Anyone who grows on Amazon will eventually reach the limits of traditional PPC advertising. At that point, the term Amazon DSP will start popping up everywhere. Many people know that there is a lot of potential here, but they don't know exactly how it works or when it's worth getting started.
This guide explains in simple terms and without technical jargon what Amazon DSP is, how it differs from PPC, which strategies really make sense, and when it becomes exciting for you as an Amazon seller.
Unfortunately, Amazon uses the term DSP for two completely different topics. This often causes confusion, especially when you are new to the subject.
There are:
This article focuses solely on the demand-side platform, i.e., the advertising system.
In short, Amazon DSP is a programmatic marketing tool for display advertising that allows you to target shoppers based on their behavior on and off Amazon.
This simple comparison helps to put things into perspective:
A concise description:
Amazon DSP is display advertising, the other side of the PPC coin.
Amazon DSP is purely display advertising. This includes:
These ads can be displayed in many formats and sizes, including:
For sellers who already sell on Amazon, there is a handy feature:
You can use what are known as responsive e-commerce ads. Amazon automatically pulls images and data from your product detail page and adapts the design to different formats. You don't have to create a separate banner for each size.
Ad formats range from small tiles to large banners. The exact format is less important than the question: Who are you reaching with it and at what point in their purchasing decision?
To use DSP correctly, it helps to make a clear comparison with classic Amazon PPC advertising.
| Feature | Amazon PPC | Amazon DSP |
|---|---|---|
| alignment | Search queries, keywords | Target groups based on shopping and surfing behavior |
| logic | User actively searches for a term | Users are targeted based on their behavior and interests |
| Billing | CPC (cost per click) | CPM (cost per thousand impressions, you pay for visual contacts) |
| Placement | Especially on Amazon | On and off Amazon |
| Focus | Performance right at the moment of search | Combined reach, retargeting, brand building, and performance |
The most important point:
With Amazon DSP, you can build target groups based on behavior related to any product on Amazon. Not just your own products.
Amazon DSP is not only for brands that sell on Amazon. Brands without an Amazon store can also use it to build target groups. However, this article focuses on sellers and brands that actively offer their products on Amazon.
In order for DSP to work effectively, you should fulfill a few basic requirements.
A simple checklist helps with the assessment:
In summary:
First, set up PPC properly, then use DSP to better exploit existing potential and reach new target groups.
The biggest difference between DSP and PPC is the way you address your buyers. You don't target search terms, but people and their behavior.
There are two main types of targeting:
Amazon provides thousands of predefined target groups in the DSP account, for example for specific interests or life situations. However, working with custom audiences is more exciting for sellers.
With Custom Audiences, you can target people who, for example:
You can set a lookback window for all these signals, i.e., how far back Amazon should look into the past. Typical time periods are, for example, 14, 30, or 60 days.
One key feature that makes DSP special is
. You can target views and exclude purchases. This means you only target people who have seen your product but haven't bought it yet.
Some proven strategies:
The big advantage:
You are not limited to your own products. You can build target groups based on any product on Amazon and thus advertise very specifically in niches.
In addition to target groups based on past behavior, there is also contextual targeting. Here, Amazon looks at what users are currently viewing or where they are moving.
For example, you can:
The difference to audience targeting:
In practice, you can combine both to precisely target your desired audience. For example, people who are currently browsing a specific category and have viewed similar products in recent days.
Another advantage of DSP over pure PPC advertising is its reach. Your ads are not only displayed where someone searches for a term, but everywhere Amazon purchases advertising space.
With Amazon DSP, you can display your ads on:
The interplay between onsite and offsite is particularly exciting. A customer may first see your product on an external site, click on the ad, land on Amazon, think about it, and then see the product again later in a retargeting ad.
For many sellers, responsive e-commerce ads are an easy way to get started. All you need is an ASIN. Amazon pulls:
and automatically creates ads in up to 18 different sizes. These adapt to the respective space, both on and outside of Amazon.
This allows you to get started quickly without having to design a complete banner set. This is particularly helpful during the test phase.
Amazon DSP also offers the option of placing video ads, for example:
Video is well suited for brand building, for products that require explanation, or for demonstrating more complex value propositions. In many accounts, video is a separate expansion step after classic display campaigns are running well.
Unlike PPC, you cannot simply activate Amazon DSP in Seller Central. Access is completely separate from the usual advertising account.
This means:
You either need direct access from Amazon or you need to work with an agency that already has DSP access.
If you want to book DSP directly through Amazon as a managed service, high minimum budgets usually apply. Typical figures range between $30,000 and $50,000 in advertising budget.
For many brands, this is too high, especially at the beginning. In return, however, Amazon takes over the entire campaign setup and ongoing support.
It is much more common to go through an agency that already has a so-called DSP seat. This access allows campaigns for multiple clients to be managed.
Advantages of this approach:
It is also important to note that DSP is no substitute for a solid foundation. If you don't have a clear PPC account, optimized product pages, and hardly any reviews, DSP will usually just burn through your budget.
A commonly used guideline:
DSP budget approximately 20 to 25 percent of your PPC budget.
Example:
You spend $20,000 per month on PPC. Then $4,000 to $5,000 for DSP would be a typical starting point.
PPC remains the foundation for placements with high demand, while DSP helps you:
Amazon DSP is not a magic formula, but it is a very powerful tool when the fundamentals are right. You don't work with search terms, but with target groups based on real data on views, purchases, and search behavior.
If you already have a stable PPC setup, well-rated products, and a sufficient advertising budget, you can use DSP:
The sensible approach almost always involves starting with clean PPC and optimized product pages, followed by a structured introduction to DSP with a clear goal and an appropriate budget. If you keep this in mind, Amazon DSP is a powerful tool for taking the next step in your growth on Amazon.
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