DSPDemand-Side Platform
Amazon DSP is a programmatic advertising platform that lets sellers and brands buy display and video ad inventory both on and off Amazon, targeting audiences based on Amazon's purchase data.
What is DSP?
Amazon DSP (Demand-Side Platform) allows advertisers to programmatically buy display, video, and audio ads across Amazon-owned properties (Amazon.com, IMDb, Twitch, Fire TV) and third-party websites and apps. Unlike Sponsored Products (which targets keywords inside Amazon search), DSP targets audiences — people defined by their shopping behaviours, demographics, and purchase history on Amazon.
The core advantage of DSP is access to Amazon's first-party purchase data, which is among the richest retail data sets in the world. You can target shoppers who have purchased in your product category in the past 30 days, people who viewed your product detail page but didn't buy, or lookalike audiences modelled on your best customers.
DSP campaigns run on CPM (cost per thousand impressions) rather than CPC. This makes them more suited to awareness and retargeting goals than direct-response conversion goals. A brand running a new product launch might use Sponsored Products to capture existing demand and DSP to build awareness among in-market shoppers who haven't found the product yet.
Why it matters for sellers
DSP extends your advertising reach beyond Amazon search. Most shoppers don't find products through search alone — they're influenced by ads they see while browsing news sites, watching YouTube, or streaming on Fire TV. DSP lets you place your brand in front of Amazon shoppers while they're consuming content elsewhere.
Retargeting via DSP is particularly powerful. You can show ads to people who viewed your product page but didn't purchase — a warm audience that has already demonstrated interest. Amazon data shows retargeting campaigns achieve significantly higher conversion rates than cold prospecting campaigns.
How to use DSP
DSP is typically managed by Amazon Advertising or approved agencies. Minimum managed-service spend is $35,000/month; self-service access is available through select agencies at lower minimums. Start with retargeting campaigns targeting product page viewers and category shoppers before scaling to full-funnel prospecting.
Measure DSP performance using total attributed sales (including halo effects on related products) rather than direct ROAS alone. DSP's value is often in brand building and assisted conversions that don't show in last-click attribution.
Real-world example
A cookware brand launches a new product. They run Sponsored Products to capture search demand and DSP retargeting to reach people who viewed the listing but didn't buy. The retargeting campaign achieves a 6.2× ROAS at $8,000 spend, and the product reaches #3 in its subcategory within 45 days of launch — significantly faster than previous launches without DSP support.
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Frequently asked questions about DSP
What is the minimum budget for Amazon DSP?
Managed-service DSP with Amazon requires around $35,000/month minimum. Self-service DSP through Amazon advertising agencies can start lower, often $5,000–10,000/month. It's generally not cost-effective for sellers under $1M annual Amazon revenue.
What is the difference between Sponsored Ads and DSP?
Sponsored Ads (Sponsored Products, Brands, Display) run on a CPC model and target keywords or products within Amazon search. DSP runs on a CPM model and targets audiences both on and off Amazon. Sponsored Ads capture existing demand; DSP creates and retargets demand.
Can Shopify brands use Amazon DSP without selling on Amazon?
Yes. Amazon DSP's off-Amazon inventory can be used by any brand to reach Amazon audiences on third-party sites. However, on-Amazon ad placements require an Amazon seller or vendor account.