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Amazon’s Demand-Side Platform (DSP) gives brands access to a powerful programmatic advertising network using Amazon’s first-party consumer data. Uniquely, Amazon DSP allows advertisers to reach shoppers across the web and on Amazon-owned properties – not just on Amazon’s marketplace. This opens opportunities to advertise off Amazon (for example, displaying ads on third-party websites, mobile apps, streaming TV, etc.), all while leveraging Amazon’s deep shopper insights. For brand managers and enterprise advertisers, the prospect of using Amazon DSP to drive traffic to your own direct-to-consumer (D2C) site or to broaden brand awareness beyond Amazon can be enticing. But like any tool, Amazon DSP works best under the right conditions – and can disappoint if misused or misaligned with your goals. Below, we break down what Amazon DSP is, and when off-Amazon DSP advertising pays off versus when it might not.
Amazon DSP is Amazon’s demand-side platform for programmatic ads. In contrast to Sponsored Products or Sponsored Brands (which appear on Amazon’s site and app), DSP campaigns can reach audiences both on and off Amazon’s platforms. This means your ads can show on Amazon-owned outlets like IMDb, Twitch, and Fire TV, as well as across a network of third-party websites and apps, all targeted by Amazon’s unrivaled shopper data.
Notably, Amazon DSP isn’t limited to brands that sell on Amazon. Even non-Amazon advertisers – say, a travel service or an automotive brand – can use DSP to reach consumers based on Amazon shopping signals. DSP is one of the few Amazon ad formats that allows linking to external websites, not just Amazon product pages. In other words, you can run an Amazon DSP ad that, when clicked, leads shoppers to your own e-commerce site or a landing page off Amazon. As the marketing platform Skai emphasizes, “Amazon DSP is an incredible way to drive shoppers to [brands’] sites, especially for direct-to-consumer (D2C) brands.”
However, Amazon DSP is a premium advertising tool with certain requirements. There’s typically a minimum spend commitment (around $35,000 for a self-service DSP seat), or you can work with Amazon’s managed-service or a DSP partner agency. Managing DSP also requires expertise in programmatic advertising – from defining audience segments to setting bids and frequency caps – so it’s often the realm of larger brands or agencies. Before diving in, it’s crucial to know when DSP is likely to deliver strong results and when it might fall short.
Amazon DSP can be highly effective under the right conditions. Here are scenarios where off-Amazon DSP advertising shines, backed by real-world data and examples:
Amazon DSP leverages rich first-party data on shopper behavior, which means you can target extremely specific audiences across the internet. For example, you can zero in on users who viewed your product or similar products on Amazon but didn’t purchase, then serve them ads on other sites to re-engage them. You can even target people who viewed competitor products, allowing you to “swoop in at the end of the purchase path.” This kind of intent-based targeting is a major advantage of Amazon DSP.
Amazon DSP isn’t just a branding tool; it can drive mid- and bottom-funnel results. Amazon has found that combining DSP with Sponsored Ads yields much better outcomes – audiences exposed to both were 25× more likely to purchase than those who saw only a Sponsored Product ad. Brands also saw 21% more new-to-brand sales when adding DSP to their ad mix.
In short, DSP can amplify your overall advertising performance by re-engaging shoppers at different touchpoints. It’s especially useful for launches or campaigns where you want to blanket the customer journey from awareness to conversion.
One of DSP’s clearest wins is retargeting people who already showed interest in your product. These might be users who viewed your listing or brand store, or added an item to cart but didn’t check out.
By serving them a reminder ad off Amazon, you can recapture lost sales. Advertisers often find that retargeting via DSP yields quick, tangible results. For example, Skale Strategy used DSP to retarget shoppers for a footwear brand, driving them to the D2C site and achieving nearly a 96% increase in sales.
Amazon DSP is one of the only ways to use Amazon’s data to drive sales off Amazon. It works particularly well for brands with strong D2C operations or higher-margin products on their own site. You can funnel Amazon’s audience to your site for bundles, subscriptions, or special deals, owning the customer relationship while leveraging Amazon’s reach.
As Skai recommends, “use Amazon DSP to drive traffic to your owned sites where you can transact with consumers outside of Amazon.” The strategy works when you have a strong site experience and compelling offer.
Amazon DSP works well when you need to cast a wide but precise net – like launching a new brand or entering a market. You can access Amazon’s ad inventory (from banners to streaming video) to quickly build awareness among your target demographic.
Many advertisers use Amazon Marketing Cloud with DSP to understand how DSP ads influence later actions like searches or purchases. When executed well, DSP can drive major sales lifts – in one case, increasing sales by 99% through stronger brand searches and conversions.
Despite its strengths, DSP isn’t a fit for every brand. Here are situations where off-Amazon DSP may underdeliver:
Amazon DSP requires significant budget and scale to be effective. Smaller brands may find the minimum investment (often tens of thousands of dollars) prohibitive. Without enough data and traffic volume, results are limited. If you’re not ready to invest at scale, DSP might not work simply because it can’t reach critical mass.
It’s often better to master Sponsored Ads first and build a strong base before layering DSP.
Brands expecting DSP to deliver instant results often end up disappointed. DSP campaigns take time to optimize and work best as long-term investments in awareness and engagement.
As one agency notes, DSP “requires significant time, investment, and data to optimize effectively.” Retargeting may perform faster, but prospecting new audiences demands patience.
Tracking off-Amazon conversions is harder than on-Amazon sales. Amazon offers modeled attribution for off-Amazon activity, but it’s still an estimate.
Advertisers should use Amazon pixels or Attribution tagging to connect DSP performance with real outcomes, but must accept that not all conversions will be traceable. Many brands rely on total D2C sales lift or aggregate trends to evaluate success.
DSP’s sophistication can backfire if poorly executed. Weak audience segmentation, repetitive targeting, or uninspired creatives can waste spend.
DSP offers many formats (static, dynamic, video, audio), and each requires tailored creative and strategy. Without dedicated management, A/B testing, and frequency controls, campaigns can stagnate. Partnering with experienced agencies often helps avoid this pitfall.
If the landing experience or offer doesn’t match shopper expectations, DSP traffic won’t convert. For instance, sending “running shoe” audiences to a generic homepage can tank ROI.
Ensure your D2C site is optimized with a clear offer, smooth checkout, and fast load time. Otherwise, even perfectly targeted DSP traffic will bounce, leading to poor performance.
Amazon DSP for off-Amazon advertising can be a powerful part of your marketing mix – but only under the right conditions. It works best for brands with the budget and patience for data-driven campaigns, leveraging Amazon’s unmatched data to reach the ideal audience. When those conditions are met, DSP has driven impressive results, from stronger customer acquisition to near-doubling of sales in some cases.
However, DSP isn’t one-size-fits-all. If you’re constrained on budget, need short-term ROI, or lack resources for tracking and optimization, it may frustrate more than it helps. Keep realistic expectations: DSP is about long-term engagement and brand lift, not just quick wins.
Use it strategically for goals like scaling brand awareness, retargeting high-intent shoppers, or driving targeted traffic to your own site. Avoid using it as a short-term sales lever without a clear strategy. When managed well, Amazon DSP can be a game-changer for off-Amazon advertising. When misused, it can drain budgets.
In summary: Amazon DSP works when you align its strengths with your strategy – and doesn’t when you don’t. Bring the right audience, message, and offer, and DSP will reward you with results.
