What is Amazon DSP

Learn what Amazon DSP is, how it works, how it is different from Sponsored Ads, and when you should start using DSP.

What Is Amazon DSP?

Amazon DSP, or Demand-Side Platform, is an advertising solution offered by Amazon that enables advertisers to programmatically purchase display and video ad placements across the Amazon ecosystem and beyond. Unlike traditional sponsored ads, which are limited to appearing within Amazon's marketplace, DSP ads can be displayed on a wide network of websites, apps, and even off-Amazon platforms. 

How Amazon DSP Works

Amazon DSP works by leveraging a vast amount of data to help advertisers target their desired audience more effectively. Here's a brief overview of how it operates:

  1. Audience Targeting: Amazon DSP allows advertisers to select from various targeting options, such as demographic data, purchase behavior, and interests. Advertisers can even create custom audience segments based on specific criteria.

  2. Ad Formats: Advertisers can choose from a variety of ad formats, including display and video ads. These ads can be highly engaging and creative to capture the attention of potential customers.

  3. Bidding and Budgeting: Advertisers set their budgets and bidding strategies. Amazon DSP employs real-time bidding to ensure that your ad reaches the right audience at the right time.

  4. Ad Placements: Amazon DSP enables ads to be placed on Amazon-owned and operated sites, as well as third-party sites, apps, and devices, both on and off the Amazon network. This extensive reach provides advertisers with more exposure.

DSP vs. Sponsored Ads

The key distinction between Amazon DSP and traditional sponsored ads lies in their visibility:

  • DSP Ads: Amazon DSP ads can appear not only within the Amazon ecosystem but also on a vast network of external websites, apps, and devices. This extended reach allows advertisers to engage potential customers wherever they spend their time online.

  • Sponsored Ads: Traditional sponsored ads are limited to the Amazon marketplace, including search results, product pages, and other Amazon-owned placements. They are primarily geared towards promoting products and increasing visibility within the platform.

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