Impressions to Conversions

A Deep Dive into Amazon DSP Advertising

In the ever-evolving world of e-commerce, as an Amazon DSP (Demand-Side Platform) Agency, we’ve realized that visibility is power. With millions of products vying for customer attention on Amazon, businesses must go beyond organic strategies and basic sponsored ads to stand out.

That’s where Amazon DSP and Display Advertising come in—tools designed to help you reach highly targeted audiences both on and off Amazon.

In this article, we’ll break down everything you need to know about Amazon DSP and Display Advertising. Read on.

What is Amazon DSP?

Amazon DSP (Demand-Side Platform) is Amazon’s programmatic advertising solution that allows brands to buy display, video, and audio ads at scale. These ads can appear both on Amazon and across the web, including on Amazon-owned sites like IMDb, Twitch, and Fire TV, as well as third-party websites and apps.

Unlike sponsored product ads, which appear only within Amazon’s search and product listings, DSP reaches users wherever they are, using rich shopper data to target users with laser precision.

Learn more on Amazon DSP Explained: How to Run Retargeting Ads That Convert

How Does Amazon DSP Work?

Amazon DSP operates like any other demand-side platform, but with one major advantage: Amazon’s first-party shopper data. This data provides deep insights into browsing, purchase, and behavioral patterns of millions of Amazon users.

Here’s how a typical DSP campaign works:

Audience Targeting: You select audiences based on demographics, shopping behavior, or past purchases.
Ad Placement: Amazon places your display or video ads across its ecosystem and partner sites.
Real-Time Bidding: Amazon DSP uses real-time bidding (RTB) to buy ad space that matches your criteria automatically.
Performance Optimization: Algorithms optimize ad placements for conversions, viewability, and ROI.

Types of Amazon DSP Ads

Amazon DSP supports multiple formats to cater to different marketing goals:
1. Display Ads
These are banner ads that appear on Amazon product pages, apps, or third-party websites. They’re ideal for:

Retargeting shoppers
Promoting new products
Creating brand awareness

2. Video Ads

These ads play before or during content on Amazon Prime Video, Fire TV, or third-party platforms. Use cases include:

Brand storytelling
Launching product lines
Engaging new customers

3. Audio Ads

Audio ads are played on Amazon Music’s free tier. These are best for:

Brand recall
Seasonal promotions
Driving awareness

Benefits of Using Amazon DSP

1. Access to Exclusive Amazon Audiences

Amazon’s wealth of data on shopper behavior is unmatched. With DSP, advertisers can target:

Lifestyle segments: for example, fitness enthusiasts, tech lovers
In-market shoppers: for example, people currently shopping for laptops
Lookalike audiences: for example, audiences similar to your best customers

2. Cross-Channel Reach

Unlike traditional Amazon ads, DSP ads go beyond Amazon’s platform, allowing you to reach potential customers on:

Mobile apps
News websites
Social platforms
Amazon devices

3. Retargeting Capabilities

With DSP, you can retarget users who:

Viewed your product but didn’t purchase
Abandoned their cart
Previously purchased from you

4. Brand Lift & Awareness

Even if a customer doesn’t click your ad, seeing it repeatedly across platforms boosts brand recall and primes them for future purchases.

5. Detailed Reporting & Analytics

Track everything from impressions and click-through rates (CTR) to return on ad spend (ROAS) and new-to-brand metrics.

Amazon DSP vs. Sponsored Display: What's the Difference?

Many sellers confuse Amazon DSP with Sponsored Display, but they serve different purposes.

Feature	Amazon DSP	Sponsored Display
Access	Requires agency/Amazon-managed service	Available in Seller Central
Targeting	Advanced (Audience, contextual, lifestyle)	Limited
Ad Formats	Display, Video, Audio	Display only
Reach	On and Off Amazon	Mostly on Amazon
Cost	Higher – Minimum budgets apply	Lower entry barrier

Bottom line: Sponsored Display is great for beginners. Amazon DSP is best for brands with larger budgets aiming for scalable, data-driven growth.

Who Should Use Amazon DSP?

Amazon DSP is best suited for:

Established brands seeking to scale
Vendors and sellers with a wide product range
Advertisers focused on branding
Businesses targeting high-LTV (lifetime value) customers

Amazon DSP is also a smart investment for off-Amazon brands looking to retarget Amazon shoppers or drive awareness, even if they don’t sell on Amazon.

Creating a Successful Amazon DSP Strategy as an Amazon DSP Agency.

Here’s what we do:
1. We Set Clear Goals

We find out what our clients are focused on — brand awareness, product consideration, or conversions? Accordingly, we align their campaign with:

Awareness KPIs – impressions, reach, viewability
Consideration KPIs – CTR, video views
Conversion KPIs – sales, ROAS, new-to-brand

2. We Build the Right Audience Segments
We leverage Amazon’s data to create refined segments:

Lifestyle segments
Remarketing audiences
Custom audiences based on pixel data or CRM uploads

3. We Create High-Quality Creative Assets

As an experienced Amazon DSP Agency, we know that great ads require:

Clear messaging
Brand consistency
Strong calls to action (CTAs)
Mobile-friendly formats

Therefore, we utilize a combination of static banners, rich media, and videos to optimize engagement.

4. We Use Retargeting Effectively

We retarget users who:

Viewed our clients’ product pages
Abandoned carts
Engaged with our clients’ video ads

This dramatically improves conversion rates and ROI.

5. We Test & Optimize

We split-test:

Creatives
Landing pages
Bidding strategies
Audience segments

Use Amazon’s real-time analytics to tweak our clients’ campaigns continuously.

Amazon DSP Pricing & Budgeting

Amazon DSP is typically suited for advertisers with mid to large-sized budgets.

Self-service: $10,000/month minimum budget
Managed service (via Amazon): $35,000+ starting budget

Prices vary based on targeting complexity, ad format, and bidding competition. Cost per thousand impressions (CPM) is the common pricing model.

Best Practices for Amazon DSP Campaigns

As an Amazon DSP Agency working in this field for over 13 years, we advise our clients to:

Start with retargeting for faster ROI.
Combine DSP with Sponsored Ads for full-funnel coverage.
Use frequency capping to avoid ad fatigue.
Leverage custom creatives for different audience segments.
Invest in video content — it boosts engagement dramatically.

Real-Life Example: DSP in Action

For instance, we have a client in the pet products field. As an Amazon DSP Agency, we:

Retargeted customers who viewed the product but didn’t buy
Showed ads to shoppers buying competitor brands
Delivered video ads on Fire TV to pet owners
Reached pet owners browsing pet care articles on third-party websites

The result? The client stayed top-of-mind, even outside the Amazon ecosystem, and drove more conversions.

Amazon DSP is a powerful tool that goes beyond the traditional boundaries of e-commerce advertising. With access to unparalleled shopper data, cross-channel ad placements, and precision targeting, it offers a full-funnel solution for modern brands.

Be it retargeting high-intent buyers, building awareness with a new audience, or expanding your reach beyond Amazon, DSP is the way forward. It may require a higher investment, but for those ready to scale, the returns can be well worth it.

If you’re serious about elevating your brand visibility and boosting ROI, Amazon DSP should be a key part of your advertising strategy.

Your competitors are already reaching your customers beyond Amazon—don’t get left behind.

If navigating DSP sounds complex, don’t worry. We’re here to help.