Amazon DSP Basics: What, Why & How in 2025

Amazon’s Demand-Side Platform (DSP) is revolutionizing the way advertisers reach and convert audiences. Whether you’re a seasoned Amazon seller or just exploring upper-funnel strategies, this guide will walk you through the essentials of Amazon DSP—its purpose, how it works, targeting types, and how to integrate it into your media mix.

Why Amazon DSP Matters in 2025

The advertising landscape is rapidly evolving. With privacy updates limiting third-party tracking and competition increasing across marketplaces, Amazon DSP has emerged as a powerful way to stay ahead.

✅ Reach high-intent shoppers on and off Amazon
✅ Run video, display, and OTT ads using Amazon’s first-party data
✅ Build brand awareness and retarget across the open web

Understanding the Amazon DSP Funnel

Unlike Sponsored Ads which focus on mid-to-bottom funnel, Amazon DSP covers the entire customer journey — including awareness, consideration, purchase, and even loyalty.

Awareness: Video & OTT ads reach users unfamiliar with your brand
Consideration: Display ads shown on shopping-related sites
Purchase: Retargeting ads for cart abandoners or product viewers
Loyalty: Re-engagement campaigns for past customers

Key DSP Targeting Types

One of the core strengths of Amazon DSP lies in its precise targeting options. Unlike keyword targeting in Sponsored Ads, DSP lets you reach audiences through:

Audience Targeting: Based on shopping behavior, demographics, or lifestyle
Contextual Targeting: Display ads based on content relevance
Device & Placement Targeting: Target based on mobile, desktop, or even OTT devices
Retargeting: Re-engage users who viewed your products or similar ones

Amazon DSP vs Sponsored Ads

While both DSP and Sponsored Ads are part of Amazon’s advertising ecosystem, their use cases, formats, and data access vary widely.

When to Use DSP:

✅ You want to grow brand awareness
✅ You want to run video or OTT campaigns
✅ You want to target audiences across Amazon-owned sites and external publishers

When to Use Sponsored Ads:

✅ You want direct product visibility on Amazon search
✅ You’re focused on mid-to-bottom funnel conversion
✅ You rely on keyword or ASIN targeting

Getting Started with Amazon DSP

You can run Amazon DSP campaigns either through a managed-service via Amazon (minimums apply) or via approved partners (agencies or tech providers). Here’s how to start:

Step 1: Choose a DSP partner or apply to Amazon DSP
Step 2: Define audience, creatives, and budget
Step 3: Launch campaign and monitor performance
Step 4: Optimize based on reach, frequency, and ROAS

Key Metrics to Track in DSP

Impressions & Reach: Gauge how wide your campaign is scaling
Detail Page View Rate (DPVR): How many ad viewers check your product page
New-to-Brand (NTB) Sales: Critical to measure awareness lift
Return on Ad Spend (ROAS): Efficiency of your DSP investment

Final Thoughts

Amazon DSP is more than a buzzword—it’s a vital tool to future-proof your brand’s presence and performance. By leveraging advanced targeting, off-Amazon reach, and video capabilities, you can stay ahead of competitors and unlock new levels of growth.

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