What is Amazon DSP: Unraveling the Digital Advertising Giant


In recent years, Amazon has risen to become one of the biggest players in the digital advertising industry. With over 2.45 billion unique visitors per month in the US alone, Amazon provides advertisers access to a massive audience.

One of Amazon’s most powerful tools in advertising is Amazon DSP, or demand-side platform. Amazon DSP is a programmatic advertising platform that allows advertisers to reach Amazon’s vast audience through targeted display, video, and audio ads across the web, mobile devices, and Amazon-owned properties. Essentially, Amazon DSP is an advanced tool that helps advertisers target the right audience with the right message at the right time.

But Amazon DSP is more than just a targeting tool. The platform also offers a range of advanced features and benefits that set it apart from other programmatic advertising platforms.

This article will explore Amazon DSP’s features, benefits, and how it works. Whether you’re a seasoned marketer or just starting out, understanding Amazon DSP can help you make the most of your advertising efforts on the platform and reach your target audience effectively.

Amazon DSP vs. Sponsored Display Ads: A Closer Look

As an advertiser on Amazon, you have several options for reaching your target audience. Two popular choices are Amazon DSP and Sponsored Display Ads.

While both advertising tools can help you achieve your marketing goals, they work in different ways and offer distinct advantages.

Ahead, we’ll take a closer look at Amazon DSP and Sponsored Display Ads and help you determine which option best fits your advertising needs.

The Key Differences Between Amazon DSP and Sponsored Display Ads

Amazon DSP, or Demand Side Platform, is a programmatic advertising platform allowing you to reach wider audiences on and off Amazon. On the other hand, Sponsored Display Ads are a type of pay-per-click (PPC) advertising offered by Amazon that targets shoppers browsing product pages and related categories within Amazon itself.

Here are some key differences between Amazon DSP and Sponsored Display Ads:

Targeting Capabilities

One of the biggest differences between Amazon DSP and Sponsored Display Ads is their targeting capabilities.

Amazon DSP allows for highly granular targeting, using a wide range of data points such as demographics, interests, and behaviors to reach specific audiences.

Sponsored Display Ads are limited to targeting based on product or category interests, which may be less precise.

Ad Placement

Amazon DSP allows advertisers to reach their audience across the web, including on Amazon-owned properties and third-party sites.

On the other hand, Sponsored Display Ads are only shown on Amazon-owned properties such as product detail pages, search results pages, and the Amazon home page.

Campaign Management

Amazon DSP is a self-serve platform that requires advertisers to create and manage their campaigns independently.

Sponsored Display Ads, on the other hand, can be managed through Amazon’s advertising console, where Amazon’s team of experts can offer guidance and support.

Budget Requirements

Amazon DSP typically requires a higher minimum spend than Sponsored Display Ads, which may be a barrier for smaller advertisers. However, Amazon DSP’s more advanced targeting and capabilities may justify the higher cost for larger advertisers with more extensive advertising budgets.

How Amazon DSP Enhances Sponsored Products Ads Performance

Integrating Amazon DSP with your Sponsored Products Ads can improve your overall ad performance. By using Amazon DSP, you can:

  1. Reach more potential Amazon customers who may not have encountered your Sponsored Products Ads during their Amazon browsing
  2. Re-target shoppers who previously viewed your products or similar products, increasing the likelihood of conversion
  3. Gain additional customer insights and data, which can help you refine your ad strategy and make it more effective

The High-Performing Nature of Amazon DSP Advertising

Amazon DSP offers several advantages that make it a high-performing advertising option:

  • Its programmatic approach enables precise targeting, which helps you reach the most relevant audience.
  • The wide range of ad formats (display, video, audio) adds diversity to your ads, keeping them engaging and captivating.
  • Compatibility with various devices and placement options, including Amazon-owned websites and apps, ensures broad exposure for your brand.

Utilize the differences and advantages of Amazon DSP alongside Sponsored Display Ads to create an effective advertising strategy that boosts your visibility and drives sales.

Advantages of Amazon DSP

Amazon DSP offers various advantages to help you optimize your advertising campaigns. It offers advertising advantages in several key areas, allowing businesses to reach a wide audience and build a revolving stream of customers. Some key advantages of Amazon DSP include the following:

Precise Targeting Across Devices

With Amazon DSP, you can target your audience across different devices, such as smartphones, tablets, and desktops. This ensures that your ads are visible to potential customers, regardless of their device and that as an amazon delivery service partner, you can better serve your customers.

As a result, you can reach a wider audience and increase the chances of driving sales. When you identify ways to improve your sales, you can create your through amazon delivery service partners as an amazon delivery business owner.

Dynamic Targeting

Amazon DSP enables dynamic targeting, allowing you to refine your ad campaigns based on performance data. This helps you identify high-performing segments and allocate your budget more effectively.

Also, you can optimize your creative assets in real-time to deliver more impactful ads that resonate with your target audience.

Audience Insights and Analytics

Understanding your audience is crucial to the success of your advertising campaigns. Amazon DSP provides in-depth insights and analytics, enabling you to monitor your campaign performance and identify opportunities to improve your ROI. These tools help you fine-tune your targeting strategies and make data-driven decisions to enhance your ad campaigns’ effectiveness.

  • Precise Targeting Across Devices: Reach your audience across different devices, such as smartphones, tablets, and desktops display ads
  • Dynamic Targeting: Refine your ad campaigns based on performance data, and optimize your creatives in real time
  • Audience Insights and Analytics: Monitor campaign performance and make data-driven decisions for improved ROI


Retargeting is a powerful way to re-engage customers who have shown interest in your products but haven’t made a purchase yet.

Amazon DSP allows you to retarget potential customers through dynamic eCommerce ads by displaying your ads on Amazon-owned sites and third-party websites within their extensive ad network.

It helps you maintain top-of-mind awareness and increase the likelihood of converting potential customers into buyers.


Amazon DSP allows advertisers to reach Amazon’s massive audience, which includes over 200 million unique visitors per month in the US alone. This makes it an excellent option for advertisers looking to expand their reach beyond their existing customer base.

The Power of Streaming TV (STV) Video Ads and Amazon DSP

Streaming TV (STV) video ads have revolutionized how you can reach your target audience. With Amazon DSP, you can leverage this powerful advertising format to achieve your marketing goals. This section will explore the role of STV video ads in Amazon DSP campaigns, how they contribute to mid-to-long-term purchases and their place in the Amazon DSP ecosystem.

The Role of STV Video Ads in Amazon DSP Campaigns

STV video ads are an effective way to capture your audience’s attention and improve brand awareness. Utilizing Amazon DSP, you can access a wide range of STV inventory that fits your targeting strategy. With precise audience segmentation and insightful analytics, your campaigns can achieve higher viewer engagement and better results.

How STV Ads Contribute to Mid-to-Long-Term Purchases

You can use video ads on streaming TV platforms to reach more customers during their viewing experiences. This increased reach helps to influence mid-to-long-term purchasing decisions.

With Amazon DSP’s data-driven insights, you can ensure your ad content resonates with your audience and positively impacts their shopping decisions.

Video Ads in the Amazon DSP Ecosystem

Amazon DSP incorporates STV video ads into its comprehensive advertising ecosystem, providing various opportunities to connect with your audience. You can optimize your campaigns through Amazon’s sophisticated targeting capabilities and analytics tools and see the impact on your key performance indicators.

Combining STV video ads and Amazon DSP creates a powerful synergy that allows you to develop strategic, data-driven campaigns and achieve your marketing goals.

Diving into Amazon DSP Ad Inventory and Supply Sources

Amazon’s Demand Side Platform (DSP) offers a vast range of ad inventory and supply sources to help advertisers reach their target audience. In this section, we will dive into the specifics of Amazon DSP ad inventory, how it differs from supply sources, and where the ads appear to ensure optimal reach.

Understanding Amazon DSP Ad Inventory

Amazon DSP ad inventory includes various ad placements across platforms and devices tailored to your campaign objectives. It includes:

This enables you to choose from a wide range of ad formats and placements, enhancing your overall advertising strategy.

How Amazon DSP Ad Inventory Differs from Supply Sources

While Amazon DSP ad inventory refers to the specific ad placements you can use, supply sources refer to the various platforms, sites, and apps that provide those ad placements. Some key differences between the two are:

  1. Ad inventory is more ad format-centric, whereas supply sources focus on the platforms providing the placements.
  2. Ad inventory can be accessed through Amazon DSP, while supply sources are managed by different supply-side platforms (SSPs).

Where Amazon DSP Ads Appear

Amazon DSP ads can appear in numerous locations, ensuring broad reach and impact. Some popular placements include:

Amazon’s extensive inventory and supply sources provide numerous advertising opportunities to enhance your brand’s visibility and engage your target audience effectively.

Mastering Amazon DSP Inventory Targeting and Best Practices

Amazon DSP (Demand-Side Platform) is a powerful programmatic advertising platform that allows advertisers to reach Amazon’s vast audience with targeted display, video, and audio ads across the web, mobile devices, and Amazon-owned properties.

Types of Inventory Targeting Available on Amazon DSP

When using Amazon DSP, you have several inventory targeting options. These include:

  • Owned and Operated (O&O) inventory
  • Third-party inventory
  • Programmatic Direct (PD) deals

By leveraging these options, you can effectively display your ads to the right audience and maximize your ROI.

Responsive eCommerce Creative (REC) and Its Benefits

Amazon DSP offers Responsive eCommerce Creative (REC) as a powerful ad format. REC entails:

  • Dynamic product ads that fit various placements on web and mobile
  • Adaptation to customer behavior and preferences
  • Self-optimizing creative that improves performance over time

As a result, REC enables you to create more personalized and appealing ads that boost campaign performance.

Display Ads Best Practices for Amazon DSP

Following best practices when creating display ads for Amazon DSP is crucial. Some of these practices include:

  • Utilizing high-quality images and easy-to-read text
  • Keeping your message focused and concise
  • Including a clear call-to-action (CTA)

By implementing these best practices, your display ads will generate better engagement, click-through rates, and conversions.

Setting Goals for Your Amazon DSP Campaign

When creating an Amazon DSP campaign, setting clear goals and defining specific key performance indicators (KPIs) is essential. This is crucial for maximizing your return on investment (ROI) and maintaining a strong competitive presence in eCommerce.

Importance of Defining Goals and KPIs for Your Campaign

Defining your campaign goals and KPIs provides a blueprint for success, helping you optimize your campaign for better performance. A clear set of goals helps keep your team focused on what matters most, while KPIs allow you to measure progress and adjust as needed.

Without well-defined goals and KPIs, your campaign can quickly lose direction, wasting valuable resources and time. This could lead to lower ROI, missed opportunities, and potential loss of market share to your competitors.

Tips for Setting Achievable and Measurable Goals on Amazon DSP

Setting achievable and measurable goals is important to any successful advertising campaign, including those on Amazon DSP (Demand-Side Platform).

Here are some tips for setting achievable and measurable goals on Amazon DSP:

Define Your Objectives

Start by defining your advertising objectives. What do you want to achieve with your campaign? Are you looking to increase brand awareness, drive sales, or generate leads?

By defining your objectives, you can ensure your goals align with your overall advertising strategy.

Use Specific Metrics

Instead of setting vague goals like “increase sales,” use specific metrics to measure your success. For example, set a goal of increasing your click-through rate (CTR) by a certain percentage or driving a specific number of conversions.

Set Realistic Targets

Be realistic when setting your targets. Look at your historical performance data on Amazon DSP and set achievable targets based on your past performance. This will help you avoid setting unrealistic goals that can be demotivating if not achieved.

Keep Your Budget in Mind

Keep your budget in mind when setting your goals. If your budget is limited, you may need to adjust your targets accordingly to ensure you can achieve your goals within budget constraints.

Monitor Your Performance

Once you’ve set your goals, monitor your campaign’s performance closely to see if you’re on track to achieve your targets. Make adjustments as necessary, such as optimizing your ad creatives or adjusting your targeting options, to ensure that you are on track to achieve your goals.

Harnessing the Power of Reporting in Amazon DSP

Effective reporting plays a crucial role in maximizing the potential of your Amazon DSP campaigns. This section will explore various aspects of Amazon DSP’s reporting suite and how to leverage them to optimize your ad strategies.

Navigating the Amazon DSP Reporting Suite

The reporting suite in Amazon DSP offers diverse options for analyzing your campaigns. You can access the reporting tools by selecting your DSP account’s “Reports” tab. This will provide insights into campaign performance, audience demographics, and more.

Types of reports available include performance, audience, creative, and overlap reports. Each type offers a unique perspective on your advertising, and you should familiarize yourself with using them appropriately.

Understanding Overlap Reports and Their Significance

Overlap reports are an essential tool in Amazon DSP, enabling you to understand the interaction between your campaigns and other Amazon offerings. These reports showcase how your audiences overlap with other Amazon marketing services, like Sponsored Products, Brands, and Displays.

Analyzing these reports can help you identify opportunities for targeting new or existing customers with different advertising techniques. It’s a valuable resource for refining your marketing strategies.

Utilizing Reports to Optimize Your Amazon DSP Campaigns

Armed with the data from Amazon DSP reports, you can make informed decisions to optimize your campaigns. Review the performance reports to identify trends, demographics, and creatives driving the best results for your business.

For instance, if you notice that a particular creative is outperforming others, consider testing variations of that creativity to find the best combination for your target audience. By regularly evaluating report data and implementing actionable insights, you’ll be well-equipped to maximize your Amazon DSP success.

Final Thoughts: Elevating Your E-commerce Advertising with Amazon DSP

Amazon DSP (Demand-Side Platform) is a powerful programmatic advertising platform that can help advertisers reach their target audience and drive conversions on Amazon and beyond.

Amazon DSP can use advanced targeting, brand safety features, and real-time reporting and analytics to help advertisers optimize their campaigns and achieve their advertising goals.

Whether you’re a small business owner or a large brand, understanding Amazon DSP and its features can help you create more effective campaigns and drive better results. From setting achievable and measurable goals to mastering inventory targeting and creative types, there are many ways to elevate your e-commerce advertising with Amazon DSP.

As the digital advertising landscape evolves, Amazon DSP remains a critical tool for advertisers looking to reach a massive audience and drive conversions on the platform.

By staying up-to-date on the latest trends and best practices in Amazon DSP advertising, you can ensure that your campaigns are optimized for maximum ROI and success.

Frequently Asked Questions

What is the Cost of Using Amazon DSP?

The cost of using Amazon DSP depends on your advertising goals and budget. Amazon operates on a cost-per-thousand-impressions (CPM) model, meaning you pay a fee for every thousand times your ad is displayed.

How Do I Get Started with Amazon DSP?

To start with Amazon DSP, you can either sign in to your Amazon Advertising account or create a new one.

Once signed in, access the Amazon DSP dashboard, where you’ll be guided through setting up your first campaign. You’ll need to define your target audience, select desired ad placements, and set a budget and bid strategy.

Can I Target Specific Customer Segments with Amazon DSP?

Yes, Amazon DSP provides advanced targeting options to help you reach specific customer segments.

You can target audiences based on shopping, browsing, streaming behaviors, and demographic information and even create custom audience segments using Amazon’s first-party data. This ensures your ad campaigns reach the most relevant and interested customers.

How Does Amazon DSP Ensure Ad Relevance and Effectiveness?

Amazon DSP uses machine learning algorithms to optimize ad placements and target the most relevant users.

By analyzing user behaviors and preferences, the platform can serve ads that are both engaging and likely to achieve campaign success. Additionally, Amazon provides detailed campaign performance reports, allowing you to fine-tune your strategies for maximum effectiveness.

What Are the Key Metrics to Track in My Amazon DSP Campaign?

Some key metrics to track in your Amazon DSP campaign include:

  • Impressions: The number of times your ad has been displayed
  • Click-through rate (CTR): The percentage of ad clicks divided by impressions
  • Conversions: The number of desired actions taken by users, such as purchases or sign-ups
  • Return on ad spend (ROAS): The revenue generated from ads divided by the ad spend
  • Cost-per-action (CPA): The amount you pay for each conversion

Monitoring these metrics helps you evaluate campaign performance and make informed optimizations.

What are the different types of ads that can be run on Amazon DSP?

Amazon DSP allows advertisers to run various display, video, and audio ads. These ads can be customized with various targeting options and creative types to reach specific audiences and optimize campaign performance.

What are the advantages of using Amazon DSP over other advertising platforms?

Amazon DSP offers several advantages over other advertising platforms, including advanced targeting options, access to Amazon’s unique data insights, real-time reporting and analytics, and brand safety features.

Additionally, Amazon DSP allows advertisers to reach Amazon’s massive audience, which includes over 2.45 billion unique visitors per month in the US alone.

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