Amazon DSP for New Product Launches & Brand Building

Amazon’s Demand-Side Platform (Amazon DSP) is a programmatic advertising system that allows brands to buy display, video, and audio ads both on Amazon-owned properties and across the broader internet. Unlike Amazon’s pay-per-click Sponsored Ads (which only appear on Amazon’s website/app), DSP ads can reach shoppers on third-party websites, mobile apps, streaming TV channels (Fire TV, Twitch, etc.), all while using Amazon’s rich shopper data for targeting. In practice, this means an Amazon seller can show ads for their product far beyond the Amazon marketplace – for example, a banner ad for your new product might appear on a popular news site or a lifestyle blog, specifically shown to users whose Amazon browsing behavior suggests they’d be interested.

How Does Amazon DSP Work? At a high level, Amazon DSP lets you define an audience and automatically bids to show your ads to users who fit that profile, wherever they are online. You can target extremely specific criteria thanks to Amazon’s first-party data (e.g. “women, age 25-34, who have recently searched for running shoes”). When an opportunity arises to serve an ad to someone meeting your criteria, Amazon’s system buys that ad slot in real time and displays your creative. Because DSP uses a cost-per-mille (CPM) model (pay per 1,000 impressions) and offers advanced controls, it typically requires a larger budget and more expertise than basic Sponsored Ads. Many smaller brands access Amazon DSP through agencies or Amazon’s managed service. Working with a certified partner like Skale Strategy can help new advertisers navigate DSP – agencies can lower the minimum spend threshold and apply proven optimizations from the start.

To understand where DSP fits in your toolkit, it’s helpful to compare it to Amazon’s standard Sponsored Ads:

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Table: Key differences between Amazon DSP and Sponsored Ads. Both have a role in a balanced Amazon advertising strategy. DSP casts a wider net to introduce and nurture audiences, while Sponsored Ads capture shoppers with immediate intent. Used together, they create a powerful synergy (for example, a DSP ad can drive a shopper to your page, where a Sponsored Product ad and optimized listing can then close the sale).

How Amazon DSP Supports New Product Launches

Launching a new product on Amazon is an exciting but challenging endeavor – especially for private-label and emerging brands with no prior sales history or reviews. In the critical first weeks of a product launch, visibility is everything. This is where Amazon DSP can complement your launch strategy in ways that ordinary Sponsored Ads cannot. By reaching shoppers before they ever search on Amazon and after they leave your page, DSP helps ensure your new product doesn’t get lost in the noise.

Boosting Early Awareness: The biggest hurdle for a new product is low awareness. Amazon’s own data shows that brands who use upper-funnel ads (like display or video) within the first month of a launch saw 36% higher conversion rates on average than those who waited to advertise. In practice, this means running DSP display ads or video ads as soon as your product is live (or even in a pre-launch phase) to educate consumers about your product’s value proposition. With DSP, you can target relevant audiences even outside of Amazon – for example, showing an ad for your new kitchen gadget on a popular cooking website or mobile app that your target demographic visits. The goal is to quickly drive product discovery among people likely to be interested, so that when they do come to Amazon, they already recognize your brand or product.

Precision Targeting of Prospective Buyers: Amazon DSP lets you zero in on shoppers who are most likely to buy your new item – even if they haven’t found it via search. You can leverage in-market audiences (people actively browsing in your category) or interest/lifestyle segments (people whose behavior suggests specific hobbies or needs) to find high-potential customers. Uniquely, DSP also enables competitor conquesting: for instance, you can target users who have recently viewed or purchased products similar to yours (including competitors’ products). This allows a new brand to effectively intercept shoppers who are considering rival products, by introducing them to your alternative. By strategically placing your new product in front of these high-intent shoppers, you can capture market share from established competitors.

Remarketing to Recover Lost Sales: Not everyone will buy your new product on their first visit. Many shoppers will check out your Amazon listing and leave without purchasing – especially when the product is new and lacks reviews. Amazon DSP excels at retargeting these warm prospects and nudging them to come back. Through DSP remarketing campaigns, you can serve ads specifically to people who viewed your product page or added the item to cart but didn’t check out. Those ads will follow them off Amazon – perhaps as a reminder banner on a news site or a social media app – keeping your product top-of-mind. This strategy is proven to boost conversions: advertisers often find that retargeting via DSP yields quick, tangible results. For example, one brand used DSP to re-engage shoppers who abandoned a footwear product in their cart and saw a 96% increase in sales after driving those shoppers back to Amazon to purchasesmartscout.com. Especially during a launch, such retargeting can significantly improve your sales velocity and help your product climb in Amazon’s rankings. DSP essentially gives your new product multiple chances to win the sale.

Accelerating Full-Funnel Impact: Amazon DSP isn’t meant to replace your Sponsored Product campaigns – it’s meant to amplify them. In fact, some of the best results occur when you run DSP in tandem with Amazon’s PPC ads. Amazon has found that combining DSP with Sponsored Ads leads to much stronger outcomes than using Sponsored Ads alone. In one analysis, shoppers who were exposed to both a DSP ad and a Sponsored Product ad were 25× more likely to purchase, and brands saw 21% more new-to-brand sales when adding DSP to their mix. The takeaway: a full-funnel launch strategy (using DSP for broad awareness and retargeting, alongside Sponsored Ads for in-search visibility) will blanket your target audience. Wherever the shopper goes, they encounter your new product – building familiarity and interest at every touchpoint. By the time they see it on Amazon, they’re already primed to buy. In short, DSP can dramatically boost your launch trajectory by feeding more potential customers into your funnel and ensuring fewer of them slip away.

How Amazon DSP Supports Brand Building

Building a strong brand presence is crucial for long-term success, and Amazon DSP is a powerful tool for brand building on and off Amazon. It allows you to reach new audiences, shape their perceptions of your brand, and stay engaged with them beyond the point of purchase. Here are some key benefits of using DSP for brand-oriented campaigns:

• Expanded Reach Beyond Amazon: DSP enables your brand to appear not only on Amazon’s site but across the wider web. Your ads can show on Amazon-owned platforms (IMDb, Twitch, Fire TV, etc.) and on thousands of partner websites and mobile apps. This broad presence keeps your brand visible to potential customers wherever they browse. Crucially, Amazon’s network is brand-safe, so your ads won’t run on undesirable contentadbrew.io. The result is massive yet controlled exposure – a foundation for growing brand awareness.
• Precise Audience Targeting: With DSP you can laser-target the exact audiences you want to build your brand with, thanks to Amazon’s trove of first-party shopper data. You can reach people by demographics, interests, lifestyle segments, shopping behavior, and more. For example, a baby products brand could target “new parents” or people who recently browsed nursery items. This precision ensures your brand ads resonate with relevant consumers, making your marketing more effective and efficient.
• Engaging Ad Formats for Storytelling: Amazon DSP supports rich media formats like video and audio ads that allow you to tell your brand story in depth. You can run short video commercials highlighting your brand’s mission or demonstrating products in use – fostering an emotional connection with viewers. Amazon’s own studies show that Streaming TV ads (available via DSP) tend to attract a higher proportion of new-to-brand shoppers than standard static adssmartscout.com. In short, DSP lets you use high-impact creatives to make your brand memorable.
• Measurable Brand Impact: Unlike traditional broad-reach advertising, Amazon DSP provides concrete metrics to gauge brand-building success. You can track new-to-brand orders (how many first-time customers your ads generated), detail page views from your ads, and even conduct Brand Lift studies via Amazon to measure increases in brand awareness or purchase intent. Additionally, integrating DSP with Amazon Marketing Cloud allows deep analysis of how your ads influence shopping behavior across channels. These insights help you refine campaigns and prove ROI on your brand marketing efforts.

Best Practices for Succeeding with Amazon DSP

1. Set Clear Campaign Goals: Start by defining what success looks like for your DSP campaign. Is your primary goal to build brand awareness (drive impressions and reach), to increase consideration (get more product detail page views and engagement), or to boost conversions and sales? Having a clear objective will influence your targeting, creatives, and budgeting. Also decide on key metrics for that goal – for example, if awareness is the aim, you might track impressions or reach; if sales are the aim, watch new-to-brand order count, ROAS, or conversion rate. By knowing your destination, you can steer your DSP strategy in the right direction from the outset.
2. Invest in Compelling Creatives: In the world of DSP, the ad creatives (images, videos, audio) are your brand’s first impression. Allocate time and resources to create high-quality, engaging ads. Use lifestyle imagery or video to tell a story that resonates with your target audience – something that communicates your brand’s personality and the value of your products. Make sure your logo and brand name are prominent to build recognition. Keep any ad copy clear and impactful, since viewers may only glance briefly. A catchy, visually appealing ad is far more likely to grab attention and drive a click (or leave a lasting impression).
3. Use Smart Audience Targeting: One size does not fit all in advertising. Split your DSP efforts into logical audience segments and tailor your approach to each. For instance, set up a prospecting campaign targeting in-market shoppers or interest groups who haven’t bought from you yet, and a separate retargeting campaign for people who viewed your product or similar items. You can even target past customers in another segment to promote new product lines. By segmenting audiences, you can customize the ad creatives and messaging to each group and optimize bids based on their response. Continuously analyze performance by segment – if certain audiences are not engaging (e.g. very low click-through or no conversions), refine your targeting or shift budget to better-performing segments. DSP’s strength is in precise targeting, so use it thoughtfully rather than blasting a broad, unfocused audience.
4. Monitor and Optimize Continuously: Once campaigns are live, watch your metrics closely and be ready to make adjustments. Amazon DSP provides a wealth of data – use it to your advantage. If the click-through rate is low, test new creatives or more relevant audience segments. If conversions are below expectations, consider adjusting your bids or increasing frequency caps (especially for retargeting ads) to ensure interested shoppers see your message enough times. It’s wise to run experiments (A/B tests) by trying different creatives or targeting approaches to see what moves the needle. Be patient as you optimize – programmatic campaigns often improve over a few weeks as the algorithm learns and as you fine-tune settings. Don’t be discouraged by a slow start; focus on improving week by week. Regular tweaks and data-driven optimizations will yield significantly better performance over time.
5. Leverage Expert Help if Needed: Amazon DSP has a learning curve, and successful execution can require programmatic advertising experience. If you’re not comfortable managing it in-house, consider partnering with a specialist – either Amazon’s managed-service team or a dedicated agency. Working with an agency like Skale Strategy, which has deep Amazon DSP expertise, can fast-track your success. Agencies handle everything from campaign setup to daily optimization, and they often have their own DSP platform access (which can lower the minimum spend required). A good partner will help avoid common pitfalls, implement best practices from day one, and continually refine your campaigns for maximum impact. In short, tapping into expert knowledge can save you time and ad spend while improving your results.

Conclusion

Amazon DSP opens a new frontier for Amazon sellers by enabling full-funnel marketing – you’re not just capturing existing demand on Amazon, but actively creating demand and guiding it to your brand. When used wisely, DSP can turbocharge a new product launch through widespread awareness and multi-touch retargeting, and it can steadily strengthen your brand’s presence and customer loyalty over the long term.

However, success with DSP isn’t automatic. It requires strategic planning, creative execution, sufficient budget, and continuous optimization. It’s not a quick fix or a substitute for solid products and well-optimized listings – rather, it’s a powerful amplifier when these fundamentals are in place. Brands that align DSP with clear goals and integrate it with their overall Amazon strategy often reap significant rewards in growth.

As you consider leveraging Amazon DSP, make use of data-driven insights to inform your approach. For example, SmartScout’s tools and reports can help identify high-opportunity audiences and competitive gaps, ensuring your DSP campaigns are grounded in market intelligence. In the end, Amazon DSP can be a game-changer for scaling your Amazon business and building a memorable brand – provided you embrace its full-funnel capabilities and execute with focus and expertise.

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