Amazon DSP Basics: What, Why & How in 2025

By Narasimha Pratap · about 3 min read

Amazon's Demand-Side Platform (DSP) is a powerful way to reach and convert audiences on and off Amazon. This guide covers what DSP is, why it matters, and how to use it inside a modern media mix.

Why Amazon DSP matters in 2025

• 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 focused on mid-to-bottom funnel, DSP supports the full customer journey.

• Awareness: Video and 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

• Audience targeting: Based on shopping behavior, demographics, or lifestyle.
• Contextual targeting: Display ads based on content relevance.
• Device and placement targeting: Target mobile, desktop, or OTT placements.
• Retargeting: Re-engage users who viewed your products or similar ones.

Amazon DSP vs Sponsored Ads

DSP is built for broader awareness and off-Amazon reach, while Sponsored Ads focus on on-Amazon visibility and conversion.

• Use DSP when: You want brand awareness, video/OTT, and off-Amazon reach.
• Use Sponsored Ads when: You want direct product visibility and mid-to-bottom funnel conversion.

Getting started with Amazon DSP

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

Key metrics to track

• Impressions and reach
• Detail page view rate (DPVR)
• New-to-brand (NTB) sales
• ROAS

Final thoughts: Amazon DSP is more than a buzzword. With advanced targeting, off-Amazon reach, and video capabilities, it can unlock new levels of growth.