Programmatic advertising hinges on demand-side platforms (DSPs) that automate media buying. Two leaders are Amazon DSP and The Trade Desk. Amazon launched its DSP in 2012 (self-serve in 2014) to monetize its vast shopping ecosystem. In contrast, The Trade Desk debuted in 2009 with a mission to make ad buying more open and transparent. Over the past decade each has grown explosively: The Trade Desk reported $2.44 billion in revenue in 2024 (up 26%) and held roughly 26% of the global DSP market in 2023, while Amazon’s ad business has swelled into a ~$31 billion industry. During that time Amazon DSP has expanded beyond Amazon’s own sites into third-party apps and premium publishers, and The Trade Desk has layered on advanced AI (its Koa engine) and identity solutions (UID2/OpenPath) to stay competitive.
A key difference is data access. Amazon DSP leverages first-party shopper data (searches, purchases, Prime activity, etc.) for deterministic targeting. This means Amazon ads can be served to consumers well along the purchase path – for example, people who viewed or bought similar products – yielding high conversion efficiency. By contrast, The Trade Desk relies on third-party cookies and token-based IDs across the open web. Its recent UID 2.0 initiative helps maintain a persistent ID in a privacy-first way, but it remains less precise than Amazon’s login-based signals.
Both platforms now support first-party data uploads, but Amazon has built-in tools. For example, Amazon introduced an Ads Data Manager so advertisers can securely import CRM or CDP data (e.g. customer email lists) into Amazon DSP and Amazon Marketing Cloud. By overlaying brand CRM signals onto Amazon’s shopper data, advertisers create enriched audience segments and launch premium deals that leverage both retailer and publisher insights.
Amazon DSP offers premium Amazon-owned inventory (product pages, Fire TV, Freevee, IMDb TV, Twitch, etc.) as well as curated third-party ad exchanges. In Q2 2025, Amazon reported that U.S. advertisers could reach over 300 million people across its ecosystem. The Trade Desk, by contrast, connects to tens of thousands of publisher sites and streaming channels globally, excelling at scale. Amazon DSP is a key part of growth for media buyers and brands on Amazon.
Amazon has also secured exclusive CTV partnerships — giving DSP advertisers access to Disney+, ESPN, and Hulu. These deals expanded Amazon’s CTV footprint dramatically in 2025. Despite premium inventory, Amazon DSP CPMs tend to run below The Trade Desk’s average, partly due to Amazon’s direct supply relationships and curated audience pools.
Amazon DSP shines in attribution. Because Amazon owns the retail checkout, advertisers can directly measure how ads influence shopping actions (clicks, product detail views, adds-to-cart, purchases). Campaigns can be tied back to sales in real time, delivering closed-loop ROI metrics.
The Trade Desk provides robust analytics and outcome-based measurement but lacks direct retail data. Many agencies are rebalancing budgets into Amazon DSP in 2025 for better ROAS and clearer insights.
Historically, Trade Desk has been a “power-user” DSP with advanced transparency and controls, while Amazon DSP was once viewed as clunky. That has changed: Amazon’s new UI/UX delivers clean dashboards, frequency capping, forecasting tools, and streamlined workflows. The result: a trader-friendly interface that competes directly with Trade Desk. Both companies now offer managed-service options and training academies for onboarding.
Amazon DSP features “Performance+,” an AI-driven optimization suite that aligns bids with conversion and ROAS targets. In beta tests, advertisers saw an average 51% reduction in acquisition cost. You can explore this in Amazon’s unBoxed 2024 update.
The Trade Desk’s AI, “Koa,” optimizes across devices and channels using open-web signals, making it powerful yet more exposed to privacy changes. Amazon’s AI benefits from real purchase data, giving it a stronger retail insight advantage.
Advertisers frequently report lower CPMs on Amazon DSP than on The Trade Desk, even for premium CTV placements. Amazon’s direct supply relationships and household-level frequency caps reduce waste, while Trade Desk’s exchange-driven approach introduces more bidding friction and costs.
In practice, many advertisers use both. However, recent reports show budgets tilting toward Amazon DSP for better ROAS and insights. The Trade Desk remains a powerhouse for scale but faces mounting competition as Amazon expands.
No single DSP is perfect for every advertiser. But Amazon DSP’s unique access to shopper data, improved UI, and AI-backed optimizations give it a strong edge for ROI-focused brands. SmartScout’s own research highlights the importance of granular audience segmentation and testing for success on Amazon DSP. For more context, see Advertising Solutions by Amazon, which explores how sellers boost visibility and sales across Amazon’s ad ecosystem.
