Amazon DSP (Demand-Side Platform): Beginner-Friendly Overview

What it is and why it matters

Amazon DSP (Demand-Side Platform) is a programmatic ad-buying solution that enables advertisers to purchase display, video, and audio inventory both on Amazon properties (like Amazon.com, Fire TV, and IMDb) and across many third-party sites and apps. For businesses of all sizes, it’s a way to combine Amazon’s rich shopper data with programmatic reach to support awareness, consideration, and conversion goals.

How Amazon DSP works, in simple terms

Programmatic buying means ads are bought and optimized automatically using software rather than through manual negotiations. With Amazon DSP you define your target audiences, set campaign goals and budgets, upload creative assets, and let the platform bid for impressions in real time based on your rules and objectives. Amazon’s data — including shopping signals and behavioral insights — informs audience targeting and optimization.

Types of inventory and placements

• Amazon-owned placements: product-detail pages, Amazon home pages, Fire TV, IMDb, and other Amazon-owned environments.
• Amazon-managed publisher inventory: premium direct-sold deals and private marketplaces that Amazon makes available programmatically.
• Third-party exchanges: display, mobile app, and video inventory outside Amazon’s owned properties through programmatic partners.

Common campaign goals and use cases

• Brand awareness: reach large audiences with video or large-format display on TV and high-impact placements.
• Consideration: serve product-rich ads to users who have shown interest in related categories or products.
• Lower-funnel conversion and retargeting: reconnect with shoppers who viewed product detail pages or added items to cart but did not purchase.
• Cross-device and connected TV (CTV): reach audiences watching Fire TV and other connected devices for upper-funnel storytelling.

Audience targeting options

Amazon DSP offers a mix of Amazon-first and programmatic targeting tools. Examples include:

• First-party shopping signals: in-market audiences, product interest, and purchase history derived from Amazon activity.
• Behavioral and demographic targeting: age, household income, device type, and interests where available.
• Retargeting: reach users who visited specific product pages or placed items in carts.
• Lookalike and audience expansion: reach new users who resemble your best customers.

Buying models and account options

Amazon DSP is available in two primary ways: a managed service (where Amazon or an appointed agency runs campaigns) and a self-service platform for eligible advertisers. Pricing is typically CPM-based (cost per thousand impressions) and can include fixed-price deals, private marketplace (PMP) auctions, or open-auction buying across exchanges.

Measurement and attribution

Amazon DSP supports metrics that span view-through and click-through conversions, reach and frequency, video completions, and attribution to on-Amazon sales where applicable. Advertisers can use Amazon’s measurement tools and integrate third-party measurement providers to validate campaign performance. For retailers selling on Amazon, the platform can help tie upper-funnel activity to on-site sales signals.

How it compares to other Amazon ad options

Amazon also offers Sponsored Products, Sponsored Brands, and Sponsored Display ads that are keyword- or product-targeted and focused on placements within Amazon shopping results. Amazon DSP complements these by enabling broader programmatic reach beyond search and shopping surfaces—especially useful for awareness and cross-platform campaigns.

Who benefits from Amazon DSP?

Brands that want to: reach audiences outside of search, use Amazon’s shopper data for precise targeting, run cross-device campaigns including CTV, and coordinate upper-funnel and lower-funnel activity. Both direct-to-consumer brands and larger advertisers can benefit, though some advanced features and the self-service path may require minimum spend or eligibility.

Simple example

Imagine a mid-size outdoors brand launching a new camping stove. They use Amazon DSP to run a 30-second CTV video on Fire TV to build awareness among outdoors enthusiasts, layer in in-market audience targeting for camping gear, and then retarget users who visited the product page with a display ad offering a limited-time discount. The result: broader awareness followed by measurable on-site interest and conversions.

Key takeaways for beginners

1. Amazon DSP gives you programmatic access to Amazon’s shopper signals plus outside inventory for display, video, and audio campaigns.
2. Use it when you need broader reach, cross-device campaigns, or advanced audience targeting informed by Amazon data.
3. Decide between managed service or self-service based on your budget, expertise, and campaign complexity.
4. Measure with both Amazon metrics and third-party tools to understand full-funnel impact.

For a beginner, Amazon DSP can sound complex, but the core idea is straightforward: use programmatic ad buying powered by Amazon’s data to reach the right people with the right creative, across Amazon properties and the wider internet.