Everything You Should Know About Amazon DSP Advertising!

Nov 21, 2022

What is Amazon DSP Advertising?

Sooner or later, every seller on Amazon understands the importance of external promotion in reaching new audiences. Amazon Attribution is a successful extension of other external Amazon solutions like Amazon DSP.

Amazon DSP has a complex structure that differs from Amazon PPC. Today, we will discover the specifics of this ad type and find out — how does Amazon DSP work?


Table of content:


What is Amazon DSP Advertising?


So what does DSP stand for Amazon? It is a platform for buying display, audio, and video ads that allow sellers to reach targeted audiences on Amazon and third-party sites.

A feature of the platform is that it uses not the usual PPC, where payment is made only per click, but CPM, which means cost per 1000 impressions.


Amazon DSP Placements


Where do Amazon demand side platform announcements appear? You can advertise:

  • on Amazon pages, including the home page, product listing, deals page, and search results page;
  • on Amazon-owned sites, including IMDb, Twitch.tv, Audible, and Goodreads;
  • on Amazon devices, including Kindle, Fire, and Fire TV;
  • on Amazon Apps;
  • all over the internet.


Advantages of Amazon DSP Ads


Amazon DSP is not just another name for Sponsored Display Ads but a different type of advertising. Yes, it uses placements you already know, but many of its features are unique and can surprise you.

Broad Targeting

The more targeting options, the wider audience you reach. Amazon DSP advertising provides a more varied range of targeting settings than traditional Amazon PPC. You can also look at Lifestyle, In-Market, Contextual, Remarketing, Advertiser- and Lookalike Audiences. Stay tuned as we will discover each type of targeting next.

Cross-Channel Campaigns

Amazon DSP ads allows you to create cross-channel campaigns, engaging users in cross-channel purchases. It means that prospects can see ads wherever they are, and from any of these resources they are redirected to a platform to make a purchase.

Access to Amazon DSP Inventory

Amazon publisher services, Amazon-owned and operated properties, and third-party exchanges provide valuable insights into customer behavior. Access to the Amazon DSP gives you detailed information, which you can use when setting up your targeting.

Statistics and Analytics

Access to information about the audience and buying behavior allows sellers to reach a relevant audience and determine at what stage customers abandon a purchase. You will see cart additions, purchases, and other customer activities before, during, and after the campaign.

Ad Specifications

Advertising on various platforms and devices means different requirements regarding ad sizes and formats, as well as creative guidelines. Amazon provides all the necessary specifications, conveniently organized by resources you can advertise.

Brand Awareness

Amazon demand side platform increases not only sales but also awareness of your brand. Unlike Sponsored Brands, your company becomes well-known far beyond the marketplace. In addition, you can attract customers interested in the competitor’s product and those who have not visited Amazon for a long time.


Amazon DSP Targeting Variations

What types of targeting are available to sellers with Amazon DSP advertising? Let’s figure it out.


This targeting type allows you to reach those who were going to buy products in your subcategory in the last 30 days.


Show your ads to users who share the same lifestyle as your customers and those who are interested in similar product categories.


Contextual targeting is about people who have recently searched and viewed similar products.


Remarketing targets prospects who have previously viewed or purchased your or competitors’ products.

Audience Lookalike

Try Audience Lookalike and attract users with buying behavior similar to your existing or competitors’ customers.

Advertiser Audiences

This type of targeting covers groups of prospects provided by the seller.


Amazon DSP Creatives

Creative assets variability includes formats such as a custom image, a video, and a review, available for products with a rating above 3.5 and at least 15 reviews. You can find parameters such as weight and file format, creative size, and other recommendations here.

Responsive eCommerce is one of the Amazon DSP creative types that allows you to select up to 10 supported ad sizes on and off Amazon.

However, as with any advertisement, it is essential to make your ad attractive to prospects. So do not forget to study your target audience and conduct A/B testing.


Amazon DSP Ads Types

You can choose from four available ad formats based on your goals and capabilities:


Static Ad

Static ads provoke the audience into instant actions — with the help of an image, a brand name, a logo, and a spacious call to action.

By clicking on ads, the user is taken to your website, listing, or Amazon brand store.


Video Ad

One of the most effective advertising formats. With video, you can demonstrate the product, its functions, and application and also evoke the right emotions. Upload videos or use the Video Builder templates — you will find many options for music and animation.

Clicking on a video ad takes the prospect to your website or Amazon listing, where they can learn more about the product and buy it.


Dynamic Ad

The main secret of dynamic ad efficiency is that the content is selected automatically based on the target audience. It is very convenient as sellers do not need to study DSP reports and select creatives themselves.

From a dynamic ad, users get to where they can view the product in detail — the website, listing, or brand store on Amazon.

Over-The-Top (OTT) Video Ad

This advertisement is created to increase brand awareness broadcast on television, such as the Amazon Fire TV Stick.

OTT video ads do not redirect viewers anywhere.

Amazon DSP Costs


Are you standing? Then better sit down. To work with Managed-Service Amazon DSP, your minimum advertising budget must be at least $35,000, and the exact amount varies by ad format, placement, and region. For sellers accustomed to PPC, such access price can be a real shock.


Amazon DSP Advertising vs. Sponsored Display Ads


If you still do not understand the Amazon DSP meaning and the difference between it and Sponsored Display Ads, let’s review the main differences again.

First, targeting. Sponsored Display Ads allow you to target remarketing and audience interests. Amazon DSP has six targeting capabilities, which we have talked about above.

Secondly, advertising placements. Sponsored Display Ads, although not limited to Amazon, are significantly inferior to the capabilities of Amazon DSP.


Final Word


Before starting with Amazon demand side platform, you must choose between Managed-Service and Self-Service.

Managed-Service involves full support of Amazon with consultations, ideas, data, and advertising plans. At the same time, your advertising budget must include at least $35,000.

Also, there is a Self-Service option where you can work with a certified Amazon advertising agency. Profit Whales is one of those as an Advanced Amazon Ads Partner. Our experts will take over the DSP management with advertising costs of $5,000. At the same time, we will fully engage in setting up and managing your campaigns.

Contact us to take your Amazon sales to the next level.

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