Amazon Demand-Side Platform (DSP) is a powerhouse for performance and precision. If you’re a brand that needs more targeted audience exposure or need to scale your campaigns occasionally off and on Amazon, DSP has the tools, data, and access to assist you in getting there. Here, we dissect what Amazon DSP is, how it works, and how brands can maximise its full capabilities to scale efficaciously across the marketing funnel.
What is Amazon DSP?
Amazon DSP is a programmatic ad solution through which brands can purchase display, audio, and video ads on Amazon-owned sites such as Amazon.com, IMDb, Twitch, and Prime Video, as well as access to thousands of third-party websites and apps via Amazon’s network of publishing partners. With access to Amazon’s first-party shopper data, advertisers can target high-intent audiences with high accuracy.
How Does Amazon DSP Work?
Amazon DSP operates through real-time bidding, where ad impressions are sold and purchased within milliseconds. When the user opens a site or an app, the DSP analyses the available ad inventory and bids on it to ensure the ad is shown to the most relevant audience. This automated process relies on advanced algorithms and data science to maximise ad placement and effectiveness.
Amazon DSP vs. Sponsored Display
While both are part of Amazon’s advertising suite, there are key differences:
| Feature | Amazon DSP | Sponsored Display |
|---|---|---|
| Model | CPM | CPC |
| Ad Types | Display, Video, Audio, Streaming | Display only |
| Reach | On + off Amazon | Mostly on Amazon |
| Audience Data | Amazon + 3rd party | Primarily Amazon |
| Control | Advanced segmentation, A/B testing, domain targeting | Basic targeting options |
Whereas Sponsored Display works best for basic, on-Amazon campaigns with fewer targeting requirements, Amazon DSP ads provide a much more robust and flexible option for brands that need to scale with advanced targeting, wider reach, and end-to-end influence. It ultimately comes down to your objectives, budget, and level of control desired.
Types of Ads You Can Run Through Amazon DSP
Amazon DSP offers a wide variety of ad formats to help you reach your audience effectively, including:
- Display ads
- Online video
- Streaming TV
- Audio ads
- Custom image creatives
- Responsive ecommerce creatives
This multiformat approach enables advertisers to connect with users across devices and content types, from their Fire TV in the living room to their mobile browser on the go.
Why Use Amazon DSP?
1. Comprehensive Audience Targeting
Amazon DSP allows advertisers to target users based on:
- Demographics
- Geography and ZIP code
- In-market and lifestyle segments
- Device type (mobile vs. desktop)
- Time of day and day of the week
You can also include or exclude specific domains, manage ad placements, and run A/B tests — features that go beyond what’s available in Sponsored Products or Sponsored Brand ads.
2. Reach Across the Entire Web
With DSP, your ads aren’t limited to Amazon. You can reach your audience in the following spaces:
- Amazon properties (Prime Video, Amazon Music, Twitch)
- Amazon Fresh kiosks
- Fire TV, Kindle, and Alexa devices
- Premium third-party sites via Amazon Publisher Direct and other exchanges
3. Retargeting at Its Finest
DSP allows brands to retarget users who have browsed product listings or added items to their cart but didn’t complete a purchase. This significantly improves conversion rates by re-engaging high-intent shoppers.
Using Amazon DSP to Optimise Your Marketing Funnel
Amazon DSP is a versatile tool that supports each stage of your marketing funnel—from awareness to conversion.
1. Top of Funnel: Brand Awareness
- Streaming TV ads (STV): Delivered through Amazon’s media partnerships, these run before or during premium streaming content.
- Online Video Ads (OLV): Short video placements that build recognition and grab attention on websites and apps.
2. Middle of Funnel: Consideration
- Responsive Ecommerce Creative (REC): Automatically generates ads featuring up to 20 ASINs, served across inventory sources.
- Custom Image Creatives: Use brand-specific layouts and messaging to highlight features and maintain consistency.
3. Bottom of Funnel: Conversion
- High-frequency display ads to re-engage users
- Optimised ad placements based on user behavior
- Targeted messages with CTAs and limited-time offers
Tip: Use ad frequency caps and A/B testing to reduce ad fatigue and identify top-performing creatives.
Who Can Use Amazon DSP?
Amazon DSP is available to both Amazon sellers and non-sellers, including brand advertisers, agencies, and tool providers. It’s accessible in regions like North America, Europe, the Middle East, and Asia Pacific.
Getting Started with Amazon DSP
Advertisers can choose between:
- Self-service: Full control over campaign management
- Managed-service: Includes Amazon’s team support, ideal for those new to programmatic advertising
Is Amazon DSP Right for Your Brand?
Amazon DSP is ideal for:
- Brands with larger ad budgets (managed service often requires a minimum spend)
- Advertisers looking to target audiences off Amazon
- Data-driven brands needing advanced analytics and targeting
- Agencies managing multiple clients who want to consolidate ad efforts
If you’re already succeeding with Sponsored Products or Sponsored Display, DSP is the next logical step to grow your brand’s exposure beyond Amazon’s walls.
Conclusion
Amazon DSP is a powerful ad solution that enables brands to target and engage their audiences efficiently. With Amazon’s wealth of data and programmatic capabilities, advertisers can build custom campaigns that deliver real results. Whether you need to boost brand awareness, re-engage shoppers, or access exclusive inventory, DSP gives you the tools to achieve your goals.
Work With a Certified Amazon DSP Agency
Ready to develop your brand with Amazon DSP? As a certified Amazon DSP agency, Lezzat is here to help you strategize, deploy, and optimise high-performing campaigns that yield real results. Get started with our team.
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