A Guide to the Amazon Demand-Side Platform (DSP)

If you've been running Amazon PPC campaigns for a while, you've likely hit a ceiling. Your sponsored product ads are performing well, your ACoS is optimized, and yet you're still missing a massive chunk of potential customers who aren't actively searching for your product.  

That's where Amazon DSP comes in.  

Amazon Demand-Side Platform (DSP) is a programmatic advertising solution that lets you reach audiences both on and off Amazon—whether they're browsing product pages, reading reviews, streaming content, or scrolling through third-party websites. Unlike traditional PPC, which targets active shoppers with high purchase intent, DSP helps you build awareness, retarget lost customers, and move buyers through the entire sales funnel.  

This guide will walk you through what Amazon DSP is, how it differs from PPC, and how you can use it to unlock advanced audience targeting and full-funnel advertising strategies.  

What is Amazon DSP?  

Amazon DSP is a demand-side platform that enables advertisers to programmatically buy display, video, and audio ads across Amazon-owned properties (such as Amazon.com, IMDb, Twitch, and Freevee) and thousands of third-party sites and apps.  

Unlike Sponsored Products or Sponsored Brands, which appear in search results and product pages, DSP ads are designed to reach customers at different stages of the buying journey. You can target people who have viewed your products but didn't purchase, shoppers interested in competitor products, or entirely new audiences based on lifestyle, demographics, and shopping behavior.  

Amazon DSP operates on a cost-per-thousand-impressions (CPM) model rather than cost-per-click (CPC). This makes it ideal for brand awareness campaigns where the goal is visibility, not immediate conversions.  

Amazon DSP vs PPC: Key Differences  

Many sellers assume DSP is just another ad type within Amazon Advertising. It's not. Here's how it stacks up against traditional PPC:  

Targeting Capabilities  

PPC relies on keyword targeting. You bid on search terms and show ads to people actively looking for products like yours. DSP, on the other hand, uses audience targeting. You can reach shoppers based on their browsing history, purchase behavior, demographics,  

interests, and even life events.  

Ad Placement  

Sponsored ads appear on Amazon search results and product detail pages. DSP ads run on Amazon properties like Fire TV and Twitch, as well as on premium third-party websites and apps through Amazon's Publisher Services network.  

Campaign Objectives  

PPC is bottom-of-funnel. It captures demand that already exists. DSP works across the whole funnel—building awareness at the top, nurturing consideration in the middle, and driving conversions at the bottom through retargeting.  

Pricing Model  

PPC uses CPC bidding. You pay when someone clicks your ad. DSP uses CPM bidding, meaning you pay per 1,000 impressions. This shift in pricing reflects DSP's focus on reach and frequency over immediate clicks.  

Access and Management  

Anyone can set up a PPC campaign through Amazon Seller Central or Advertising Console. DSP requires either a managed service (Amazon handles your campaigns for a fee and minimum spend) or self-service access, which typically requires a larger ad budget and more sophisticated campaign management.  

Benefits of Amazon DSP  

DSP isn't for every brand, but if you're ready to scale beyond search ads, it offers several powerful advantages.  

Advanced Audience Targeting  

Amazon's first-party data is unmatched. DSP lets you tap into shopping signals, viewing behavior, and purchase history to build highly specific audience segments. You can target people who bought from competitors, shoppers who viewed your product but didn't convert, or lookalike audiences based on your best customers.  

Retargeting Capabilities  

One of DSP's most valuable features is retargeting. You can serve ads to people who visited your product page, added items to their cart, or even purchased from you in the past. This keeps your brand top-of-mind and brings shoppers back to complete their purchase.  

Full-Funnel Strategy  

With DSP, you're not limited to bottom-of-funnel tactics. You can run awareness campaigns to introduce your brand, consideration campaigns to educate potential buyers, and conversion campaigns to close the sale. This holistic approach helps you build a sustainable customer acquisition engine.  

On and Off Amazon Reach  

DSP extends your reach beyond Amazon's marketplace. Your ads can appear on premium sites like CNN, ESPN, and BuzzFeed, as well as apps and streaming services. This multi-channel presence helps reinforce your message and reach customers wherever they spend time online.  

Detailed Reporting and Insights  

DSP provides granular reporting on impressions, click-through rates, conversions, and return on ad spend (ROAS). You can also access Amazon Marketing Cloud (AMC) to analyze cross-channel performance and understand how DSP campaigns influence the entire customer journey.  

How to Use Amazon DSP: Campaign Strategies  

Getting started with DSP requires a shift in mindset. You're no longer optimizing for clicks and conversions alone—you're building a long-term relationship with your audience. Here are some proven strategies to maximize your DSP campaigns.  

Retargeting Campaigns  

Start with retargeting. This is the lowest-hanging fruit and often delivers the highest ROAS. Create audiences based on:  

• Product page visitors: People who viewed your listings but didn't buy.  

• Cart abandoners: Shoppers who added items but didn't check out.  

• Past purchasers: Customers who bought from you and might be ready to repurchase.  

Serve these audiences display or video ads that remind them why they were interested in the first place. Include strong calls to action and highlight promotions or new arrivals to drive urgency.  

Competitor Targeting  

Amazon DSP allows you to target shoppers who have viewed or purchased products from your competitors. This is a powerful way to steal market share and introduce your brand to high-intent buyers.  

Build audience segments around competitor ASINs and serve ads that highlight your unique value proposition—whether that's better pricing, superior features, or faster shipping.  

Lookalike Audiences  

If you have a solid base of existing customers, use lookalike targeting to find new shoppers with similar behaviors and characteristics. Amazon analyzes your customer data and identifies other users who are likely to be interested in your products.  

This strategy is ideal for upper-funnel campaigns aimed at brand awareness and customer acquisition.  

Lifestyle and Interest Targeting  

DSP lets you target audiences based on interests, hobbies, and lifestyle attributes. For example, if you sell fitness equipment, you can reach people interested in health and wellness, yoga, or home workouts.  

This type of targeting is especially useful for new product launches or entering new markets where keyword data is limited.  

Seasonal and Event-Based Campaigns  

Use DSP to capitalize on key shopping events such as Prime Day, Black Friday, or the back-to-school season. Build custom audiences around these events and tailor your creative to match the occasion.  

You can also target life events (like moving, having a baby, or getting married) to reach customers when they're most likely to need your products.  

Targeting Upper Funnel on Amazon  

Most sellers focus on bottom-of-funnel tactics because they drive immediate sales. But if you want to build a lasting brand, you need to invest in the upper funnel.  

Upper-funnel campaigns are about awareness and consideration. They introduce your brand to new audiences who may not yet be actively searching for your product. DSP is the perfect tool for this.  

Run video ads on Fire TV or Twitch to showcase your product in action. Use display ads to highlight customer reviews, awards, or unique selling points. The goal isn't to drive an immediate purchase—it's to plant a seed so that when the customer is ready to buy, your brand is top-of-mind.  

Track metrics such as reach, frequency, and brand lift to gauge the success of upper-funnel campaigns. Over time, these efforts will feed into your mid- and lower-funnel strategies, creating a seamless customer journey.  

DSP vs Sponsored Display: Which Should You Choose?  

Amazon offers two display advertising options: DSP and Sponsored Display. They're often confused, but they serve different purposes.  

Sponsored Display is a self-service option available to all sellers. It offers basic retargeting and audience targeting, with ads appearing on Amazon and a limited selection of third-party sites. It's easier to set up and requires a smaller budget.  

DSP is more advanced. It offers deeper audience segmentation, more ad placements, and greater control over campaign optimization. It's designed for brands with larger budgets and more sophisticated advertising goals.  

If you're new to display advertising, start with Sponsored Display. Once you've mastered the basics and are ready to scale, upgrade to DSP for more reach and flexibility. 

Getting Started with Amazon DSP  

Amazon DSP isn't plug-and-play. It requires planning, budget, and expertise. Here's how to get started:  

Choose Your Access Level  

Decide whether you want managed service or self-service. Managed service means Amazon's team runs your campaigns (with a higher minimum spend). Self-service gives you complete control but requires more hands-on management.  

Set Clear Goals  

Define what you want to achieve. Are you focused on brand awareness, customer acquisition, or retargeting? Your goals will shape your audience strategy, creative, and bidding approach.  

Build Your Audiences  

Use Amazon's audience builder to create segments based on shopping behavior, demographics, and interests. Layer multiple targeting criteria to refine your reach.  

Develop Compelling Creative  

DSP campaigns live or die on creative. Invest in high-quality images, videos, and copy that resonate with your target audience. Test different formats and messages to determine which performs best.  

Monitor and Optimize  

Track your campaigns closely. Adjust bids, refresh creative, and refine your audiences based on performance data. DSP is not a set-it-and-forget-it channel—it requires ongoing optimization.  

Why DSP Matters for Full-Funnel Advertising  

PPC is essential, but it's not enough. If you're only targeting customers at the point of purchase, you're leaving money on the table.  

Amazon DSP fills the gap. It lets you build awareness, nurture interest, and close the sale—all within a single platform. By combining DSP with your existing PPC strategy, you create a full-funnel advertising engine that drives sustainable growth.  

The brands winning on Amazon aren't just optimizing for clicks. They're building relationships, generating demand, and staying top of mind throughout the customer journey. DSP is the tool that makes that possible.  

If you're ready to move beyond PPC and unlock the full potential of Amazon advertising, it's time to explore DSP. Start small, test your strategies, and scale what works. The results will speak for themselves.