Amazon DSP comes up in conversations about scaling, usually surrounded by terms like programmatic, audiences and impressions. For a seller who has spent years in Sponsored Products, it can sound like a different world. It is, partly. But the core idea is simple, and once it is clear, deciding whether you need it gets much easier.
This guide explains what a demand-side platform is, how Amazon's works, how it differs from Sponsored ads, what it takes to run, and how to tell whether your business is ready for it.
What a demand-side platform is
A demand-side platform is software for buying ad space automatically. Websites, apps and streaming services offer ad space; a DSP lets an advertiser bid on that space in real time, aimed at particular audiences, across many sites at once. "Demand side" just means the buyer's side of the market.
Many companies run DSPs. Amazon's is distinct because it can use Amazon's own shopping signals to define audiences, and because it can place ads on Amazon properties as well as elsewhere. What Amazon DSP is gives a shorter overview.
How it differs from Sponsored ads
Sponsored Products and Sponsored Brands respond to a search. A shopper types a query, and your ad appears because you bid on that query or a related product. You pay when someone clicks. The shopper has already shown intent.
DSP responds to an audience. You choose groups of people, such as shoppers who viewed your product but did not buy, or shoppers who buy in a related category, and show them display or video ads wherever they are. You typically pay for impressions rather than clicks. The shopper may not be looking for anything right now.
Put simply, Sponsored ads catch demand that already exists. DSP creates demand or brings back shoppers who left. DSP vs Sponsored ads compares the two in detail.
Audiences: the core of DSP
Everything in DSP starts with who you want to reach. Common audience types include shoppers who viewed or bought your products, shoppers who viewed similar products, people interested in a category or lifestyle, and lookalikes of your existing customers. You can also bring your own audiences in some setups.
Retargeting, reaching people who viewed your product without buying, is where most sellers start, because it is closest to Sponsored ads in intent. DSP audiences covers the full range.
Where the ads appear
DSP ads can appear on Amazon's own site and apps, on Amazon-owned properties, on devices, and across third-party websites and apps through exchanges. Formats include display banners, video and streaming TV ads. You control placements through the campaign settings, and you can keep a campaign narrow or let it run broadly.
Ways to run it
There are two broad routes. Amazon offers a managed service, where its team runs campaigns for you, typically with a minimum spend that Amazon sets and that varies. The alternative is self-service, where you or an agency operate the platform directly. Self-service gives more control and requires more expertise. Many sellers use an agency that already has self-service access. What DSP costs covers pricing and fees in more detail.
Measuring DSP
DSP is harder to measure than Sponsored ads, because its job is often to influence a later purchase rather than produce an immediate click. Look at metrics such as detail page view rate, purchase rate, new-to-brand share and return on ad spend, and look at how branded search and Sponsored ads performance change while DSP is running. Judge it over weeks, not days. Amazon Marketing Cloud can help connect DSP exposure to later behavior for advertisers with the volume and skills to use it.
How DSP fits with Sponsored ads
DSP works best as a layer on top of Sponsored ads, not a replacement. A shopper who sees a DSP video may later search for your brand, and a Sponsored Brands or Sponsored Products ad catches that search. A shopper who left your product page may return through a retargeting ad and buy. If your Sponsored ads coverage on brand and core terms is thin, some of the demand DSP creates will go to competitors. Sponsored Display vs DSP covers where the self-service display option fits between the two.
Are you ready for it?
A few signs that DSP may be worth testing. Your Sponsored ads are well structured and efficient, and growth from them is slowing. You have good product page traffic but a meaningful share of visitors leave without buying. You have budget for a test that runs long enough to learn from. You have creative assets, or the ability to make them.
Signs to wait. Sponsored ads are still messy or unprofitable. Budget is tight enough that every unit of spend needs to show a direct return within days. Listings are not yet converting well, so bringing shoppers back would mostly bring them back to a weak page. DSP for smaller sellers covers how to start small if you do go ahead. A first test is usually a single retargeting campaign on your best-selling products, run long enough to see its effect on branded search and sales.
Frequently asked questions
What is the difference between Amazon DSP and Sponsored Products?
Sponsored Products shows ads to shoppers searching on Amazon, and you pay per click. Amazon DSP buys display and video ads programmatically, on and off Amazon, aimed at audiences rather than search terms, and is usually priced per thousand impressions. Sponsored Products captures demand; DSP mostly creates or recaptures it.
Do I need to be a large brand to use Amazon DSP?
Not necessarily, but DSP works best when you have enough budget to reach audiences repeatedly and enough Sponsored ads coverage that the shoppers DSP brings back can find you. Smaller sellers usually get more from tightening Sponsored ads first.
Can I use Amazon DSP without selling on Amazon?
Yes. Amazon DSP can be used by advertisers who do not sell on Amazon, to reach audiences across Amazon properties and third-party sites. Most sellers use it to drive shoppers to their Amazon listings, but it is not limited to that.
Off Hours keeps your Sponsored ads foundation in shape with scheduling, budget and performance rules on a 15-minute cadence, so DSP has something solid to build on. Start a free 14-day trial.