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What is Amazon DSP and when should I use it?

Richard

Co-Founder at Amersify

Introduction

Amazon DSP (Demand-Side Platform) is one of the most powerful yet misunderstood parts of Amazon’s advertising ecosystem.

While Sponsored Ads target shoppers actively searching on Amazon, DSP goes beyond — reaching audiences across Amazon, its apps, and thousands of third-party sites.

In 2025, DSP is no longer reserved for large vendors. It’s accessible to any brand wanting to run programmatic display, video, or streaming TV campaigns using Amazon’s first-party audience data.

This guide explains what Amazon DSP is, how it works, and when to use it within your wider advertising strategy.

1. What Amazon DSP Actually Is

Amazon DSP is a programmatic advertising platform that allows brands to buy ad placements automatically using audience signals rather than keywords.

It uses Amazon’s first-party data — purchase history, search intent, content engagement, and behavioural trends — to serve ads to the right shopper at the right time across:

Amazon retail sites (Amazon.co.uk, Amazon.com, etc.)
Amazon-owned properties (IMDb, Twitch, Freevee, Fire TV, Amazon Music)
Third-party websites and apps using Amazon’s advertising exchange

DSP campaigns can run display, video, and streaming TV formats with measurable attribution back to sales on or off Amazon.

2. Amazon DSP vs Sponsored Ads

Feature	Sponsored Ads (SP, SB, SD)	Amazon DSP
Targeting Method	Keyword / ASIN based	Audience & behaviour based
Placement	On Amazon only	On & off Amazon (web, apps, streaming)
Formats	Search, product, display	Display, video, streaming TV, audio
Buying Model	CPC	CPM (cost per thousand impressions)
Audience Data	Search intent	Purchase & behavioural data
Control Level	Self-serve via Seller Central	DSP console or managed service
Use Case	Conversion / bottom-funnel	Awareness, consideration, retargeting

Tip: Use Sponsored Ads to capture demand and DSP to create demand. Together they build the complete funnel.

3. How DSP Targeting Works

Amazon DSP’s real power is its audience segmentation.

It allows you to build precise audience sets based on:

Audience Type	Example Use Case
In-Market Audiences	Reach shoppers currently browsing within your category (for example, “Pet Supplements”)
Lifestyle Audiences	Reach customers with specific habits or interests (for example, “Fitness Enthusiasts”)
Remarketing Audiences	Re-engage people who viewed your product or similar items
Purchase-Based Audiences	Target shoppers who have previously bought in your niche
Lookalike Audiences	Find new customers similar to your converters
Advertiser Audiences	Upload your own CRM or pixel data for targeting

Advanced Insight: DSP now integrates with Amazon Marketing Cloud (AMC) for path-to-purchase insights and cross-channel exposure measurement — not just last-click conversions.

New in 2025: Predictive Audiences

In mid-2025, Amazon introduced Predictive Audiences powered by AMC data. These machine learning models identify potential customers most likely to convert, even if they haven’t shown direct intent signals yet. Predictive Audiences accelerate prospecting by automatically expanding reach to high-propensity shoppers across Amazon and third-party inventory.

4. Campaign Types and Ad Formats

Display Ads

Static or dynamic banners appearing across Amazon and partner sites.

Ideal for retargeting or brand awareness at scale, available in standard, responsive, and dynamic creative formats.

Video Ads

Run on Amazon properties, Twitch, IMDb, Fire TV, and mobile apps.

Support 6- to 30-second video spots; 15 seconds typically drives the best recall and completion rates.

Can link directly to product pages or your Brand Store.

Streaming TV Ads

Full-screen, non-skippable video ads shown across Freevee, Twitch, Fire TV, and Prime Video’s ad-supported tier (rolled out in 2025).

Best for brand storytelling with measurable reach and the ability to retarget warm audiences later via DSP or Sponsored Display.

Audio Ads

Short ad placements within Amazon Music’s ad-supported experience.

Work best for awareness and frequency reinforcement alongside visual campaigns.

Creative Builder DSP Integration (New for 2025)

Amazon’s Creative Builder, now integrated with DSP, simplifies the production of display and video creatives.

It enables advertisers to test multiple headlines, calls-to-action, and image variations directly within the DSP console — aligning with Sponsored Ads workflows for consistent creative management.

5. Measurement and Attribution

Amazon DSP connects upper- and lower-funnel performance through advanced metrics:

Omnichannel Metrics (OCM): Measures online and offline sales impact.
Amazon Marketing Cloud (AMC): Provides multi-touch attribution, audience refinement, and deduplication analysis.
New-to-Brand (NTB): Measures how many first-time customers were acquired.
Total Return on Ad Spend (TROAS): Evaluates the combined impact of DSP and Sponsored Ads.

Tip: When running DSP and Sponsored Ads together, use AMC insights to remove overlap and prevent double-counting conversions.

6. When to Use Amazon DSP

Use DSP when you want to:

Build brand awareness beyond Amazon search.
Retarget shoppers who viewed but didn’t purchase your products.
Launch new categories or premium products needing top-funnel exposure.
Measure incrementality across channels (search, video, display).
Expand globally — DSP operates across all major Amazon marketplaces.

Typical milestones before using DSP:

You’re already running Sponsored Ads efficiently.
You have at least £5,000–£10,000 per month to test and scale.
You have strong creative assets (video or display).

7. How to Access DSP

There are two routes:

Self-Service DSP – For experienced advertisers or agencies with direct platform access.
Managed-Service DSP – Run through Amazon Ads or partnered agencies (typically £10,000+ monthly minimum).

Amersify uses the self-service model, offering full transparency over spend, audiences, and optimisation — with no hidden management layers.

8. How DSP and Sponsored Ads Work Together

Stage	Goal	Ad Format
Top-Funnel (Awareness)	Create new demand	DSP Display, Video, Streaming TV
Mid-Funnel (Consideration)	Re-engage interested audiences	DSP Remarketing + Sponsored Display
Bottom-Funnel (Conversion)	Convert active shoppers	Sponsored Products + Sponsored Brands

Tip: Retarget DSP audiences within Sponsored Display campaigns for maximum efficiency — it closes the loop between programmatic reach and direct conversion.

9. Common Pitfalls to Avoid

Avoid launching DSP before refining Sponsored Ads performance; broad top-funnel spend without conversions can distort results.

Avoid using identical creatives for every audience segment; tailor variations to funnel stage.

Avoid ignoring frequency caps, which can cause ad fatigue and wasted impressions.

Avoid relying solely on ROAS; DSP performance is best measured through reach, NTB growth, and incrementality.

FAQs

Is DSP only for big brands?

No. The self-service model now allows access to all scales of advertisers ready to grow.

Can I track off-Amazon conversions?

Yes. Omnichannel Metrics measures both on- and off-Amazon sales with consistent attribution.

Do I need Brand Registry?

No. DSP runs independently of Seller Central or Brand Registry access.

Can I use DSP without creative assets?

You can, but it’s not recommended. High-quality creative drives around 70 percent of performance outcomes, especially for video-based formats.

Summary

Amazon DSP allows brands to transform Amazon data into meaningful, measurable audience reach. It extends beyond search and product ads, influencing the entire shopper journey from awareness through conversion.

By combining DSP with Sponsored Products, Brands, and Display, you create a performance ecosystem that not only drives sales but also builds consistent brand equity.

At Amersify, we bridge the gap between programmatic advertising and retail performance — ensuring every impression serves a measurable purpose.