Advertising on Amazon has evolved far beyond simple product listings and keyword-based ads. Today, Amazon DSP (Demand-Side Platform) offers advertisers a powerful way to reach targeted audiences both on and off Amazon, utilizing Amazon’s vast first-party data and programmatic ad technology. Unlike Amazon’s PPC-based Sponsored Ads, DSP allows brands to engage in sophisticated, data-driven advertising strategies that go beyond direct product promotion. But how exactly does Amazon DSP work, and how can businesses use it to unlock advanced advertising strategies? That’s what we’ll talk about in this article. 

What is Amazon DSP?

Amazon DSP is a programmatic advertising platform that allows brands to purchase display, video, and audio ads to reach shoppers across Amazon-owned properties (such as Amazon.com, Fire TV, and Twitch) and thousands of external websites and apps. Unlike Amazon PPC ads, which rely on keyword targeting, DSP uses audience-based targeting, leveraging Amazon’s vast dataset on shopping behavior, demographics, and interests.

Through real-time bidding (RTB), Amazon DSP enables advertisers to bid for ad placements, ensuring that ads reach the right audience at the right time. The platform supports brand awareness, consideration, and conversion-focused campaigns, making it a crucial tool for businesses looking to scale their Amazon presence beyond Sponsored Ads.

Why Use Amazon DSP for Advanced Advertising Strategies?

Amazon DSP offers several key advantages over traditional advertising methods:

• Access to Amazon’s first-party data: Unlike third-party advertising platforms, Amazon DSP utilizes Amazon’s proprietary shopper insights, enabling hyper-targeted ads.
• Expanded reach beyond Amazon: While Amazon PPC ads primarily appear on Amazon’s marketplace, DSP ads can be displayed across Amazon-affiliated sites and external networks, including premium publishers.
• Advanced audience segmentation: DSP enables brands to segment audiences based on shopping behavior, product interests, and past purchase history.
• Retargeting capabilities: Brands can re-engage customers who visited their product pages but didn’t purchase, significantly increasing conversion rates.
• Omnichannel marketing integration: DSP allows advertisers to bridge the gap between Amazon and external marketing efforts, ensuring a cohesive advertising strategy across platforms.

Whether you’re launching a new product, scaling brand awareness, or retargeting high-intent shoppers, Amazon DSP provides data-driven precision that significantly enhances ad effectiveness.

How is Amazon DSP Different from Other Amazon Ads?

Amazon DSP differs from other Amazon advertising solutions in several ways:

While Amazon PPC is great for direct sales, DSP excels at customer acquisition, brand awareness, and retargeting. For businesses serious about long-term growth, combining Amazon DSP with Sponsored Ads can create a full-funnel advertising approach that covers all stages of the buyer journey.

Advanced Audience Targeting Strategies with Amazon DSP

One of the most powerful aspects of Amazon DSP is its advanced audience targeting capabilities. Unlike keyword-based campaigns, DSP allows advertisers to target audiences based on real shopper behavior and interests.

Leveraging Amazon’s First-Party Data

Amazon DSP utilizes vast first-party shopper data to help brands reach highly relevant audiences. Advertisers can target shoppers based on:

• Browsing behavior: Users who have viewed similar products in the past.
• Shopping history: Customers who have purchased related or complementary products.
• Demographic data: Age, gender, household income, and other attributes.
• In-market audiences: Consumers currently researching or considering products within a specific category.
• Affinity audiences: Shoppers with an ongoing interest in a specific category (e.g., fitness, tech, home improvement).

By leveraging these targeting options, brands can deliver highly personalized ad experiences, increasing engagement and conversion rates.

Retargeting Strategies for Higher Conversions

Retargeting is a crucial feature of Amazon DSP, allowing brands to re-engage high-intent shoppers who didn’t convert on their first visit. Here’s how brands can maximize retargeting efficiency:

• Product View Retargeting: Target shoppers who viewed your product but didn’t make a purchase.
• Website Retargeting: Re-engage users who visited your website but left before buying.
• Cart Abandonment Retargeting: Show personalized ads to users who added products to their cart but didn’t check out.
• Cross-Selling Opportunities: Advertise complementary products to customers who purchased related items.
• Excluding Recent Purchasers: Prevent ad waste by excluding customers who recently bought the product.

Studies show that retargeting ads can boost conversion rates by up to 70%, making it a vital strategy for brands looking to optimize ad spend.

Audience Segmentation and Lookalike Audiences

Beyond retargeting, Amazon DSP enables brands to create custom audience segments based on existing customer data. Using lookalike audiences, brands can expand their reach by targeting users who share similar attributes with their best customers.

For example, if your product appeals to tech-savvy consumers aged 25-40, DSP can find new shoppers with similar browsing habits, demographics, and purchase behavior, effectively increasing customer acquisition rates.

Competitor Targeting for Market Domination

Amazon DSP also allows brands to target shoppers who have viewed competitor products. This strategy helps brands win over competitor audiences by presenting better pricing, superior features, or exclusive promotions.

For example, if a user views a Nike running shoe, Adidas could run a competitive DSP ad showcasing a similar product with a special discount or unique feature.

Excluding Audiences for Better ROI

Effective audience exclusion prevents ad waste and oversaturation. Brands can exclude:

• Customers who already purchased the advertised product.
• Users who viewed the product too many times without converting.
• Shoppers who interacted with a competing product but showed no interest in yours.

This ensures that ad budgets are spent on high-potential customers rather than audiences who are unlikely to convert.

Optimizing Amazon DSP Ad Formats for Engagement

Amazon DSP supports various ad formats, each designed for different campaign objectives. Advertisers can choose from:

• Display Ads: Banner ads appearing on Amazon and third-party websites.
• Video Ads: Short-form video ads on Fire TV, Twitch, and external networks.
• Audio Ads: Ads that run on Amazon Music and Alexa-enabled devices.
• OTT (Over-the-Top) Streaming Ads: Full-screen ads displayed on Amazon Prime Video, Fire TV, and other streaming platforms.
• Dynamic eCommerce Ads: Auto-generated ads featuring live product pricing, reviews, and availability.

Optimizing ad creatives is crucial for engagement. High-quality visuals, concise messaging, clear calls-to-action (CTAs), and A/B testing can significantly impact ad performance.

ZonHack’s expert-managed DSP services help brands design, test, and optimize creatives for maximum conversions, ensuring that every ad placement drives measurable results.

Structuring an Effective Amazon DSP Campaign

A well-structured Amazon DSP campaign is essential for maximizing reach, engagement, and return on ad spend (ROAS). Unlike Amazon PPC, which primarily targets shoppers searching for specific products, DSP campaigns focus on audience behavior and intent. This means advertisers must define their campaign goals, audience segments, budget allocation, and performance tracking strategies before launching.

Setting Clear Campaign Objectives

Before launching a campaign, businesses should determine their primary goal:

• Brand Awareness: Expanding reach and attracting new customers.
• Consideration: Engaging shoppers who are actively researching similar products.
• Conversion: Driving direct sales through precise targeting and retargeting.
• Customer Retention: Re-engaging past buyers and encouraging repeat purchases.

A well-structured funnel approach ensures that each stage of the customer journey is addressed. For example, a brand awareness campaign might focus on video and display ads, while a retargeting campaign prioritizes dynamic eCommerce ads that feature live pricing and reviews.

Budget Allocation for Maximum ROI

Amazon DSP operates on a Cost Per Mille (CPM) model, meaning advertisers pay for every 1,000 ad impressions rather than clicks. Because of this, effective budget allocation is crucial for maximizing impact.

Brands with larger budgets can invest more in top-of-funnel brand awareness campaigns, while smaller advertisers may prioritize retargeting and customer retention for faster ROAS.

Geographic and Device-Based Targeting

Amazon DSP allows advertisers to refine their targeting based on:

• Geographic location: Localized targeting ensures that ads appear in relevant regions.
• Device type: Optimizing ad placements for mobile, desktop, and Fire TV users ensures maximum engagement.
• Shopping behavior: Desktop users may be more likely to engage with detailed product research ads, while mobile users respond better to quick, impulse-driven ad creatives.

Understanding how different audiences interact with ads across devices helps businesses optimize campaign performance.

Bottom Line: Is Amazon DSP Right for Your Business?

Amazon DSP is a powerful tool for brands looking to expand beyond traditional Amazon PPC ads. By leveraging Amazon’s first-party data, advanced targeting capabilities, and cross-channel reach, businesses can drive higher brand awareness, engagement, and conversions.

At ZonHack, we help brands unlock the full potential of Amazon DSP with data-driven campaign management, expert audience targeting, and custom ad optimization strategies. Whether you’re scaling a growing brand or launching a new product line, our DSP experts can help you navigate the complexities of programmatic advertising and ensure profitable ad performance.

Contact ZonHack today for expert guidance on Amazon DSP campaign management.