How to Use Amazon DSP for Advanced Advertising Strategies

Amazon DSP (Demand Side Platform) is a powerful tool that allows brands to run programmatic display and video ads both on and off Amazon. Unlike traditional Amazon PPC campaigns, DSP enables advertisers to target audiences beyond keyword-based searches, offering advanced audience segmentation, retargeting, and brand awareness opportunities. Using Amazon DSP effectively can significantly enhance your marketing strategy, drive higher conversions, and maximize return on ad spend (ROAS).

Understanding Amazon DSP

Amazon DSP is different from Amazon Sponsored Ads. While Sponsored Products, Sponsored Brands, and Sponsored Display ads appear within Amazon search results or product pages, DSP allows you to display programmatic ads across Amazon-owned platforms (like Fire TV, IMDb, and Kindle) as well as third-party websites and apps. This enables broader reach and the ability to retarget potential customers at different stages of the buying journey.

DSP is best suited for established brands looking to scale their advertising efforts, as it requires a higher budget commitment than standard PPC campaigns. Amazon recommends a minimum budget of $35,000 per month for self-service DSP campaigns, though managed-service options require even higher investments.

Key Features of Amazon DSP

•Audience Targeting: Unlike PPC, which targets users based on keywords, DSP allows you to target users based on shopping behavior, demographics, and purchase intent.

•Retargeting Capabilities: You can re-engage customers who viewed your product, added it to their cart, or purchased similar items.

•Omnichannel Reach: DSP ads can appear on Amazon sites, third-party websites, mobile apps, and Amazon-owned platforms like Twitch and Fire TV.

•Display & Video Ads: DSP supports banner ads, dynamic e-commerce ads, and video ads, providing brands with multiple creative options.

•Lookalike Audiences: Amazon DSP allows advertisers to create lookalike audiences based on past purchasers, expanding reach to new potential customers.

Advanced Advertising Strategies with Amazon DSP

1. Leverage Retargeting to Re-engage Shoppers

One of the biggest advantages of Amazon DSP is the ability to retarget high-intent shoppers who have interacted with your products but haven’t completed a purchase. Retargeting helps recover lost sales by keeping your brand top of mind.

Retargeting Strategies:

•Product View Retargeting: Show ads to shoppers who viewed your product but didn’t buy.

•Add-to-Cart Retargeting: Target customers who placed your product in their cart but didn’t check out.

•Past Customer Retargeting: Remarket to customers who have purchased from you before to encourage repeat sales.

✅ Example: A shopper views a high-end coffee maker but leaves without buying. With DSP, you can serve them a retargeting ad offering a discount or highlighting customer reviews to encourage them to return and complete the purchase.

2. Use Amazon’s In-Market and Lifestyle Audiences for Better Targeting

Amazon DSP provides advanced audience segmentation, allowing advertisers to target in-market and lifestyle audiences based on shopping behavior.

•In-Market Audiences: Shoppers actively looking for similar products.

•Lifestyle Audiences: Users with broader interests related to your category.

✅ Example: If you sell fitness supplements, DSP can target shoppers who have recently browsed protein powders, athletic apparel, or fitness equipment, increasing the likelihood of conversions.

3. Expand Your Reach with Lookalike Audiences

Lookalike audiences help you find new customers who share similar traits with your existing buyers. By analyzing Amazon’s vast shopper data, DSP can create an audience that mimics your best customers, improving targeting efficiency.

✅ Example: If your current buyers are women aged 25-40 who frequently buy skincare products, Amazon DSP can identify and target a broader audience with similar shopping behavior.

4. Utilize Cross-Channel Advertising for Brand Awareness

Amazon DSP allows you to run ads beyond the Amazon marketplace, appearing on news websites, social media, streaming services, and mobile apps. This helps brands expand their reach and build awareness outside of Amazon’s ecosystem.

✅ Example: A new electronics brand can use Amazon DSP to run video ads on Fire TV or Twitch, increasing visibility among tech enthusiasts before they even begin shopping.

5. Optimize Campaign Performance with Dynamic E-commerce Ads

Amazon DSP offers dynamic e-commerce ads, which automatically update ad content based on real-time shopper behavior. This ensures the most relevant product is displayed to each potential customer.

•Personalized Ad Delivery: Automatically showcases different product variations based on customer preferences.

•Price and Discount Updates: Ads reflect the latest pricing and promotional offers.

•A/B Testing Capabilities: Test multiple ad creatives to identify the best-performing versions.

✅ Example: If a shopper browses multiple models of wireless headphones, Amazon DSP can dynamically display the specific models they viewed, increasing relevance and conversion rates.

6. Maximize ROI with Bid Optimization and Budget Control

Since DSP operates on a programmatic bidding model, optimizing bids and budgets is crucial for maximizing ad efficiency.

Best Practices for Bid Optimization:

•Adjust bids based on audience intent – Bid higher for retargeting campaigns since these users are closer to converting.

•Monitor ad frequency – Avoid showing the same ad too many times, which can lead to ad fatigue.

•Use ACoS and ROAS metrics – Evaluate performance regularly and adjust bids accordingly.

✅ Example: If a campaign targeting first-time visitors has a high cost per click but low conversions, reallocating budget to retargeting campaigns can improve ROI.

7. Leverage Amazon DSP Video Ads for High Engagement

Amazon DSP supports video advertising, which is a powerful tool for brand storytelling and increasing engagement. These ads can appear on Fire TV, IMDb, Twitch, and third-party websites.

Benefits of Amazon DSP Video Ads:

•Higher engagement rates compared to display ads.

•Ability to showcase product benefits and features in a more immersive format.

•Stronger recall and brand recognition.

✅ Example: A luxury skincare brand can run video ads on Fire TV, demonstrating how to use its products while featuring customer testimonials to build trust.

Final Thoughts

Amazon DSP is a powerful tool for brands looking to scale their advertising efforts beyond PPC. By leveraging advanced targeting, retargeting strategies, cross-channel advertising, and programmatic bid optimization, advertisers can maximize visibility, improve conversions, and achieve higher ROAS.

While Amazon DSP requires a larger budget, its ability to reach high-intent shoppers, retarget lost customers, and expand brand awareness makes it a valuable investment for serious advertisers.