Amazon DSP Basics (And Its 5 Awesome Benefits)

Amazon DSP can be used to improve your marketing strat

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Leading firms are looking for ways to differentiate themselves as Amazon becomes more congested and traditional Amazon advertising becomes more expensive. Programmatic advertising is one such strategy. This is the Amazon Demand Side Platform or Amazon DSP.

Advertisers utilize DSP to buy video ads from a marketplace where publishers sell their inventory. DSP, in conjunction with supply-side platforms, enable programmatic advertising. This is the act of using software to purchase and sell ads and then publishing them in a specific context depending on complicated algorithms.

Additionally, Advertisers can use the Amazon DSP to reach out to Amazon customers in a variety of ways. This can include Amazon's website, on the web, and in mobile apps. This implies that advertisers can buy display and video advertisements on Amazon as well as on other Amazon-owned or partnered websites and mobile apps.

Why Amazon DSP?

Amazon DSP is an advertising platform that allows businesses to connect with potential customers at a large scale in a cost-effective and efficient manner. This is accomplished by purchasing display, video, and audio adverts both on and off Amazon through a programmatic approach.

With over hundreds of shopping verticals, Amazon has the largest database of online shoppers at all phases of the customer journey. It's the first stop for shoppers looking for products, comparing pricing, and making purchases.

Furthermore, it has a huge amount of first-party data. To measure performance and successfully maximize ROAS, tapping into it is more important than ever. You're off to a terrific start if your company is already using Amazon's basic Sponsored Ads. Amazon DSP, on the other hand, opens up a world of possibilities for marketers, as it continues to improve its capabilities since its inception in 2018.

The fact that Amazon DSP isn't a pay-per-click service distinguishes it from Amazon Sponsored Display Ads. Instead, it uses a pricing strategy much like Facebook's cost-per-impression model. The amount you pay increases parallel to the number of people who view your ad and whether or not they interact with it.

Another significant difference is that Amazon DSP Ads are based on behavior, whereas Amazon Sponsored Display Ads are based on keyword search. This means your ads are presented to consumers based on purchases made, categories browsed, the detail pages they visited, and other triggers.

Benefits of Amazon DSP

With all that being said, what do you actually gain out of Amazon DSP? Here are 5 reasons to start using DSP.

Greater Insights

In-depth insights regarding your campaigns will be available to you through Amazon's extensive data capabilities before, during, and after they are launched. Key performance indicators such as total sales, add-to-cart rate, product units sold, and so on are available for your review.

You can also gain insight into common concerns for your product category and trends on when shoppers are most active in this category. You may also learn about data on branded searches, repeat purchase rates, as well as data on when shoppers are most active in this category.

Significant Control of Ad Placements

In today's world, using data to establish where an ad might appear is a significant advantage. It will assist you in swiftly determining the shift in the landscape, and you will be able to adjust your strategy accordingly. You can use it to re-align your ad placements or redirect your domain advertisements to reach people who are looking for your goods.

DSP is a key tool for improving brand awareness because it prioritizes top-of-the-funnel commercials. Ad placements outside of the platform are made accessible by Amazon's DSP program. This means that non-Amazon brands can take advantage of this opportunity.

Efficient Audience Reach

Gaining new customers and preserving existing ones is critical to a company's success. It is, however, less expensive to spend your advertising expenditures on retaining existing clients than it is to bring in new ones.

You may increase brand awareness by teaching your customers about your items using Amazon DSP. Potential clients who have purchased or connected with your product or comparable ones in the same category can still be reached and retargeted.

Flexible Spending Plans

Amazon's DSP, as its name implies, makes it easier to purchase and sell digital advertising spots on Amazon and other online media platforms. This program's dynamic CPM pricing strategy encourages advertisers to spend more effectively because Amazon DSP allows them to alter their bid prices.

Additionally, advertisers and ad agencies can bid on audiences using DSP ads. Using this strategy, you can target your products onto customers based on their past purchases, demographics, or preferences. As a result, all advertisers can benefit from Amazon's proprietary audience data by placing advertising on Amazon-owned organizations.

Comparably Less Competition

Compared to search ads and sponsored display ads, DSP advertising is far less competitive. While competition and CPM are still low, you must take advantage of this opportunity to potentially gain a higher return on advertising spend.

Amazon DSP in Deeper Detail

Brands can use Amazon DSP to execute full-funnel marketing. Because PPC is based on search, you can only show ads depending on what keywords customers use in their online searches. They may not even be aware that your brand or product exists at this point, otherwise known as Top of Funnel.

Amazon DSP is relatively unique. The reason being that it allows you to place display advertising in front of people who have already expressed an interest in your product based on their actions. At this stage, they're in the middle or bottom of your funnel, and you're retargeting them. This is something that Amazon PPC has never allowed you to do before.

Because Amazon DSP allows advertisers to segment audiences through different targeting choices, they can reach customers at any step of the marketing funnel.


For this targeted segment, you distinguish audiences based on behavior. The selected audience displays distinct behaviors such as browsing similar products or products in a given category.


Advertisers can reach an audience that buys particular products within a category on a regular basis and may be interested in a new product.


Advertisers can employ contextual audiences to get attention to their brand from those who are actively looking for alternatives in a category.


Advertisers can use Amazon re-marketing audiences based on comparable product views to re-engage audiences that have already indicated an interest in another brand's similar offering.

Audience Lookalike

Advertisers can use existing audiences, such as their own or Amazon audiences, to create a lookalike audience to target new people who have similar shopping habits.

Types of Advertisements for Amazon DSP

Thanks to Amazon DSP, advertisers can leverage and run advertising of various types across numerous platforms and mediums. Here are a few examples that you can use in your marketing approach.

Dynamic ads

Based on your campaign aim, dynamic e-commerce advertisements automatically optimize which content is shown. You might include coupon codes or user reviews in your content to entice customers to check out the product on Amazon. Note that only a product detail page can be linked from a dynamic ad.

Video ads

DSP allows you to run video advertising as part of a display ad or within video content. Through Amazon DSP, you may link your video advertising to a product detail page on Amazon or your own website. You may also take advantage of Amazon's audiences by using Amazon DSP to create video advertising.

Display Banners

To target clients who are in the buying mood, these adverts appear on the purchase confirmation page. However, because you're targeting customers after they've made a purchase, this comes with the disadvantage that they may think they've finished their shopping.

Amazon Over-The-Top ads

These are full-screen, non-clickable, non-skippable adverts. OTT is commercial adverts that can be viewed on Amazon FireTV and Amazon Fire Stick. By displaying your ads in prime placement before or after in-app streaming services, Amazon OTT is a terrific method to improve brand awareness and household penetration. This ad type can be used to target certain Amazon audiences.


The potential of Amazon DSP to dramatically raise ROAS is a testament to its influence, which can transform lesser-known companies into household names if applied strategically.

The programmatic display advertising heavyweights are still Facebook and Google. But Amazon DSP is swiftly gaining ground in the evolving programmatic market and should be a cornerstone of every brand's Amazon advertising strategy. However, for new sellers and smaller firms selling on Amazon, Amazon DSP isn't very useful.

On the other hand, it can give a lot of value to firms that currently have a good ad spend and want to keep growing year after year. This is done by leveraging Amazon's first-party consumer data to attract new customers and keep existing ones. 

DIY and aided service options are available with Amazon DSP. That being said, navigating the platform can be time-consuming and complicated, so it's a good idea to work with a partner that knows how to navigate it.