Key takeaways:

1. Amazon DSP (Demand-Side Platform) is an advanced programmatic advertising platform that allows brands and agencies to purchase display, video, and audio ad placements both on Amazon-owned sites and apps and on third-party sites and apps.
2. Amazon DSP gives advertisers access to exclusive first-party data from Amazon, advanced targeting, and access to both Amazon-owned and third-party channels, making it a powerful tool for brand awareness and full-funnel marketing.
3. To get started with Amazon DSP, you can either work directly with Amazon as a managed service client (requires typically $35,000+ minimum spend) or with an Amazon DSP agency or partner.

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Amazon is one of the largest advertising platforms in the world, with ad revenue that rivals Google and Meta. Within Amazon's suite of advertising options, Amazon DSP stands apart as the most powerful and sophisticated tool for brands that want to go beyond keyword targeting and search ads.

This guide explains what Amazon DSP is, how it works, who it's for, and how to get the most out of it as a U.S.-based seller or brand.

What is Amazon DSP?

Amazon DSP (Demand-Side Platform) is a programmatic advertising platform that allows advertisers to buy display, video, and audio ad placements at scale. Unlike Sponsored Products or Sponsored Brands — which are keyword-driven and appear primarily within Amazon search results — DSP uses audience targeting and behavioral data to serve ads both on Amazon-owned properties and across thousands of third-party websites and apps.

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The key differentiator is Amazon's first-party data. Because Amazon owns the purchase journey from search to checkout, it has access to rich behavioral signals: what shoppers searched for, what they viewed, what they added to cart, what they actually bought, and how recently. DSP lets advertisers tap into that data to reach the right audiences — whether they're actively shopping on Amazon or not.

Amazon DSP ad formats

Display ads

Static or dynamic banner ads that appear on Amazon-owned sites (including IMDb, Zappos, and Amazon.com itself) and on third-party websites within Amazon's publisher network. Display ads can be used for retargeting, prospecting, or competitive conquest campaigns.

Video ads

In-stream and out-stream video placements on Amazon-owned and third-party inventory. Video ads are particularly effective for brand storytelling and reaching audiences on Fire TV, IMDb, and other streaming platforms.

Audio ads

Audio placements that run on Amazon Music's free tier and other Amazon-owned audio properties. These are best for brands targeting audiences through audio content consumption.

Over-the-Top (OTT) / Connected TV

Non-skippable video ads delivered through connected TV devices, including Fire TV. These reach audiences in a high-attention, lean-back environment and are growing rapidly as streaming viewership increases.

Who should use Amazon DSP?

Amazon DSP is most effective for brands that want to go beyond search intent — building awareness, retargeting browsers who didn't convert, and reaching audiences based on their demonstrated shopping behaviors.

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It's particularly well-suited for established brands and larger sellers with sufficient budget (typically $35,000+ for Amazon's managed service, though self-service options via agency partners have lower thresholds), brands launching new products and wanting to build awareness, brands selling across multiple channels who want to retarget Amazon shoppers off-platform, and companies with longer buying cycles who need full-funnel strategies rather than just bottom-of-funnel conversion ads.

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Smaller sellers with limited budgets are typically better served by Sponsored Products and Sponsored Brands first, before graduating to DSP.

Amazon DSP audience targeting options

The power of DSP lies in its targeting capabilities. Key audience types include:

• In-market audiences — shoppers who have recently searched for or purchased products in your category.
• Lifestyle audiences — audiences grouped by broader behavioral patterns (e.g., frequent pet supply buyers, outdoor enthusiasts).
• Remarketing audiences — shoppers who viewed your product detail page, added to cart, or purchased previously. This is one of the highest-value audience types in DSP.
• Contextual targeting — placing ads on pages with content relevant to your product category, regardless of the specific audience.
• Lookalike audiences — audiences that share behavioral characteristics with your existing customers or converters.

Amazon DSP vs. Sponsored Ads: key differences

Sponsored Ads (Sponsored Products, Sponsored Brands, Sponsored Display) are auction-based, keyword and ASIN-driven, and operate primarily within Amazon search and product pages. They're designed for lower-funnel, intent-driven conversions.

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Amazon DSP is programmatic, audience-driven, and operates across Amazon-owned and third-party inventory. It's designed for full-funnel campaigns: building awareness with new audiences, retargeting browsers, and re-engaging past customers. DSP also allows you to reach customers when they're not on Amazon — a significant advantage for brands investing in long-term growth.

How to get started with Amazon DSP

There are two main paths:

1. Amazon managed service — You work directly with Amazon's team. Requires typically $35,000+ minimum ad spend and Amazon handles campaign setup and management. Best for large brands with dedicated ad budgets.
2. Self-service via an Amazon DSP partner or agency — Lower entry point, more control. You work with an accredited agency (like ePlaybooks) that has DSP access and manages campaigns on your behalf. This is the more common path for growing brands.

Key metrics for Amazon DSP campaigns

• Total ROAS — Return on ad spend including both direct and attributed sales.
• New-to-brand % — What percentage of purchases came from customers who hadn't bought from your brand in the past 12 months. A core DSP success metric.
• Detail page views (DPV) — How many times your product pages were viewed as a result of the campaign.
• Purchase rate — How many ad exposures led to a purchase, even without a direct click.
• Frequency — Average number of times a single user saw your ad. Managing frequency prevents ad fatigue.

Final thoughts

Amazon DSP is a sophisticated tool that unlocks a layer of advertising power not available through Sponsored Ads alone. For brands ready to invest in full-funnel growth — awareness, consideration, and conversion — it offers unparalleled access to Amazon's first-party data and a massive reach across both Amazon-owned and external inventory.

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If you're considering Amazon DSP and want expert guidance on whether it's the right fit for your current stage and budget, the team at ePlaybooks can help you evaluate and structure a DSP strategy that works.