based on real purchase behavior
- Lifestyle and interest-based audiences
- Previous customers (remarketing)
- New-to-brand prospects across the open web
Ads can appear on:
- Amazon-owned properties (Amazon.com, IMDb, Fire TV)
- Amazon Publisher Services sites
- Third-party websites and apps
- Streaming TV (CTV) and video inventory
Key distinction: DSP is about who you reach, not just what they search for.
How Amazon DSP Is Different from Sponsored Ads
Most Amazon advertisers think in terms of keywords and bids. DSP requires a mindset shift.
| Feature | Sponsored Ads | Amazon DSP |
|---|---|---|
| Targeting | Keywords, ASINs | Audiences, behaviors, interests |
| Placement | On Amazon only | On & off Amazon |
| Funnel stage | Mid to lower funnel | Full funnel (awareness → conversion) |
| Attribution | Click-based | View-through + click-through |
| Optimization | Manual + AI | Programmatic, audience-based |
| Minimum spend | Low | Typically higher |
Sponsored ads capture existing demand.
DSP helps you create and influence demand.
That’s why DSP is often used alongside Sponsored Ads – not instead of them.
Who Should Use Amazon DSP?
Amazon DSP isn’t for everyone. It delivers the most value when used by advertisers who meet certain criteria. From our experiences, here are what Swanseaairport think every seller should know:
DSP Is a Strong Fit If You:
- Spend consistently on Amazon advertising
- Sell branded or differentiated products
- Want to grow new-to-brand customers
- Need off-Amazon reach (CTV, web, video)
- Care about incrementality, not just ROAS
- Are launching new products or expanding categories
DSP Is Usually Not Ideal If You:
- Are just starting on Amazon
- Have limited ad budgets
- Sell highly commoditized products with no brand moat
- Can’t support upper-funnel measurement
In short: DSP is a scaling and brand-growth tool, not a beginner ad format.
How Amazon DSP Targeting Actually Works
Amazon’s biggest DSP advantage is deterministic first-party data – real shoppers, real purchases, not modeled guesses.
Core DSP Targeting Options
1. In-Market Audiences
Target shoppers actively researching or purchasing within a category (e.g., “Kitchen Appliances – High Intent”).
Best for:
- Category expansion
- Competitor conquesting
- Mid-funnel campaigns
2. Lifestyle & Interest Audiences
Built from long-term browsing and purchase behavior.
Best for:
- Brand awareness
- Upper-funnel prospecting
3. Product View Remarketing
Reach users who viewed:
- Your products
- Competitor products
- Entire product categories
Best for:
- Conversion recovery
- Price- or feature-sensitive shoppers
4. Purchase-Based Audiences
Target shoppers who purchased:
- Your brand
- Competing brands
- Complementary products
Best for:
- Cross-sells
- Upsells
- Brand switching strategies
5. Contextual Targeting
Ads shown based on page or content relevance.
Best for:
- Brand safety
- Content alignment
Amazon DSP Ad Formats Explained
DSP isn’t one format – it’s a portfolio.
Display Ads
- Static or responsive
- Appear on Amazon and third-party sites
- Strong for remarketing and mid-funnel
Video Ads
- In-stream and out-stream
- High engagement, high CPM
- Ideal for storytelling and launches
Streaming TV (CTV)
- Fire TV, IMDb TV, premium publishers
- No clicks – brand lift and reach focused
- Powerful for awareness and consideration
Audio Ads
- Amazon Music and partner inventory
- Underrated for brand recall
Each format plays a different role in the funnel, and strong DSP strategies use them together – not in isolation.
Budgeting and Cost Expectations (US Market)
Amazon DSP operates on a CPM (cost per thousand impressions) model.
Typical US benchmarks:
- Display: Moderate CPMs
- Video & CTV: Higher CPMs, higher impact
- Remarketing: More efficient than prospecting
There is usually:
- A minimum spend commitment
- Either managed-service or self-service access
- A learning phase before performance stabilizes
Important: DSP success should not be judged purely on last-click ROAS. View-through conversions and assisted impact matter.
How to Measure Success with Amazon DSP
DSP measurement is where many advertisers get stuck.
Key metrics to focus on:
- New-to-brand percentage
- View-through conversions
- Reach and frequency
- Assisted conversion lift
- Incremental sales impact
Advanced advertisers compare:
- DSP-exposed vs non-exposed audiences
- Conversion rates over time
- Brand search lift post-campaign
DSP works best when you pair performance data with strategic analysis, not just dashboard metrics.
Common Amazon DSP Mistakes to Avoid
From real-world campaigns, these are the most frequent issues:
- Treating DSP like Sponsored Products
- Over-optimizing for clicks instead of influence
- Running DSP without Sponsored Ads support
- Using overly broad audiences with no exclusions
- Ignoring frequency caps
- Shutting down campaigns too early
DSP rewards patience, structure, and testing – not constant micro-optimizations.
How Amazon DSP Fits Into a Full Amazon Growth Strategy
The most effective brands use DSP as part of an integrated system:
- Sponsored Products capture high-intent demand
- Sponsored Brands build visibility
- Sponsored Display handles on-Amazon remarketing
- Amazon DSP expands reach and drives incrementality
DSP doesn’t replace Sponsored Ads – it amplifies them.
Final Thoughts: Is Amazon DSP Worth It?
Amazon DSP isn’t about chasing cheap clicks. It’s about:
- Reaching the right shoppers
- Influencing decisions earlier
- Building durable brand demand
- Scaling beyond Amazon’s search box
For US brands serious about long-term Amazon growth, DSP is no longer optional – it’s a competitive advantage when used correctly.
If you’re willing to think beyond keywords and short-term ROAS, Amazon DSP offers one of the most sophisticated advertising ecosystems available in ecommerce today.
Frequently Asked Questions
