The Ultimate Guide to Amazon DSP: Mastering Programmatic for Full-Funnel Success

In 2024, Amazon reported $56.21 billion in revenue generated through advertising sales. That’s a 20% increase from the previous year. What’s more, Amazon accounted for 11% of total digital ad spending worldwide. This growth is a clear signal that brands are doubling down on Amazon’s first-party data and programmatic capabilities.

Enter Amazon DSP. 

Amazon DSP (demand-side platform) is one of the most powerful tools in digital advertising. It allows brands to programmatically buy display, video, and audio ads both on and off Amazon. Amazon DSP taps into Amazon’s unparalleled first-party data, which allows it to offer deep audience insights and cross-channel reach. Understanding Amazon DSP is crucial for any brand that’s looking to expand their digital marketing footprint. 

In this guide, we break down everything you need to know to leverage Amazon DSP to its full potential. From foundational concepts and ad formats to targeting tactics and measurement strategies, this is your one-stop resource. 

• What Is Amazon DSP?
• Who Should Use Amazon DSP?
• How Does Programmatic Advertising Work?
• Audience Targeting and Campaign Strategy With Amazon DSP
• Amazon DSP Ad Formats and Creative Options
• Core Components of Amazon DSP
• Amazon DSP Campaign Setup and Optimization
• How to Measure Amazon DSP Performance
• Amazon DSP Ecosystem and Tools
• DSP Access: Seller Central vs. Vendor Central
• Common Amazon DSP Mistakes to Avoid
• Amazon DSP FAQ

Amazon DSP (demand-side platform) is Amazon’s powerful programmatic advertising engine that helps brands reach highly targeted audiences at scale, both on and off Amazon. With access to Amazon’s goldmine of first-party shopper data and expansive media inventory, DSP empowers marketers to serve dynamic ads across Amazon.com, Fire TV, IMDb, Twitch, and thousands of third-party sites and apps. 

Unlike Amazon Sponsored Display, which focuses on product-level ads within the Amazon marketplace, DSP offers true omni-channel reach. It uses real-time bidding (RTB) technology to deliver personalized ad experiences across the open web, streaming platforms, and mobile apps, which gives brands deeper audience control and full-funnel visibility. 

What Makes Amazon DSP So Powerful?

Amazon DSP is powerful because it offers an unmatched combination of advanced targeting capabilities, broad off-Amazon reach, flexible ad formats, and full creative control, all powered by Amazon’s rich first-party data.

• Advanced targeting: Tap into Amazon’s rich first-party data for precision targeting based on shopping behavior, demographics, lifestyle, and intent. “A lot of people don’t realize how granular you can get with Amazon advertising because maybe they are used to an external advertising platform that is more audience-based,” said Destaney Wishon, CEO and co-founder of Better AMS, in an interview with eMarketing Association. “[On Amazon], you can get as specific as one keyword, and you can control, on the page, where you’re showing up, whether it’s the No. 1 sponsored ad spot or the product detail page. So with that level of control, it allows us to get really good at budget distribution.”
   

• Off-Amazon reach: Serve ads across third-party websites, mobile apps, and connected TV platforms.
   

• Omni-channel formats: Run display, audio, online video (OLV), and OTT ads to engage users across multiple touchpoints.
   

• Creative control: Customize and test creative for each funnel stage, with control over ad placements, formats, and frequency caps. 

Whether you’re promoting products sold on Amazon or building brand awareness beyond it, DSP gives you the tools to orchestrate a full-funnel strategy that drives performance across the digital ecosystem. 

Amazon DSP isn’t just for retail giants; it’s built for ambitious brands that are ready to scale with precision. Whether you’re selling products on Amazon or not, if your goal is high-impact, data-driven advertising, DSP should be on your radar. 

DSP is ideal for: 

• Brands with at least $10,000 monthly ad spend that are looking to break out of walled gardens and reach shoppers at every stage of the funnel. 

• Amazon sellers and vendors that are ready to expand beyond Sponsored Products and drive deeper engagement. 

• Non-endemic brands, like automotive, finance, healthcare, and media, that don’t sell on Amazon but want access to its industry-leading first-party shopper data. 

Use Amazon DSP if you’re aiming to: 

• Reach net-new audiences using lifestyle, behavioral, and in-market targeting. 

• Retarget site and product viewers with hyperpersonalized messaging. 

• Drive full-funnel performance, from awareness to conversion to brand lift. 

You don’t need to sell on Amazon to win with DSP. Any brand can use Amazon’s audience insights to run programmatic ads across top websites, apps, streaming platforms, and connected TV. 

In an interview with Marketing Brew, Neal Richter, director of advertising science at Amazon DSP, expanded on what even non-endemic brands can gain from using DSP:  “When you’re leveraging Amazon’s DSP, you’re using models that are informed by the kinds of shopping activity of a very broad selection of people — humans — that buy things and get boxes delivered to their doorstep. We believe that our models are very predictive in that sense and uncover a lot of basic purchase intent of consumers.” 

Self-Service vs. Full-Service: Which DSP Model Is Right for You? 

• Self-service DSP: Ideal for brands with in-house media buying expertise and a minimum monthly ad budget of $10,000 or more. You manage your own campaigns directly within Amazon’s DSP platform.
   

• Full-service DSP: Best for brands that want a hands-off approach. Campaigns are managed by Amazon or an authorized agency partner, which gives you access to expert strategy, setup, and optimization without the operational lift. 

Pro tip: Going through a certified Amazon DSP partner can often lower budget thresholds and unlock more flexible access without compromising performance. 

Programmatic advertising is the automated backbone of Amazon DSP. It enables advertisers to buy and serve digital ads at scale in milliseconds across a vast network of inventory. 

Here’s a breakdown of how the process works: 

1. A user visits a website, app, or streaming platform.
2. The publisher’s Supply-Side Platform (SSP) signals that an ad slot is available.
3. Amazon DSP evaluates the opportunity using first-party audience data, behavioral insights, and your campaign criteria.
4. A real-time bidding auction takes place among eligible advertisers.
5. The highest bidder wins, and their ad is served instantly as the content loads. 

This transaction happens in the background in less time than it takes for a page to fully render, which makes it one of the fastest, most efficient forms of media buying that’s available today. 

Amazon’s programmatic ecosystem connects advertisers to premium inventory across: 

• Amazon-owned properties like Amazon.com, IMDb, Fire TV, and Twitch. 

• Thousands of third-party websites and mobile apps via integrated SSPs. 

• Streaming platforms and connected TV for full-funnel video reach. 

Unlike traditional ad buying, programmatic advertising allows for dynamic decision-making based on data in real time so you can make sure your ads reach the right person in the right context with minimal waste. 

Programmatic Advertising vs. Traditional Ad Buying 

Whether you’re focused on awareness, retargeting, or driving conversions, Amazon DSP’s programmatic infrastructure delivers unmatched scale and precision. 

Note: Communities like /r/Programmatic frequently discuss Amazon DSP use cases, including campaign pacing tips, creative hacks, and budget allocation strategies. 

What truly sets Amazon DSP apart is its access to Amazon’s unparalleled first-party data that gives advertisers precision targeting that goes far beyond standard demographics. Whether you’re aiming to convert high-intent shoppers or introduce your brand to new audiences, Amazon DSP lets you build full-funnel campaigns that actually align with how people shop. 

Let’s dive into Amazon DSP’s targeting capabilities that drive performance. 

Retargeting 

Reengage users who browsed your site, viewed your product listings, or added items to their cart but didn’t convert. Use sequential messaging to guide them down the funnel. 

Prospecting 

Expand your reach by targeting shoppers who have never interacted with your brand but show similar browsing or buying behaviors to your existing customers. 

Lookalike and lifestyle segments 

Tap into prebuilt Amazon audience segments based on shared lifestyle traits, content consumption, and purchase behaviors. This is ideal for scaling acquisition without sacrificing relevance. 

In-market audiences 

Reach shoppers who are actively researching and comparing products in your category. This is prime for mid- to lower-funnel engagement. 

Demographic targeting 

Layer in targeting by age, gender, income bracket, education level, and more to sharpen campaign focus and align creative tone. 

ASIN and category targeting 

Deliver ads to users who viewed, searched for, or purchased specific ASINs or entire product categories. This is great for conquesting competitors or cross-selling complementary products. 

Don’t rely on a single targeting signal. Combine multiple data layers, such as in-market behavior + lifestyle + demographics, to create tightly defined audience segments that perform better and waste less ad spend. 

Pro tip: Tools like SmartScout and Jungle Scout can be used in tandem with Amazon DSP to identify high-opportunity categories, competitive ASINs, and gaps in market visibility. 

Amazon DSP doesn’t just offer reach; it delivers creative versatility. Whether you’re trying to captivate shoppers on Amazon.com, streamers on Fire TV, or listeners on Alexa-enabled devices, Amazon DSP gives you access to a full suite of ad formats designed for every stage of the customer journey. 

Amazon DSP Ad Formats 

Display ads 

Serve static or dynamic banners across Amazon.com and premium third-party websites. This is ideal for retargeting, product launches, and brand storytelling in high-traffic environments. 

OTT/CTV 

According to the Amazon Ads blog, consumers are spending an average of 34 more minutes watching online TV and streaming each day than they did a decade ago, and more than four out of five consumers watch streaming services at least once per week. To capitalize on this, deliver full-screen, non-skippable video ads on streaming platforms like Fire TV, Freevee (formerly IMDb TV), and integrated third-party apps. This approach is perfect for upper-funnel brand awareness and mass reach. 

Online video (OLV) 

Run midroll and preroll video ads within video content across Amazon’s publisher network and beyond. This is highly effective for building consideration and product education. 

Audio ads 

Reach users through Amazon Music’s ad-supported tier and Alexa-enabled audio experiences. Great for hands-free, brand-building touchpoints during workouts, commutes, or at-home listening. 

Out-of-home (OOH) 

Launch digital billboard campaigns programmatically in select markets using Amazon DSP’s growing OOH inventory. This is ideal for geotargeted brand exposure and event-based campaigns. 

Pro tip: Brands looking to complement Amazon DSP with influencer-driven top-of-funnel content can integrate partner platforms like Stack Influence to amplify reach and engagement. 

Creative Best Practices for DSP Success 

Amazon DSP gives you granular creative control, and with the right execution, your ads can adapt to every audience and intent signal in real time. 

• Leverage Amazon’s creative automation tools to auto-generate multiple ad variants from your product listings, complete with pricing, imagery, and star ratings.
   

• Pull product images, logos, and brand assets dynamically to ensure consistency across formats and placements.
   

• Align creative with funnel stages. Use bold video for awareness, value-driven banners for consideration, and retargeting ads with urgency-based calls to action (CTAs) for conversion.
   

• Test, iterate, and optimize. Run A/B tests on copy, images, CTAs, and layouts to identify what drives engagement and conversions at each phase.According to SalesDuo: “A/B testing on Amazon Ads helps brands optimize creative, headlines, and bidding strategies for maximum impact. … Amazon’s competitive landscape rewards brands that constantly optimize.” 

Pro tip: Combine Amazon DSP with Sponsored Display to cover the entire customer journey, from off-site awareness to on-Amazon conversions. Sponsored Display reinforces DSP campaigns by capturing high-intent shoppers within the Amazon ecosystem. 

To maximize performance with Amazon DSP, it’s essential to understand the key components that power its programmatic engine. These tools work together behind the scenes to execute campaigns, optimize spend, protect brand integrity, and deliver measurable results at scale. 

Bidder 

This is the real-time bidding brain of Amazon DSP. It evaluates millions of auction opportunities per second and bids dynamically based on your campaign goals, audience criteria, and performance signals, which ensures your ads show up in the right place, at the right time, for the right price. 

Ad Server 

This manages the delivery of your ads and tracks every impression, click, and engagement. It ensures accurate attribution and powers real-time adjustments based on audience behavior and contextual performance. 

Campaign Reporting Dashboard 

This dashboard is your command center for optimization. Get real-time visibility into key metrics like reach, click-through rate, conversion rate, ROAS, viewability, and new-to-brand performance. Drill down by placement, audience, creative, or time period for smarter decisions. 

Budget Manager 

This strategically paces your spend across campaigns to prevent early burnout or underdelivery. It distributes your budget based on predefined goals to maximize efficiency across time zones, devices, and placements. 

SSP Integration 

This integration seamlessly connects to Amazon Publisher Services (APS) and other major supply-side platforms to give you access to premium inventory across thousands of high-quality websites, apps, and CTV platforms. 

Creative Management Tools 

Creative management tools allow you to upload static assets, video files, or dynamically generated creative. Amazon’s tools allow for A/B testing, format-specific optimizations, and personalized messaging across funnel stages with support for both automated and manual workflows. 

Brand Safety and Fraud Protection 

Built-in safeguards scan and block low-quality inventory, fraudulent impressions, and inappropriate placements. Amazon partners with third-party verification tools to maintain ad integrity and protect your brand reputation. 

Third-Party Integrations 

Connect with platforms like Amazon Marketing Cloud (AMC), Google Analytics, Perpetua, Pacvue, and other performance tools for advanced attribution modeling, analytics, and bid automation. 

A successful Amazon DSP campaign doesn’t start with the ad; it starts with strategy. The most effective advertisers treat DSP like a performance engine. Precise goals, clean segmentation, tailored creative, and ongoing iteration fuel results across every stage of the funnel. 

Getting Started: Build for Outcomes, Not Just Impressions 

Before launching a campaign, map your objectives to specific actions and audience signals. Here’s how to lay a strong foundation. 

• Define your primary goal.
  Choose a core objective (awareness, consideration, or conversion) and build your strategy around it. Don’t try to do everything at once. Instead, assign distinct KPIs and creative to each campaign tier.
   

• Select the right service model.

• • Self-service is ideal for brands with internal programmatic expertise and a $10,000+ monthly budget. This do-it-yourself approach gives you full control over bidding, creative, and reporting.

• • Managed service involves Amazon or an authorized DSP partner handling everything from setup to optimization. This is great for faster ramp-up and access to strategic guidance.As Mina Elias, founder and CEO of Trivium Group, said in a recent LinkedIn post:“Smart scaling means:👉 Identify your genius zone: Focus on what you do best. 👉 Outsource everything else: Hire experts for the rest.
    👉 Build systems, not tasks: Create efficient workflows that run on their own.Your time is your most expensive resource.Every hour you spend doing something outside your genius zone is an hour wasted.”If Amazon DSP falls outside of your “genius zone,” it might be worth it to explore authorized DSP partners.
     

• Build high-intent audience segments.Start with audience types that match your funnel stage:

• • Top-funnel: Lifestyle and in-market audiences. 

• • Mid-funnel: Competitor ASIN or category-based targeting. 

• • Bottom-funnel: Remarketing based on past views, cart activity, or purchases.
     

• Match creative messaging to the funnel stage.
  Pair brand-focused video or audio with awareness campaigns while using product-focused display and dynamic creatives for consideration and conversion. 

Refer to the Amazon Ads Support Center or Amazon’s official product documentation for detailed technical guidance on ad specs, budgeting, and targeting options. 

Optimization Tactics: Scale Smarter, Not Just Bigger 

Once your campaigns are live, optimization becomes your growth lever. These proven tactics keep spend efficient and performance sharp: 

• Set frequency caps.
  Avoid ad fatigue and oversaturation by limiting how many times each user sees your ad per day, week, or campaign cycle. Monitor the frequency-to-conversion ratio to find your sweet spot.
   

• Rotate and refresh creative based on performance.
  Creative fatigue is real. Regularly test new headlines, images, and formats. For video, experiment with different hooks, CTAs, and runtimes.
   

• A/B-test targeting combinations.
  Don’t just test creative; test your audience logic. For example, you could test: 

• • In-market + demographic vs. lifestyle + behavioral. 

• • Lookalike audiences built from recent converters vs. past purchasers.
     

• Use Amazon Marketing Cloud (AMC) and Marketing Stream. 

• • AMC gives you deep, sales qualified lead-based insights into path-to-purchase, frequency effects, and audience overlap across campaigns. 

• • Marketing Stream delivers near-real-time performance data that allows you to adjust pacing, creative rotation, or bid strategy throughout the day. 

Pro tip: Use AMC to identify which combinations of ad formats and audiences lead to conversions; then, reinvest your budget toward those proven funnels. 

The key to getting ROI from Amazon DSP isn’t just launching campaigns; it’s knowing how to track, interpret, and act on the data. With multiple tools at your disposal, the smartest advertisers go beyond vanity metrics and tie performance directly to funnel impact and business outcomes. 

Your Amazon DSP Measurement Stack: What to Use and Why 

Amazon DSP Reporting Console 

Start with the basics. Track real-time performance across standard metrics like impressions, CTR, video completion rate (VCR), and conversion rate. Use filters to segment data by audience, creative, and placement. 

Amazon Marketing Cloud (AMC) 

Unlock advanced, SQL-based insights to understand multitouch attribution, shopper paths to purchase, and incremental lift. AMC reveals what DSP can’t, like how many exposures it takes to convert or how upper-funnel tactics impact lower-funnel performance. 

Brand Lift Studies 

Quantify awareness and perception changes driven by your campaigns. This is ideal for OTT, CTV, and upper-funnel video strategies, especially when paired with pre- and post-campaign surveys or controlled test groups. 

Attribution Modeling 

Move beyond last click. Use time decay, linear, or custom attribution models to understand how each touchpoint (DSP impressions, video views, or clicks) contributes to conversion and customer value. 

Amazon DSP KPIs to Track at Each Stage of the Funnel 

Here’s what’s to monitor based on funnel stage: 

Key Amazon DSP Metrics 

Tracking the right performance metrics is essential for optimizing Amazon DSP campaigns and proving ROI across the funnel. Below is a breakdown of the most critical metrics — what they mean, why they matter, and how to use them effectively. 

Impressions 

The total number of times your ad was served. This is a foundational awareness metric that helps measure reach and scale. 

Reach 

The number of unique users who saw your ad. This metric is useful for evaluating audience saturation and planning frequency caps. 

Video Completion Rate (VCR) 

The percentage of users who watched your video ad to the end. This metric is a strong signal of creative engagement and message resonance, especially for OTT/CTV formats. 

Brand Lift 

Measures changes in awareness, recall, or perception before and after a campaign. This is typically captured through controlled studies and critical for evaluating top-of-funnel campaigns. 

Click-Through Rate (CTR) 

The percentage of impressions that resulted in a click. This helps assess how compelling your creative and CTA are, and it’s often used to benchmark engagement. 

Conversion Rate 

The percentage of users who took a desired action (purchase, signup, etc.) after clicking on or viewing your ad. Conversion rate is a key performance metric for mid- to lower-funnel campaigns. 

Return on Ad Spend (ROAS) 

Total revenue generated divided by total ad spend. Use ROAS to evaluate financial efficiency and determine where to reinvest budget. 

Frequency Impact 

The average number of times a user sees your ad before converting. This is an important lever for optimization. Too low may mean missed exposure; too high may lead to ad fatigue. 

Detail Page View Rate (DPVR) 

The percentage of ad viewers who visited your product detail page. This is a solid mid-funnel metric that indicates product interest. 

Add-to-List (ATL) 

The percentage of users who added your product to a shopping list or cart. ATL is a strong leading indicator of purchase intent. 

New-to-Brand Conversions 

The percentage of orders placed by customers who haven’t purchased from your brand in the past 12 months. This helps measure acquisition effectiveness and campaign reach to new audiences. 

Offline Sales Lift 

Captures the increase in brick-and-mortar purchases driven by your online DSP ads. This is especially valuable for consumer packaged goods (CPG), grocery, and multichannel brands. 

Pro tip: Segment these KPIs by campaign goal (awareness, consideration, conversion) and platform (display, video, OTT) to uncover what’s really driving performance and where to scale. 

Amazon DSP isn’t just a standalone platform; it’s part of a powerful, integrated ad tech ecosystem. When fully activated, these tools offer advertisers deep analytics, real-time optimization, automated execution, and direct access to high-value inventory, all connected by Amazon’s unmatched first-party data (read more on first-party data from AdExchanger). 

Key Components of the Amazon DSP Ecosystem 

Amazon Marketing Cloud (AMC) 

AMC is Amazon’s clean-room analytics solution that lets you dive deeper than standard DSP reports. Built for SQL-based analysis, AMC allows you to understand multitouch attribution, frequency effects, audience overlap, time to convert, and more, all while preserving customer privacy. If you want to know which creative combinations drive the highest ROAS, or how DSP works in tandem with Sponsored Products, this is where you get those answers. 

Amazon Marketing Stream 

Amazon Marketing Stream provides near-real-time performance data via push-based APIs. This means you’re no longer limited to daily summary reports; you can adjust pacing, shift bids, or refresh creative within hours, not days. This is ideal for agile advertisers running flash sales, seasonal pushes, or high-frequency testing cycles. 

Amazon Attribution and Amazon Ads API 

Amazon Attribution helps you measure how non-Amazon marketing channels (search, social, email, etc.) drive conversions on Amazon. Combine this with the Amazon Ads API to automate campaign actions, integrate data with your internal dashboards, and streamline multichannel campaign management. 

Amazon Publisher Services (APS) 

APS gives you direct access to high-quality, brand-safe publisher inventory, including Amazon-owned properties and third-party media partners. Through APS, Amazon’s DSP bypasses intermediaries and offers lower latency, higher transparency, and stronger performance in private marketplaces (PMPs). 

Amazon Retail Ad Service (ARAS) 

ARAS delivers granular retail insights that tie your ad campaigns directly to downstream retail performance, including shelf visibility, stock status, and Buy Box ownership. This is a must-have layer for brands that sell on Amazon and want to connect media strategy with real-world sales impact. 

Note: For enterprise brands using an agency trading desk, Amazon DSP integrates seamlessly via private marketplaces (PMPs) and third-party APIs for centralized control and cross-platform visibility. 

DSP Partner Platforms 

For brands using self-service or seeking additional automation and optimization layers, these Amazon DSP-certified tools offer powerful integrations: 

Perpetua 

Perpetua automates bidding, budgeting, and creative strategy across Amazon ad types. It’s known for strong visual dashboards and ROAS-optimized algorithms. 

Pacvue 

Pacvue provides enterprise-grade DSP management with custom rule engines, cross-channel visibility, and deep integration with AMC. It’s popular among large CPG and retail advertisers. 

Adbrew 

Adbrew focuses on DSP efficiency and retail readiness. It’s great for midsize brands looking for full-funnel performance and easy onboarding. 

Intentwise 

Intentwise offers advanced targeting, performance modeling, and AMC insights. It’s highly regarded for its customer service and strategic support. 

StackAdapt 

While Amazon DSP is built for closed-loop advertising, external DSPs like StackAdapt often inform broader programmatic strategy, particularly for brands exploring multiplatform reach. 

Optimization tip: Choose a DSP partner based on your brand’s maturity, in-house expertise, and integration needs. Agencies and tool partners can often help reduce budget thresholds for DSP access and provide faster time to value. 

Amazon DSP Decision Guide: Self-Service vs. Tech Partner vs. Full-Service 

Choosing the right Amazon DSP execution model depends on your goals, budget, team capacity, and appetite for control. Use the guide below to evaluate which path — self-service, tech-assisted, or fully managed — best aligns with your business needs and campaign maturity. 

Key Takeaways 

• Choose self-service if you have an internal team that’s experienced with programmatic and you want full control over execution and pacing. 

• Choose a DSP technology partner if you want to maintain strategic ownership but need automation, insight layers, and lower lift. 

• Choose full-service if you’re scaling fast, need cross-channel strategy, or lack the internal bandwidth to manage DSP operations directly. 

Whether you’re a Seller Central brand or operating through Vendor Central, Amazon DSP is available to you, but how you access it and manage it can vary. Understanding these paths is important so you can unlock programmatic scale and leverage Amazon’s data-rich ad environment. 

Amazon DSP Access for Seller Central Brands 

If you’re selling via Seller Central (typically third-party sellers or private-label brands), you can access Amazon DSP in two primary ways: 

• Via Amazon’s Managed Services: This avenue requires a higher budget threshold (often $35,000+ per campaign, though this can vary by region or category).
   

• Through authorized DSP agencies or tech partners: Authorized Amazon DSP agencies and tech partners offer more flexible budget minimums (as low as $5,000-$10,000), which makes DSP accessible to midmarket sellers or those testing programmatic for the first time. As highlighted in the SellerApp blog, using a DSP agency partner can help reduce spend thresholds for Seller Central brands while unlocking advanced campaign support. 

Amazon DSP Access for Vendor Central Brands 

Vendor Central brands are typically 1P wholesale suppliers that sell directly to Amazon. They often have access to DSP through Amazon’s internal media teams or managed service packages. 

• Amazon Managed Services are more common for vendors, especially larger or enterprise brands with complex product portfolios.
   

• Vendors can also partner with certified DSP platforms or agencies if they prefer more control, agility, or broader cross-channel integration. 

Leverage the Same DSP Power, Regardless of Access Point 

No matter how you access Amazon DSP, the capabilities remain the same: 

• Full-funnel targeting (awareness, consideration, conversion). 

• Deep audience segmentation using Amazon’s first-party data. 

• Omni-channel reach across display, video, audio, and streaming formats. 

• Retargeting, conquesting, and new-to-brand acquisition strategies. 

• Integration with AMC, Marketing Stream, and advanced attribution tools. 

What differs is how you execute and how much control you retain. Sellers tend to favor more agile, partner-supported DSP setups, while vendors may lean into managed services for scale and enterprise support. 

Bottom line: Your Amazon DSP success isn’t determined by how you sell on Amazon; it’s determined by how you strategically activate the platform’s full capabilities. 

Even the most data-rich programmatic platform can underperform if misused, and Amazon DSP is no exception. With powerful tools comes the responsibility to use them strategically. Below are some of the most common pitfalls advertisers fall into when managing Amazon DSP campaigns (and how to avoid them). 

1. Over-Targeting or Over-Segmenting Your Audience 

It’s tempting to create highly specific audience segments in the name of precision, but going too narrow can severely limit reach, throttle your campaign’s scalability, and inflate your cost per impression. 

• What happens: Your ads are served to a tiny audience, performance data becomes statistically unreliable, and pacing suffers. 

• What to do instead: Start with broader in-market or lifestyle segments and narrow based on performance. Layer targeting types (e.g., demographic + behavioral) rather than isolating. 

2. Oversaturation from High Frequency 

Ad fatigue is real, especially when users see the same creative five times a day for two weeks. 

• What happens: Engagement drops, brand perception suffers, and your conversion rate plummets. 

• What to do instead: Set frequency caps at the campaign level. Monitor frequency vs. conversion rate in Amazon Marketing Cloud to find your optimal exposure window (often 2-4 times per week per user). 

3. Misaligned Creative Across Funnel Stages 

Running a product-heavy display ad in a brand awareness campaign is like proposing marriage on the first date. It’s too much too soon. 

• What happens: Poor engagement, confusing messaging, wasted impressions. 

• What to do instead: Match your creative to intent. Use video or audio for awareness, educational or lifestyle messaging for consideration, and retargeting banners with urgency for conversions. 

4. Neglecting Upper-Funnel Awareness Campaigns 

Too many brands jump straight to bottom-of-funnel retargeting without investing in top-of-funnel visibility, which limits scale and long-term growth. 

• What happens: Diminishing returns over time as your audience pool dries up. 

• What to do instead: Build a steady pipeline by investing in OTT/CTV, lifestyle targeting, and prospecting campaigns. Use brand lift studies to measure impact. 

5. Optimizing Solely for Immediate ROAS 

While ROAS is a vital metric, it shouldn’t be the only one, especially in early-stage or awareness campaigns. 

• What happens: Short-term wins are prioritized over long-term brand growth, and valuable touchpoints get undervalued. 

• What to do instead: Group KPIs by funnel stage. For upper-funnel campaigns, optimize for reach, VCR, and brand lift. Use multitouch attribution models to connect top-funnel exposures to eventual conversions. 

Pro Insight: Balance Reach With Relevance 

Amazon DSP works best when campaigns are structured holistically — not just to close sales, but to build brand equity, attract new audiences, and support long-term performance. Not every campaign needs to drive immediate conversions. Focus instead on sequencing, data-driven optimization, and full-funnel alignment. 

Pro tip: Use AMC to understand where your drop-offs occur. If top-funnel video leads to high DPVR but no conversions, the issue might be midfunnel, not the creative or audience. 

Is Amazon DSP only for large brands? 

No, but it’s better suited for brands that are ready to invest in scalable, data-driven advertising. While DSP does require a higher budget than Sponsored Products or Sponsored Display (typically $5,000-$10,000/month minimum through agency partners), it’s accessible to midsize and growth-stage brands looking to expand their reach, retarget site visitors, and acquire new customers across the open web. You don’t have to be a Fortune 500 company; you just need a strategic budget and a clear goal. 

Do I need to sell on Amazon to use Amazon DSP? 

Nope! Even if you don’t sell products on Amazon, you can still run campaigns leveraging Amazon’s first-party shopper data to reach high-intent audiences across third-party sites, mobile apps, and streaming platforms. 

Think automotive, fintech, media, healthcare, travel, and B2B. All of these verticals can use Amazon DSP to reach relevant audiences based on browsing, purchase intent, and content consumption. 

Can I run video ads through Amazon DSP? 

Yes, and it’s one of Amazon DSP’s biggest advantages. You can run video ads in multiple formats, including the following: 

• OTT (over-the-top): Full-screen ads on streaming services like Fire TV and Freevee (formerly IMDb TV). 

• CTV (connected TV): Ads on smart TVs and connected devices across third-party apps. 

• OLV (online video): Mid-roll and pre-roll video ads across the web and Amazon’s publisher network. 

Video campaigns are perfect for upper-funnel awareness, brand storytelling, and launching new products with visual impact, especially when paired with brand lift studies to measure awareness impact. 

What’s a good ROAS for Amazon DSP? 

It depends on your industry, funnel stage, and campaign goals, but a 2-4 times ROAS is considered a healthy benchmark for midfunnel prospecting or retargeting campaigns. 

For top-of-funnel initiatives (like OTT or lifestyle targeting), don’t expect immediate ROAS. Success is better measured via impressions, VCR, and new-to-brand conversions. 

For bottom-of-funnel campaigns, many brands see ROAS as high as 5-8 times, especially when combining DSP with Sponsored Products for dual-channel reinforcement. 

How do I measure success in Amazon DSP? 

Success in DSP isn’t one-size-fits-all; it hinges on campaign intent. Use this goal-based framework to track what matters: 

• Awareness: Impressions, reach, video completion rate, brand lift 

• Consideration: Click-through rate, detail page view rate, add-to-list 

• Conversion: Conversion rate, return on ad spend, new-to-brand conversions 

• Offline impact: Offline sales lift (ideal for CPG or in-store products) 

For advanced analysis, tap into Amazon Marketing Cloud (AMC) to explore path-to-conversion data, frequency thresholds, and multitouch attribution across campaigns. 

Amazon DSP is no longer just a nice-to-have; it’s a must-have channel for any brand that’s serious about omni-channel growth, audience precision, and full-funnel performance. 

Kelly MacLean, VP of Amazon Ads, recently emphasized how first-party audience data will define the next generation of programmatic advertising, and Amazon DSP is positioned at the forefront. 

With access to Amazon’s industry-leading first-party data; expansive inventory across premium and third-party placements; and the ability to run display, video, audio, and streaming campaigns at scale, Amazon DSP enables you to build a marketing strategy that’s not only data-driven, but also customer-led. 

From top-funnel awareness to bottom-funnel conversions, Amazon DSP equips you with the tools to do more than just chase clicks. It empowers you to: 

• Reach new audiences with surgical precision. 

• Reengage high-intent shoppers across devices and platforms. 

• Build brand equity while driving measurable ROI. 

• Seamlessly integrate with tools like AMC, Stream, and Sponsored Ads. 

But the real differentiator? Amazon DSP lets you move beyond fragmented media buying to build a cohesive, insight-driven, performance marketing machine.