Targeted advertising is becoming increasingly important for Amazon sellers. With Amazon DSP, you now have a powerful tool that combines programmatic reach and exclusive targeting. The platform uses Amazon's huge wealth of data to display your products to exactly the right target group - not only on Amazon itself, but also on platforms such as Twitch, Fire TV or IMDb and thousands of other premium websites.
The trend towards programmatic advertising shows: If you want to scale your brand awareness and increase performance, you can hardly avoid Amazon DSP. For sellers, this means access to exclusive buyer signals and the ability to target advertising efficiently and data-driven along the entire customer journey. If you want to remain visible on the advertising market today, Amazon DSP gives you a clear advantage through targeted targeting and flexible reach.
Amazon DSP is now the control panel for targeted, automated advertising - far beyond the Amazon store. Whether you want to promote your products or target buyers, this platform brings together data, technology and reach to help you do just that. Amazon DSP stands for Demand Side Platform. This means that you control where and to whom your ads are displayed, both on Amazon itself and on high-reach partner sites. You use Amazon's huge wealth of data and benefit from a high level of automation, smart targeting and a selection of modern advertising formats.
Photo by Tobias Dziuba
Amazon DSP stands out in three main ways:
Not only large brands can work with Amazon DSP. Smaller sellers, B2B companies or brands without an Amazon store also use this solution as long as a targeted approach to the target group and scalable reach are required. Typical use cases:
Targeting is at the heart of Amazon DSP. Using real-time and historical data, the platform filters users according to interests, purchasing behavior, search terms, demographics and even media usage (e.g. viewers of Prime content). This is used to create strong target group profiles that allow a personalized approach.
Here are some targeting options that sellers use particularly frequently:
Amazon DSP offers you flexible formats for every strategy, including:
You can define your own goals for each advertising format. For example, you can achieve greater reach and brand awareness with video ads, while display ads are particularly effective for retargeting and in the lower funnel.
Amazon DSP pricing is impression-based, i.e. per 1,000 visible impressions (CPM). There are different minimum budgets depending on the service model. Agencies usually offer smaller entry-level budgets and support you with setup and optimization. With direct self-service, many providers start from a monthly budget of around 10,000 euros, while agency services start lower. There is usually a percentage fee per campaign and possibly a platform fee for the managed service.
Amazon DSP gives you as a seller access to exclusive buyer data, a huge reach and targeted targeting that performs. Whether launch, retargeting or brand building: This platform gives you the tools to grow efficiently with every ad campaign and get more out of your advertising budget.
Amazon DSP brings a breath of fresh air to digital advertising. With automated technology and clever algorithms, the platform ensures that your ads land at the right time, in the right place and, above all, with the right people. The principle behind it sounds technical at first - but it's actually like a live marketplace where every ad finds its optimal place in milliseconds.
When users visit a website or app, available advertising spaces are placed in an auction. Amazon DSP quickly evaluates which users are particularly well suited to your offer - for example, because they have recently searched for a similar product, viewed it or even added it to their shopping cart. A sophisticated algorithm then places a bid. Whoever places the highest (and most suitable) bid gets the advertising space. All of this happens fully automatically and in real time, usually in less than 100 milliseconds.
This happens in detail:
This not only enables efficient reach, but also a precise, personalized approach along the entire customer journey.
What makes Amazon DSP particularly special is its access to huge amounts of first-party data. You can select target groups not only on the basis of traditional criteria such as age, gender or location, but also according to real user behavior:
This deep targeting is live and automatic for each user, which is why the ads appear highly relevant.
Amazon DSP is not limited to one type of display. Instead, you can choose from various formats:
Your ads will not only be displayed on Amazon itself, but throughout the entire Amazon Publisher Network - i.e. on popular Amazon platforms as well as on thousands of partner websites and apps.
Amazon DSP works on the basis of CPM (cost per 1,000 impressions). You only pay for visible displays of your ad, regardless of whether a click occurs. This gives you maximum control over reach and budget.
An overview of billing:
| Pricing model | What is paid? | Ideal for |
|---|---|---|
| CPM | Visual contacts (impressions) | Reach, brand building |
| CPC (PPC) | Every single click on ad | Performance, Conversion |
While Sponsored Ads work on a click basis, with Amazon DSP you are targeting visibility and high-quality contacts.
The true backbone of Amazon DSP is the learning technology. The algorithm continuously collects and analyzes data, recognizes which ads work particularly well with which target group and continuously fine-tunes performance.
This not only gives you more reach, but also better results in terms of conversion, repurchase rate and brand loyalty in the long term - fully automated in the background.
You can either manage Amazon DSP yourself (self-service) or leave it to experts (managed service). Self-service is suitable for experienced advertisers and offers maximum flexibility. In the managed service, Amazon (or a specialized agency) takes over planning, control and optimization - perfect if budget and strategy are to be considered on a large scale.
Thanks to integration with Amazon Marketing Cloud (AMC), you gain deep insights into the customer journey. You can see how users react to your ads, where they enter and at what point they convert. You can use this data to make targeted adjustments to your campaigns in real time and constantly develop them further.
In a nutshell:
With Amazon DSP, you can now control your digital advertising smarter, faster and more accurately than ever before. You benefit from Amazon's wealth of data, live auctions in advertising inventory and technologies built from the ground up for performance.
The Amazon DSP is now open to far more companies than many initially think. In fact, you don't even have to sell your products directly on Amazon to take advantage of this platform. The special feature: Amazon DSP allows programmatic advertising targeted both on and off Amazon, which offers sellers a powerful extension for their marketing strategy.
In principle, Amazon DSP is accessible to any advertiser - regardless of whether you are a large brand, an online store, a private label seller or even active in B2B. The only requirement is that you want to display targeted digital advertising. Even retailers without their own Amazon account can benefit from the data and reach of the DSP.
Typical users are:
The platform is very versatile, particularly due to the large number of targeting options. Amazon's data foundation makes it possible to target groups according to buying interest, behavior and interests - no matter where these potential buyers are on the Internet.
Amazon DSP is not just a "nice-to-have", but pays off wherever targeted targeting and scalable campaigns are important goals. The platform is particularly worthwhile if you manage larger brand budgets and value data-driven decisions.
Here are the main groups for which Amazon DSP pays off:
To be honest, anyone with a very small budget, little experience in campaign management or a purely short-term sales focus will probably find classic Amazon PPC more appealing. The greatest strengths of DSP can be seen where long-term thinking and budgeting are involved and a deeper understanding of data and target group analysis is brought to the table.
In a nutshell:
Amazon DSP is worthwhile for anyone who wants to scale their brand in a targeted manner and break new ground in data-driven advertising. Whether you want to start with awareness, push targeted sales or acquire new customers - with the right strategy, the platform offers measurable success for sellers of all sizes.
The targeting and ad format options make Amazon DSP a real secret weapon for sellers who want to get more out of it than traditional PPC activities allow. What makes the platform so attractive now? You combine data-based target group targeting with flexible advertising formats, regardless of whether you are aiming for brand awareness, leads or hard sales. This gives you maximum control without constant manual adjustments - supported by Amazon's experience and AI.
Amazon DSP is one of the most precise tools for addressing target groups. The platform accesses exclusive first-party data that goes far beyond what external DSPs offer. For example, you not only reach users who are searching for specific products, but can also target them specifically:
This matrix gives you plenty of scope to accompany different target groups throughout their buying process - from the initial impulse to upselling after the purchase.
The right approach only works with the right format. Amazon DSP combines a wide selection, each tailored to the goals and touchpoints of your customer journey.
The most important formats include:
A combination of these formats helps to remain visible and relevant along the entire customer journey.
The biggest advantage of the Amazon DSP is that you are not limited to one format and target. With a cross-channel strategy, you can pick up users at different stages:
This is how smarter control works:
| Display format | Intended use | Reach | Personalization |
|---|---|---|---|
| Standard Display Ads | Brand, Retargeting | Very high | High (customizable) |
| Dynamic e-commerce ads | Conversion, cross/up-selling | Medium to high | Very high (automated) |
| Video Ads | Awareness, commitment | High (TV, streaming, web) | Medium to high |
| Audio Ads | Brand Awareness | Niche target groups | Medium |
Every DSP campaign is data-driven: The platform constantly checks where and how your target groups are best reached. It continuously adjusts advertising media, budget and playout - for maximum relevance and optimal ROAS.
Those who test and combine their ad formats and continuously adjust their targeting can now get the most out of every euro with Amazon DSP - and are always one step ahead of the competition.
Amazon DSP not only brings a new dimension to your reach, but also offers you powerful tools to keep an eye on costs, performance and optimization in real time. Especially when it comes to billing, reporting and optimization, the Amazon DSP clearly stands out from traditional advertising models. To get the most out of your budget, a good understanding of these topics is essential.
Photo by Luke
Amazon DSP relies on a purely impression-based billing model (CPM). This means that you always pay per 1,000 visible ad impressions. This model is deliberately different from Amazon PPC, where you pay per click. You can plan all costs in advance. The Managed Service adds a service fee of around 15 percent and a platform fee (usually 10 percent of the advertising budget). With self-service, you control everything yourself and save yourself additional administration fees.
The dedicated invoice dashboard gives you as an advertiser real-time access to all invoices. You can see paid and outstanding invoices at a glance - and download them directly from the platform. This not only makes budget controlling easier, but also gives you a maximum overview for accounting and tax purposes.
Important points for billing:
The Amazon DSP demonstrates its data strength in reporting. The interface provides you with detailed statistics on every campaign. These include impressions, reach, clicks, conversions, sales, ROAS (return on ad spend) and many other key figures. But the tracking goes even further. With the integration of the Amazon Marketing Cloud (AMC), you can analyze all touchpoints of your customer journey - even with individual evaluations that show you which advertising channel and which format really works.
Particularly practical:
Typical metrics in the dashboard:
| KPI | What does the key figure show? |
|---|---|
| Impressions | How often was the ad shown? |
| Click-through rate (CTR) | How many users clicked? |
| Conversion rate | How many users have bought? |
| Turnover (Sales) | What was the total turnover? |
| ROAS | How much revenue per advertising euro? |
| Frequency | How often was a user reached? |
The real strength of Amazon DSP lies in ongoing optimization. You can not only observe how your ads are performing - you can actively adjust them. The algorithm automatically suggests adjustments, but manual intervention is also often worthwhile. The aim is to direct your budget to where it will have the best effect.
Typical optimization levers:
Pro tip: The more you experiment and feed the algorithm with data, the better the results will be. Use all the data from the reporting to continuously improve your targeting and your creative approach.
With these options, you are ideally positioned to manage your campaigns profitably and not waste a single euro. This allows you to get maximum performance out of every campaign and promote your brand in a targeted manner.
If you want to get off to a successful start with Amazon DSP these days, you need more than a quick click on "Apply now". The platform is full of opportunities - but sellers in particular will only benefit if strategy, technology and content work together. In this section, you will find clearly structured, practical tips to help you keep your DSP campaigns on the road to success.
Your success starts long before the first ad: Choose carefully which products you want to advertise via Amazon DSP. Use tools such as the Product Opportunity Explorer, bestseller lists and market analyses to assess demand, competition and margin potential. Pay attention to:
The clearer your focus, the more precisely you can target your targeting and advertising messages.
Your product listings are the engine behind every DSP campaign. Without a convincing product page, you are wasting traffic. Invest in:
Stacvalley recommends never neglecting listing optimization - a top listing converts DSP traffic into real sales.
Success with Amazon DSP also depends on the budget and how wisely it is allocated. It makes sense:
Efficient budget management ensures that you get the maximum ROI out of every euro.
One of the biggest advantages of Amazon DSP is the access to Amazon's data pool including first-party data. Use:
The finer the target group, the higher the relevance and conversion rate of your ads.
Swap generic banners for attention-grabbing creatives tailored to target groups. Focus on:
High-quality, varied advertising media get the most out of every DSP playout.
Don't just watch your campaigns run: Use the Amazon Marketing Cloud for deeper insights. Analyze:
React quickly, continuously optimize target groups, creatives and budgets - and your performance will grow bit by bit.
A strong DSP campaign will fizzle out if there is a problem in the backend. Therefore:
A holistic approach turns campaign success into sustainable growth.
| Range | Best Practice |
|---|---|
| Product selection | Check demand, analyze niche |
| Listing | Keyword optimization, images, A+ content |
| Budget/Campaign | Structured funnel campaigns, monitoring, testing |
| Targeting | First-party data, lookalikes, retargeting |
| Creatives | Strong image/video material, mobile optimization |
| Analysis | Use AMC, measure conversion paths and ROAS |
| Service & Logistics | FBA, customer service, inventory management |
With these best practices, you can cleverly utilize Amazon DSP from start to finish, remain flexible in the face of market changes and profitably expand your brand step by step.
With DSP (Demand Side Platform) and PPC (Pay-per-Click), Amazon offers two very different but cleverly complementary tools for sellers who want to get more out of their advertising budget. Both methods bring your products forward - but how they work, what they cost and what goals you can pursue differ significantly. If you understand the differences, you can use both systems in a targeted manner and combine the advantages in the best possible way.
Both advertising platforms aim to make your products more visible and promote sales. At the heart of both tools is data-driven marketing: Amazon's knowledge of user behavior, shopping history and interests plays a central role, regardless of whether you opt for PPC or DSP. You always benefit from:
Many sellers use both in parallel: PPC ensures fast sales in the store, DSP drives brand building and reach outside of Amazon.
To understand the differences between Amazon DSP and PPC, just take a look at the three most important factors: reach, targeting and pricing model.
| Criterion | Amazon DSP | Amazon PPC |
|---|---|---|
| Where do the ads appear? | On Amazon AND externally (websites, apps, Fire TV, IMDb, Twitch) | Only on Amazon (search, product pages, homepage) |
| Targeting options | Very extensive: demographics, interests, in-market, retargeting, lookalikes, devices, location | Keyword-based, product, category, limited retargeting |
| Pricing model | CPM (cost-per-mille, 1,000 impressions) | CPC (cost-per-click) |
| Minimum budget | Higher, usually from around €3,000-10,000/month depending on the agency or self-service | Flexible - campaigns possible from just a few euros |
| Ideal for | Brand building, reach, full-funnel, retargeting, new customer acquisition | Quick wins, product launches, performance, short-term sales increase |
| Complexity | Higher, often with agency or expert support | Simple setup, ideal for a quick start |
Amazon DSP really comes into its own with full-funnel strategies if you want to reach new target groups or plan targeted retargeting beyond Amazon. The platform enables advertising campaigns on external sites, streaming services, apps or music - a real "frequency amplifier" for your brand.
Amazon PPC remains the first choice when fast results with a manageable budget and low risk are required. Here you control exactly which keyword your ad is visible for and only pay for real clicks.
It's worth doing a quick reality check so that you don't start without a plan:
Many sellers only recognize which system currently provides the greatest boost through testing. A clever combination of both tools actually works most efficiently: First PPC for traffic and sales push in the store, then DSP to build reach, new customers and for cross-channel retargeting.
Photo by Tobias Dziuba
The best things often come when you combine them: Use Amazon PPC to get instant visibility, push targeted product pages and boost your conversion rate. Then use Amazon DSP to retarget visitors, capture leads outside of Amazon or build your brand awareness. This is how you get the most out of seller-friendly budgets.
Conclusion on the comparison? If you manage the mix of both tools wisely, you can build a real growth engine - and are no longer solely dependent on traffic on Amazon.
Amazon DSP brings sellers enormous opportunities, but as with any powerful tool, there are also typical hurdles. Many sellers experience stumbling blocks at the beginning when it comes to budget, technology or campaign management. The good news is that almost every challenge has a practical solution. Here you will find the most important pain points from practice - plus tips on how to master them cleverly.
Many sellers initially underestimate how technical and data-driven Amazon DSP actually is. The platform requires a deep understanding of targeting, creative, budget management and ongoing analysis. Without experience, campaign management can quickly become overwhelming.
Solution:
It is best to start with support from professionals, for example experienced agencies such as Stacvalley. Use workshops and tutorials to quickly gain routine. With self-service offers, you can later manage your campaigns yourself - or you can have your campaigns managed directly by Amazon-certified partners. This gives you direct access to best practices and avoids expensive false starts.
Especially for sellers with a limited advertising budget, the entry costs can be a deterrent. If you want to start directly with Amazon DSP with the managed service, you often have to reckon with at least 10,000 to 30,000 euros.
Solution:
Many experienced agencies offer access to Amazon DSP from a monthly budget of around 3,000 to 5,000 euros. This allows you to test your first campaigns, collect data and gain experience - without high initial costs. Divide your total budget sensibly between funnel phases and campaign goals in order to gain valid learnings as quickly as possible.
The heart of Amazon DSP, precise targeting, is both a curse and a blessing. Those who set target groups too broadly or too narrowly often waste budget - or have too little reach.
Solution:
Test different target group segments and combine in-market, retargeting and lookalike audiences. Carry out regular A/B tests to find the most profitable combinations. Constantly analyze which audiences actually convert - and optimize step by step. Use the data from the Amazon Marketing Cloud to delve deeper into the customer journey.
Amazon DSP delivers masses of data, from impressions and clicks to ROAS. Many sellers find it difficult to make the right decisions and prioritize meaningful KPIs.
Solution:
Define clear goals before starting the campaign. Look not only at classic metrics such as clicks, but also at conversions, sales and new customer share. Make the most important KPIs visible with individualized dashboards. Work specifically with the Amazon Marketing Cloud to discover hidden insights for conversion optimization.
With so many different forms of advertising, mass alone will not get you anywhere. Many sellers rely on overly generic creatives or use the same banners for all target groups.
Solution:
Customize ad formats and designs for each target group. Work with variable, appealing creatives that appeal to real buying motives. Change formats depending on the funnel stage: branding videos for awareness, dynamic e-commerce ads for the conversion area. Regularly test new messages and visuals to increase click and purchase rates.
Amazon DSP thrives on constant adaptation. Those who simply let campaigns run and rarely make adjustments are burning budget and wasting potential.
Solution:
Schedule weekly check-ins to adjust bid strategies, budgets and target groups. Use automation tools for routine tasks, but keep important decisions such as audience optimization and creative changes in your hands. This will keep your campaign performing consistently.
| The challenge | Quick solution |
|---|---|
| Complex platform control | Use advice or agency, further training |
| High start-up budget | Agency models from €3,000-5,000, funnel test |
| Target group targeting | Use segmentation, A/B tests, data analysis |
| Flood of data in reporting | Define clear KPIs, set up dashboards |
| Weak ad formats | Target group-specific creatives, format mix |
| Lack of optimization | Ongoing monitoring, adjustments, automation |
By paying attention to these typical pitfalls and taking targeted countermeasures, you can take the performance of your Amazon DSP campaigns to the next level.
Amazon DSP now takes targeted and data-based advertising to a new level. Sellers benefit from exclusive buyer signals, impressive reach and a variety of formats that can be used flexibly for brand building, retargeting and sales. Access to Amazon's extensive first-party data helps to target budgets and ensure that every euro is spent precisely.
Companies that use DSP strategically and continuously create sustainable competitive advantages. They reach new target groups, increase brand awareness and use budgets more efficiently than with conventional advertising tools.
Combining Amazon DSP with other Amazon advertising tools maximizes the effects in the entire funnel and builds a multi-layered and stable brand. Now is the ideal time to test Amazon DSP as an integral part of your advertising strategy and take the next steps towards growth.
Thank you for your interest - feel free to share your questions or experiences about Amazon DSP in the comments!
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