Amazon has become much more than an online marketplace. For brands looking to reach shoppers at different stages of the buying journey, Amazon offers a range of advertising solutions designed to increase visibility, attract new customers, and drive sales. One of the most powerful options available to established brands is Amazon DSP.

But what exactly is Amazon DSP, how does it work, and when should a brand consider using it?

In this guide, we explain What is Amazon DSP, how Amazon DSP advertising works, its key benefits, targeting options, costs, and how working with an experienced Amazon DSP agency can help brands get more from their advertising investment.

What Is Amazon DSP?

Amazon DSP (Demand-Side Platform) is Amazon's programmatic advertising platform that allows advertisers to buy display, video, audio, and other digital advertising placements using automated targeting and bidding.

Unlike traditional Amazon advertising, which primarily focuses on shoppers actively searching for products on Amazon, Amazon DSP can help brands reach relevant audiences both on and off Amazon.

This means advertisers can target shoppers based on signals such as:

• Products they have viewed

• Products they have purchased

• Shopping interests

• Browsing behaviour

• Relevant audience segments

• Previous interactions with a brand

• Similar purchasing patterns

The goal is to reach potential customers with relevant advertising throughout their buying journey.

For example, if a shopper views a particular product but does not purchase it, a brand can use Amazon DSP ads to re-engage that shopper later with relevant messaging.

How Does Amazon DSP Advertising Work?

Amazon DSP uses data and automated technology to help advertisers reach specific audiences at scale.

A typical campaign can work through several stages.

1. Define the Target Audience

The first step is identifying who the campaign should reach. Brands can build audiences around shopping behaviour, interests, demographics, products, and previous interactions.

For example, a sportswear brand might want to reach shoppers interested in fitness products or customers who have previously viewed similar sportswear.

2. Select Advertising Formats

Advertisers can use different creative formats depending on their campaign objectives. These may include display ads, video advertising, and other digital placements.

The appropriate format depends on whether the goal is awareness, consideration, retargeting, or conversion.

3. Set Bidding and Budget Parameters

Amazon DSP uses programmatic buying to help advertisers purchase available advertising impressions. Brands establish campaign budgets and bidding strategies based on their objectives.

4. Reach Relevant Shoppers

Amazon's advertising technology identifies opportunities to show ads to audiences that match the campaign's targeting criteria.

5. Measure Performance

Campaign performance can be evaluated using metrics such as impressions, clicks, conversions, sales, reach, and return on advertising investment.

This data can then be used to optimise targeting, creative assets, placements, and budgets.

Amazon DSP vs Amazon PPC

One common question brands have is how Amazon DSP differs from traditional Amazon PPC advertising.

Amazon PPC solutions such as Sponsored Products and Sponsored Brands are primarily designed to capture demand when shoppers are searching for products on Amazon.

Amazon DSP can operate differently by allowing brands to reach audiences based on shopping behaviour and other signals, including shoppers who may not currently be searching for a specific product.

Here is a simplified comparison:

The two approaches do not necessarily compete with each other. For many brands, combining PPC and DSP can create a more comprehensive Amazon advertising strategy.

Key Benefits of Amazon DSP

Reach Customers Beyond Search

One of the major advantages of Amazon DSP advertising is the ability to reach shoppers beyond traditional keyword searches.

Instead of waiting for someone to search for a product, brands can proactively reach relevant audiences based on their shopping behaviour and interests.

Build Brand Awareness

DSP can be particularly useful for brands that want to introduce themselves to new audiences.

Display and video advertising can help communicate a brand's products, positioning, and value proposition before the customer is ready to purchase.

Retarget Interested Shoppers

Not every shopper purchases during their first interaction with a product.

Amazon DSP can help brands reconnect with shoppers who have previously interacted with relevant products or brand content.

This makes retargeting an important part of many DSP strategies.

Reach New Audiences

Brands can use audience targeting to discover potential customers who have characteristics or shopping behaviours relevant to their products.

This can help expand the customer base instead of relying entirely on existing demand.

Support the Full Customer Journey

Amazon DSP can contribute to different stages of the marketing funnel.

A campaign may introduce a brand to new shoppers, encourage product consideration, and then retarget customers who have already shown purchase intent.

Amazon DSP Targeting Options

Effective targeting is one of the most important elements of an Amazon DSP campaign.

Depending on campaign availability and market, advertisers may use different audience and contextual signals.

In-Market Audiences

These audiences include shoppers who have demonstrated recent interest in particular product categories.

For example, a home fitness brand could target audiences interested in fitness equipment.

Lifestyle Audiences

Lifestyle-based targeting can help brands reach shoppers based on broader interests and shopping patterns.

Product-Based Targeting

Brands can target shoppers based on interactions with specific products or product categories.

This can be useful for competitive targeting and reaching shoppers who are considering similar products.

Retargeting Audiences

Retargeting allows brands to reconnect with people who have previously interacted with their products or brand.

For example, a shopper who viewed a product but did not purchase could potentially be shown a relevant DSP ad later.

Similar Audiences

Brands may also use audience signals to reach shoppers who demonstrate behaviours similar to existing customers or relevant audiences.

The right combination depends on the product, sales cycle, competition, and campaign objective.

What Are Amazon DSP Ads?

Amazon DSP ads can appear in different digital environments and formats, depending on campaign eligibility and targeting.

Common formats include display and video advertising.

Display Ads

Display advertising can help brands promote products, communicate offers, and maintain visibility among relevant shoppers.

Video Ads

Video provides an opportunity to demonstrate products and communicate brand stories in a more engaging format.

For products that require explanation or visual demonstration, video can be particularly valuable.

The creative should always match the audience and campaign objective. An awareness campaign may focus on brand storytelling, while a retargeting campaign may focus more directly on a product and its benefits.

How Much Does Amazon DSP Cost?

There is no single fixed price for Amazon DSP campaigns.

Advertising costs can vary depending on factors such as:

• Target audience

• Market and location

• Campaign objective

• Ad format

• Competition

• Bidding strategy

• Campaign duration

• Available inventory

• Audience size

Brands should therefore avoid judging DSP solely by the cost of individual impressions.

Instead, campaign performance should be evaluated against broader objectives such as incremental sales, new customer acquisition, brand awareness, reach, and return on advertising investment.

A properly managed campaign should continuously analyse performance and adjust targeting and budgets where necessary.

When Should a Brand Use Amazon DSP?

Amazon DSP may be particularly useful for brands that already have an established product catalogue and want to scale their advertising beyond keyword-based campaigns.

It can be valuable when a brand wants to:

• Increase brand awareness

• Reach new audiences

• Retarget product viewers

• Promote a product launch

• Support seasonal campaigns

• Increase repeat purchases

• Defend market share

• Reach shoppers throughout the buying journey

However, DSP is not automatically the right solution for every seller.

Brands should first understand their objectives, audience, product economics, and existing advertising performance before allocating a significant budget.

Why Work With an Amazon DSP Agency?

Managing programmatic advertising requires more than simply launching campaigns.

An experienced Amazon DSP agency can help brands develop a strategy based on their objectives and audience.

Professional Amazon DSP services may include:

• Audience research

• Campaign planning

• DSP campaign setup

• Audience targeting

• Retargeting strategy

• Creative recommendations

• Budget management

• Bid optimisation

• Performance monitoring

• Campaign reporting

• Ongoing optimisation

Working with specialists can also help brands identify inefficient spending and make better use of campaign data.

At eStore Factory, the focus is on building Amazon advertising strategies around measurable business objectives rather than simply increasing ad spend. A structured approach can help brands understand which audiences, products, placements, and campaigns are contributing to growth.

How SellerQi Can Support Amazon Brand Optimisation

Amazon advertising works best when your product listings and brand presence are also properly optimised.

Similar to Brand Registry, there are many brand and product-related optimisation recommendations you can get from SellerQi, which can help you identify opportunities to improve your Amazon presence and support sales growth.

SellerQi can be useful for analysing and improving areas related to Amazon product and brand optimisation. By identifying potential listing and optimisation opportunities, brands can make informed improvements instead of relying only on advertising to drive performance.

For brands investing in Amazon DSP advertising, this broader optimisation approach can be valuable. Advertising can bring more shoppers to your products, but strong product content, positioning, and overall listing quality can help turn that traffic into customers.

Using tools such as SellerQi alongside professional Amazon DSP services allows brands to look at both sides of the growth equation: bringing relevant shoppers to the product and improving the product experience once they arrive.

Best Practices for Amazon DSP Campaigns

To get better results from Amazon DSP, brands should follow a structured optimisation process.

Set Clear Campaign Goals

Define whether the campaign is designed for awareness, consideration, conversions, customer acquisition, or retargeting.

Segment Audiences

Avoid treating every shopper as the same. Create audience segments based on behaviour, interests, and purchase intent.

Test Different Creatives

Experiment with different messaging, images, formats, and calls to action to understand what resonates with your target audience.

Monitor Performance Regularly

Review campaign metrics consistently and identify audiences or placements that are generating strong results.

Optimise Based on Data

DSP campaigns should not be treated as set-and-forget advertising. Budgets, bids, audiences, and creatives may need continuous optimisation.

Combine DSP With Other Amazon Advertising

DSP can complement Sponsored Products, Sponsored Brands, and other Amazon marketing activities. A combined strategy can help brands capture demand while also creating new demand.

Final Thoughts

So, What is Amazon DSP? In simple terms, it is Amazon's programmatic advertising platform that helps brands reach relevant audiences using data-driven targeting across different digital environments.

Unlike advertising strategies that focus primarily on shoppers actively searching for products, Amazon DSP can help brands build awareness, reach new audiences, retarget interested shoppers, and support customers throughout the buying journey.

For brands ready to scale beyond traditional Amazon PPC, Amazon DSP advertising can become an important part of a broader growth strategy.

However, success depends on having the right audience targeting, creative strategy, budget allocation, and ongoing optimisation. Whether you manage campaigns internally or work with an Amazon DSP agency, combining advertising with strong product and brand optimisation can create a more effective Amazon growth strategy.

At eStore Factory, we help brands approach Amazon advertising strategically, combining campaign management with broader marketplace optimisation to support sustainable growth.

FAQs 

1. How does Amazon DSP advertising work?

Amazon DSP advertising uses audience and shopping behaviour data to help brands target relevant customers. Advertisers can use different audience segments, bidding strategies, and creative formats to reach shoppers throughout the buying journey.

2. What are Amazon DSP ads?

Amazon DSP ads are programmatic advertisements that can use display and video formats to reach relevant audiences. They can be used for brand awareness, product consideration, retargeting, and customer acquisition.

3. What is the difference between Amazon DSP and Amazon PPC?

Amazon PPC primarily helps brands capture demand from shoppers actively searching for products, while Amazon DSP focuses more broadly on audience-based advertising, awareness, prospecting, and retargeting.

4. What are the benefits of Amazon DSP?

Amazon DSP can help brands increase awareness, reach new audiences, retarget interested shoppers, support product launches, and engage customers at different stages of the buying journey.

5. How much does Amazon DSP cost?

Amazon DSP costs vary depending on factors such as audience, market, competition, ad format, bidding strategy, and campaign objectives. There is no single fixed cost for every campaign.

6. Do I need an Amazon DSP agency to run campaigns?

Brands can manage advertising internally if they have the required expertise and resources. An Amazon DSP agency can provide campaign strategy, audience targeting, optimisation, reporting, and ongoing management.