What is Amazon DSP and How Does It Work

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Amazon DSP is an advertising platform that helps companies reach their customers. Amazon DSP does this by targeting ads based on customer information, such as location and browsing history. This allows for more relevant advertisements since the ad will be tailored to what the user has been doing recently instead of just one time.

Amazon DSP (Digital Services Platform) is a cloud-based service that allows developers to offer digital services and applications. It was released in 2014, but it has been around since 2007. This article will provide a brief overview of what Amazon DSP is and how it works.

We are all familiar with the advantages of purchasing what we need from Amazon, as well as items that we do not require. But have you considered the consequences of utilizing Amazon as a platform for advertising?

Advertising is a multibillion-dollar industry that is very successful, and business models are always evolving to generate more inventive and diversified advertising and marketing approaches.

This is a guide to how DSPs work within Amazon and the reasons why you should advertise on the site, whether you’re looking to promote something with an easy to follow popup, a small business hoping to grow your audience, or even an intrigued customer wanting to learn more about the marketing process. 

Advertisers’ software, known as a Demand Side Platform (DSP), is used to purchase advertising from a marketplace.

Simply said, a DSP is a collection of advertising slots that corporations and other organizations may purchase and contribute to the overall number of advertisements that consumers see. When looking for certain items on Amazon, buyers may detect the employment of a DSP.

Because it is mostly automated and dependent on user behavior, this is referred to as Advertising through programmatic. This is why you could encounter certain adverts when buying online; websites save your information to make comparable product suggestions momentarily. 

Although it may seem complicated at first sight, we’ve put together this guide to help you learn more about DSPs, including some basic concepts and commonly asked questions. 

DSPs purchase advertisements programmatically on and off Amazon to reach new and current audiences. This essentially implies that using a DSP makes mass promotion of companies and goods more feasible.


Amazon is a good example since it shows how simple it is to extract stats from your previous searches and give you something comparable.

Another advantage of utilizing Amazon is that quality standards ensure brand protection while also allowing companies to create campaigns and market their items.

DSPs use a mechanism known as Advertising through programmatic, which requires you to compete with other brands in a bidding process as a company owner, publisher, or even charity. 

Advertising through programmatic

This refers to the automated buying and selling of online advertising that allows certain brands to receive dominant advertising, and others need to compete for available spots during a bidding war. There are two different types of Advertising through programmatic, covered below. 

  • Advertisers choose the target demographic for their adverts and the amount they’re ready to pay in real time bidding. The result is a bidding war between you and other firms vying for the same audience. Algorithms take into consideration surfing history, time of day, and IP address, and the winner with the highest bid at the conclusion of the time period gets the spot. 
  • Programmatic direct is the more conventional option, since it assures ad placement in prime spots. Publishers and advertising often strike direct arrangements.

Advantages and disadvantages

These are some key Advantages and disadvantages of using a DSP that we thought would be worth reading into. For more information, check out DSP product advertising on Amazon and PPC management. 


  • Efficiency- Everything is controlled from a single dashboard, allowing you to spend less time on administrative activities and more time on the quality and appeal of your advertisement. 
  • Many DSPs supply organizations with more data than a single network can. This implies that companies are more likely to gain from more marketing, increased client numbers, and increased overall revenue.  
  • More data implies more precise targeted advertising and landing pages after a click. When companies take the time to analyze the influence of data on targeted marketing, consumers are less likely to notice random adverts. Customers are more inclined to click on tailored adverts and hence spend money on items when there are more of them. 
  • Help- Because DSPs are often larger than a single domain, you are more likely to get more support while utilizing one. There is considerably more personal involvement accessible than the standard customer helpdesk model, which is more likely to be worth your time and actually valuable. 
  • When compared to regular websites, DSPs provide tremendous levels of coverage for your ad since they have access to more data. 


  • Cost- With higher advertising rates, it’s understandable that DSPs will cost more than standard coverage (ACOS). It is unquestionably a large investment that will take some time to pay off. Because of this, we can only propose DSPs if your budget permits it. 
  • Complexity- DSPs have a lot of jargon, not to mention the influence that massive volumes of data may have. If you’re not cautious, you can find yourself with an extremely difficult duty load. Make sure to do your homework and look at Amazon’s advice page for further information. 

Amazon DSP Frequently Asked Questions

We’ve addressed some frequently asked questions so you don’t have to look for answers on the internet. 

Who is eligible to use Amazon DSP?

A: Advertisers that sell on Amazon or other sites may utilize DSPs to give bespoke advertising using mobile advertising. You don’t have to sell your goods on Amazon or even have an ad developed; Amazon provides step-by-step instructions and pre-made e-commerce templates. 

How Can I Track My Campaign’s Progress?

A: To compile the most accurate data, Amazon employs both industry-standard and Amazon-specific indicators, such as reach, frequency, and viewability of users. When using the Amazon Marketing Cloud, you can also get custom analytics. 

What Is The Difference Between Sponsored Display And Amazon DSP?


A: Amazon provides for wider coverage since programmatically purchasing advertisements is encouraged, while sponsored display is a self-service display ad offering.

There is certainly a lesser level of customer assistance and counseling than on Amazon DSPs.

What kind of ads can I purchase with Amazon DSP? 

The Amazon DSP service allows you to create audio, display, and video adverts. As a result, you have a lot of leeway in creating a fully unique ad display and experience for the consumer. 

Who is eligible to use Amazon DSP? 

Amazon DSP is available to advertisers in North America, South America, Europe, the Middle East, and Asia Pacific. 


To recap, DSPs are advertising tactics used by corporations and product manufacturers to boost average income earned while optimizing audience reach.

Money and marketing power the contemporary world, therefore it’s no surprise that new terms for advertising strategies have emerged.

Customers are well aware of the impact their data has on advertising analytics, and they are more willing to spend money on items that are personally relevant to them.

Brands want more precision, which comes from more data. DSPs allow you to create a highly personalised experience, and they are well worth the investment. 

“Delivery service partners” is another definition for the acronym. This is noteworthy because it emphasizes the importance of good customer service to Amazon.

More data must be gathered in order to get the most accurate search results and product recommendations. Because so many firms need increased advertising prices and media attention, the importance of marketing should not be disregarded.

In customer service and outreach, the media is equally as important as it is in advertising. 


Amazon DSP is a service that allows Amazon sellers to offer their products through its website. It also offers other features such as analytics and marketing tools. Reference: amazon dsp logo.

Frequently Asked Questions

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