Amazon Advertising Glossary
What is Amazon DSP?
Amazon DSP (Demand-Side Platform) is Amazon's programmatic advertising platform that allows advertisers to buy display, video, and audio ads both on and off Amazon. Unlike Sponsored Ads (PPC), DSP uses Amazon's first-party shopping data to reach audiences across Amazon-owned properties (Fire TV, IMDb, Twitch) and thousands of third-party websites.
How Amazon DSP Differs from Sponsored Ads (PPC)
The most important distinction is that Sponsored Ads capture existing demand while DSP creates new demand. They serve fundamentally different roles in the advertising funnel:
| Feature | Sponsored Ads (PPC) | Amazon DSP |
|---|---|---|
| Pricing Model | Cost-per-click (CPC) | Cost-per-thousand impressions (CPM) |
| Ad Placement | Amazon search results and product pages only | Amazon properties + thousands of third-party sites |
| Ad Formats | Text + product image ads | Display, video, audio, OLV |
| Targeting | Keywords and product targeting | Behavioral, demographic, in-market, lookalike audiences |
| Funnel Stage | Bottom-funnel (high purchase intent) | Full-funnel (awareness through conversion) |
| Requires Amazon Seller? | Yes | No (any advertiser can use DSP) |
| Minimum Spend | $1/day | $10,000–$15,000/month recommended |
Who Should Use Amazon DSP?
Amazon DSP is not for every advertiser. It is most effective for brands that have already established a strong Sponsored Ads foundation and are ready to scale beyond search-based advertising. The ideal DSP candidate:
Brands Scaling on Amazon
If your Sponsored Ads campaigns are well-optimized and you have reached diminishing returns from PPC alone, DSP opens new inventory and audiences. Brands spending $15,000+ per month on PPC are typically ready for DSP.
Brand Awareness Campaigns
Launching a new product or entering a new category? DSP's video and display formats can build awareness at scale before shoppers even begin searching. Fire TV and Twitch placements reach millions of engaged viewers.
Non-Amazon Sellers
DTC brands, SaaS companies, and service businesses can all use Amazon DSP to reach audiences based on Amazon's shopping data — even if they do not sell on Amazon. This is one of DSP's most powerful and underutilized capabilities.
Retargeting and Conquesting
DSP excels at retargeting shoppers who viewed your products but did not purchase, and at conquesting competitor audiences. These tactics leverage Amazon's deterministic purchase data, which is more reliable than cookie-based retargeting.
Amazon DSP Campaign Types
Display Ads
Static and dynamic banner ads served across Amazon.com, IMDb, Goodreads, and thousands of third-party websites and apps. Dynamic display ads automatically pull product images, prices, and reviews from your Amazon listings, keeping creative always up to date.
Streaming TV (STV) / Fire TV Ads
Full-screen, non-skippable video ads served on Fire TV, Amazon Freevee, and third-party streaming apps. These are premium placements that reach cord-cutters and streaming audiences with 95%+ video completion rates.
Online Video (OLV)
In-stream and out-stream video ads served across Amazon's publisher network. These are shorter-form videos (typically 15–30 seconds) that play within web and app content. OLV is more affordable than STV and effective for mid-funnel consideration.
Audio Ads
Ads served through Amazon Music's ad-supported tier. Audio ads reach listeners during moments when visual ads cannot — while driving, exercising, or cooking. They include a companion display banner for click-through.
DSP Targeting Options
Amazon DSP's targeting advantage is its access to Amazon's first-party shopping data — actual purchase behavior, not inferred interests. Key targeting options include:
In-Market Audiences
Reach shoppers actively browsing and buying in specific product categories. Amazon defines these audiences based on recent browsing and purchase signals.
Lifestyle Audiences
Target consumers based on long-term shopping patterns and interests (e.g., "health enthusiasts" or "tech early adopters").
Retargeting (Views / Purchases)
Re-engage shoppers who viewed your product detail pages, added to cart but did not purchase, or purchased previously (for repeat purchases).
Lookalike Audiences
Find new customers who share characteristics with your existing buyers. Amazon builds these models from your actual purchaser data.
Competitor Conquesting
Target shoppers who have viewed or purchased from specific competitor ASINs or brands. One of DSP's most powerful offensive tactics.
AMC Custom Audiences
With Amazon Marketing Cloud integration, create highly specific audiences based on cross-channel exposure, purchase frequency, lifetime value, and custom SQL queries.
How Much Does Amazon DSP Cost?
Amazon DSP pricing is based on CPM (cost per thousand impressions) rather than CPC. There is no fixed minimum, but practical minimums depend on your approach:
Through an Agency Partner
Working with an Amazon Ads partner like Headline is the most common approach. Most agencies recommend a minimum of $10,000–$15,000 per month in DSP spend to generate meaningful data and results.
Typical CPM range: $2–$8 for display, $15–$35 for streaming TV/video
Self-Service Access
Amazon offers self-service DSP access for advertisers who want to manage campaigns directly. This requires in-house programmatic expertise and is typically used by larger brands with dedicated ad ops teams.
Note: Self-service access has lower minimums but requires significant expertise to operate efficiently.
At Headline, our DSP clients typically see a 2–5x return on DSP spend when measured holistically through Amazon Marketing Cloud, which captures the full-funnel impact including organic sales lift and new-to-brand customer acquisition.
Ready to Explore Amazon DSP?
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