Amazon DSP 101 — What It Is & How It Works
If you’re running an eCommerce business and aren’t yet leveraging Amazon DSP, now is the time to lean in. Amazon’s Demand-Side Platform (DSP) is a powerful tool for brands that want to scale beyond Sponsored Ads, tap into rich targeting capabilities, and influence shoppers across the entire web—not just on Amazon.
This blog breaks down exactly what Amazon DSP is, how it differs from other ad options, and why it’s become a must-have for growth-focused brands.
What Is Amazon DSP?
Amazon DSP is a programmatic advertising platform that allows brands to buy display, video, and audio ads at scale. Unlike Sponsored Products or Sponsored Display, DSP lets you reach audiences both on and off Amazon using Amazon's first-party shopping and behavioral data.
With DSP, you can:
Retarget shoppers who viewed your product but didn’t buy
Reach entirely new audiences who have searched for similar items
Serve ads across Amazon.com, IMDb, Fire TV, Twitch, and thousands of third-party websites
Amazon outlines the full scope of DSP capabilities in their official guide.
How Is Amazon DSP Different from Amazon Sponsored Ads?
Reach: Amazon Sponsored Ads only show on Amazon. DSP works across the wider web.
Targeting: DSP leverages Amazon's behavioral and lifestyle signals (e.g. in-market, interest-based).
Creative Freedom: DSP supports a broader range of formats, including video and audio.
Attribution: Track upper-funnel awareness and post-view conversions, not just clicks.
According to Ecommerce Nurse, DSP also offers deeper campaign control, custom audience building, and greater visibility into performance metrics.
Who Should Be Using DSP?
While DSP was once seen as a tool for enterprise brands with big budgets, the landscape has changed. Now, mid-sized eCommerce companies, aggregators, and even startups are using DSP to:
Re-engage cart abandoners
Launch new product lines
Increase repeat purchases
Do You Need to Be Selling on Amazon?
Surprisingly, no. Amazon DSP can be used by non-endemic brands (those not selling on Amazon) to tap into high-intent audiences across the web.
As Finch explains, that makes DSP one of the most powerful yet underused tools for both Amazon sellers and brands selling on other channels.
Key Takeaway
Amazon DSP is no longer just for the biggest players. It’s a scalable, data-rich solution that gives marketers access to:
Cross-channel retargeting
Real-time bidding and audience optimization
Deep reporting via Amazon Marketing Cloud (AMC)
If you're already investing in Sponsored Products or Display, adding DSP is the next logical step in creating a full-funnel advertising strategy.
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