Struggling to choose between Amazon DSP vs Sponsored Ads? With so many advertising options on Amazon, it’s easy to feel unsure about where to invest.
Advertising is essential to stand out among billions of listings, but not all ad types work the same, or fit every budget. That’s why understanding the differences between Amazon DSP and Sponsored Ads is crucial for aligning with your goals, audience, and resources.
In this post, our Amazon agency will walk you through the core features, pros, and limitations of each. By the end, you’ll have a clear picture of how they work and which one is the right fit for your brand.
Table of Contents
What Is Amazon DSP?
Amazon DSP (Demand-Side Platform) is an advertising solution that allows brands to run display, video, and audio ads both on and off Amazon. It uses shopper data like browsing behavior and purchase history to target audiences, even when they aren’t actively searching for your product.
With DSP, advertisers can reach customers across Amazon-owned sites like IMDb and third-party websites, apps, and streaming platforms. It’s available to both Amazon sellers and non-sellers, making it a versatile option for increasing brand visibility and driving traffic.
Key Features of Amazon DSP
While many sellers may not be familiar with how DSP ads work, they offer powerful features that can elevate your advertising efforts:
- Wider Reach
Ads can appear not just on Amazon but also on third-party websites, mobile apps, and Amazon-owned properties. - Advanced Targeting
Use Amazon’s customer data to target audiences based on demographics, shopping history, browsing behavior, and more. - Flexible Ad Formats
Choose from display ads, audio ads, video ads, and OTT (Over-The-Top) streaming ads depending on your campaign goals. - Cross-Channel Campaigns
Run unified ad campaigns across different platforms to maintain consistent messaging and branding. - Self-Service or Managed Service
You can either manage campaigns on your own or work with an Amazon partner agency to handle the setup and optimization.
Different Types of Amazon DSP Ads
There are several types of DSP ads, each serving a different purpose across various platforms:
- Display Ads
Static or animated ads that appear on Amazon and third-party websites across desktop and mobile. - Banner Ads (Mobile)
Mobile-friendly ads typically displayed at the top or bottom of apps and pages. - Interstitial Ads (Mobile)
Full-screen ads that appear during app transitions, grabbing attention without being too disruptive. - Video Ads
Air across Amazon Prime Video, Fire TV, Twitch, and more, making them ideal for brand storytelling. - Audio Ads
Short clips played on Alexa-enabled devices, perfect for reaching consumers during music or podcast streams. - Text + Image Ads
A basic combo of short text and visuals that blend into content while still delivering a message effectively.
Pros and Cons of Amazon DSP
Amazon DSP has its benefits, but it’s important to weigh both the advantages and disadvantages:
Pros of Using Amazon DSP
- Target specific audience segments using a vast array of shopper data.
- Custom creatives, including videos, provide control over your brand’s presentation.
- Allows for retargeting of users who visited your website with pixel tracking.
- Track purchases of specific ASINs for deeper insights.
Cons of Using Amazon DSP
- Requires a high minimum spend, often around $35,000, which might be too high for smaller brands.
- Complex setup and management, especially for those without experience.
- Separate console interface makes it harder to manage alongside other Amazon Ads.
- Less effective for low-traffic products, which may reduce ROI potential.
What are Amazon Sponsored Ads?
Amazon Sponsored Ads are pay-per-click (PPC) campaigns that help sellers boost product visibility directly on Amazon. These ads are accessible to businesses of all sizes and are easy to set up through a self-service platform.
They appear in high-traffic areas like search results and product detail pages, making them effective for generating immediate sales. Sponsored Ads are ideal for staying visible, building brand recognition, and reaching shoppers during key moments in their purchase journey.
Key Features of Amazon Sponsored Ads
Sponsored Ads are often the first step sellers take into Amazon advertising, and for good reason. These campaigns are built to be flexible, measurable, and accessible to all experience levels.
- Keyword Targeting
Target specific search terms to ensure your ads appear when shoppers search for related products. - Automatic and Manual Options
Let Amazon handle targeting automatically, or take full control by selecting your own keywords and bids. - Budget Control
Set daily budgets and bids to keep costs in check. - Performance Metrics
Monitor impressions, clicks, sales, and ACoS to measure campaign effectiveness. - Negative Keywords
Exclude irrelevant terms to improve targeting precision. - Cost-Per-Click Model
Only pay when someone clicks your ad, making it easier to manage ROI and test strategies.
Different Types of Amazon Sponsored Ads
There are several ways to advertise products using Sponsored Ads, each catering to different goals:
- Sponsored Products
Promote individual Amazon listings within search results and on product pages. Great for boosting visibility and driving direct sales. - Sponsored Brands
Feature your brand with a custom headline, logo, and product selection. Ideal for brand awareness and directing traffic to your Store or listings. - Sponsored Display
Retarget shoppers both on and off Amazon based on their browsing behavior. Great for re-engaging potential buyers.
Pros and Cons of Amazon Sponsored Ads
Like DSP, Sponsored Ads have their pros and cons. Understanding them will help you decide if they’re the right fit for your goals:
Pros of Using Amazon Sponsored Ads
- Immediate visibility for new listings or low-traffic products.
- Ability to target customers using specific keywords or product targeting.
- Boosts brand visibility by appearing at key points in the shopping journey.
- Scalable budget options allow for testing and optimizing campaigns.
- Can increase sales and help improve organic product ranking.
Cons of Using Amazon Sponsored Ads
- The cost of running Sponsored Ads has increased, which can be tough for smaller sellers.
- Requires continuous testing, monitoring, and optimization, which can be time-consuming.
- Lack of experience may lead to poor performance or wasted ad spend.
- Ads are subject to Amazon’s algorithm, which may not always prioritize the best-performing search queries.
Amazon DSP vs Sponsored Ads: Key Differences
Amazon DSP and Sponsored Ads both serve as valuable tools for sellers, but they have major differences that can impact your selling strategy. Understanding these key differences is important so you can choose the right solution to optimize your advertising efforts based on your goals and resources.
Eligibility
Amazon DSP Eligibility
- Available to Amazon sellers and non-sellers (including DTC brands, agencies, and vendors).
- Open to advertisers who want to send traffic to Amazon listings or external websites.
- Can be accessed in two ways:
- Self-service: Requires platform knowledge and is typically offered by DSP partners; minimums may vary (often starting around $10,000–$15,000 per month).
- Managed-service: Run by Amazon’s internal team; requires a higher budget, usually starting at $50,000.
- Self-service: Requires platform knowledge and is typically offered by DSP partners; minimums may vary (often starting around $10,000–$15,000 per month).
- Advertisers must comply with Amazon’s ad policies, though Buy Box or Brand Registry enrollment is not required.
- You don’t need to sell on Amazon to use DSP.
Amazon Sponsored Ads Eligibility
- Must have an active Amazon professional seller account.
- Products must be new (not used or refurbished).
- Must be able to ship to all U.S. addresses (for the U.S. marketplace).
- For Sponsored Brands, enrollment in Amazon Brand Registry is required.
- For Sponsored Products, the product must be Buy Box eligible.
- Listings must be relevant to the target keywords in order to serve ads.
Cost Structure
Amazon DSP Cost Structure
- Requires a higher minimum spend, typically starting at $35,000 for Amazon-managed service.
- Self-service DSP (through approved partners) may start around $10,000–$15,000 per month.
- Uses a CPM model, where you pay for every 1,000 impressions; ideal for campaigns focused on brand awareness.
Amazon Sponsored Ads Cost Structure
- Has no official minimum budget, allowing sellers to start with as little as $1 per day.
- Operates on a PPC model, where you only pay when someone clicks your ad.
- Budget is flexible and scalable, making it suitable for small to large sellers aiming for direct conversions.
Ad Management and Complexity
Amazon DSP Ad Management and Complexity
- Requires familiarity with programmatic advertising concepts and tools.
- More complex interface with a steeper learning curve.
- Ideal for brands with in-house specialists or those working with a full-service Amazon agency.
- Offers advanced audience targeting and in-depth campaign analytics.
- Custom creative uploads add an extra layer of campaign setup complexity.
Amazon Sponsored Ad Management and Complexity
- Built into the Amazon Ads Console for a more intuitive experience.
- Features like automated bidding and targeting reduce manual work.
- Ad content is often auto-generated using product listings and templates.
- Well-suited for sellers with limited time or advertising experience.
- No need for outside help; most sellers can manage campaigns on their own.
Targeting Capabilities
Amazon DSP Targeting Capabilities
- Behavioral Targeting: Reach users based on past browsing and purchase behavior.
- Contextual Targeting: Serve ads next to related content across the web.
- Lifestyle Segmentation: Target users based on interests like fitness, travel, or fashion.
- Retargeting: Reconnect with shoppers who previously viewed your product or similar listings.
- Lookalike Audiences: Reach new customers who resemble your existing buyers.
- Custom Audiences: Build detailed segments using Amazon’s data or your own first-party data.
- Expanded Reach: Place ads not just on Amazon, but also on partner sites and third-party websites.
Amazon Sponsored Ads Targeting Capabilities
- Keyword Targeting: Show ads based on shopper search terms.
- Product Targeting: Advertise on specific ASINs or within product categories.
- Automatic Targeting: Let Amazon’s algorithm place ads for you.
- Views Remarketing: Target shoppers who previously viewed your product or similar ones.
- Interest-Based Targeting: Reach users with relevant shopping habits.
Creative Control
Amazon DSP Creative Control
- Design custom static or video ads with your own images, branding, and messaging.
- Feature up to 20 ASINs using Dynamic eCommerce Ads with pricing and reviews.
- Run ads across Amazon-owned properties, third-party sites, and apps.
- Use Amazon’s creative templates for quicker setup if needed.
Sponsored Ads Creative Control
Sponsored Ads are more standardized, and creative options depend on the specific ad type:
- Sponsored Products: No customization; Amazon auto-generates the ad using your product listing.
- Sponsored Brands: Limited control; customize the logo, headline, and featured products.
- Sponsored Display: Minimal input; Amazon uses product info and allows changes only to the headline and brand logo.
| Feature | Amazon DSP | Amazon Sponsored Ads |
|---|---|---|
|
Who Can Use It |
Sellers and non-sellers |
Professional sellers with active listings |
|
Cost Model |
High minimum spend |
No minimum spend |
|
Minimum Budget |
~$35,000 (Managed); ~$10,000+ (Self-Service) |
You set daily and campaign budgets |
|
Management Type
|
Self-service (via DSP partner) or Amazon-managed |
Self-service via Amazon Ads console |
|
Targeting Capabilities |
Behavioral, lookalike, demographic, retargeting
|
Keywords, ASIN targeting, limited remarketing |
|
Ad Formats |
Video, audio, display, OTT, banner, interstitial |
Sponsored Products, Brands, and Display |
|
Creative Control |
Full control over visuals and messaging |
Mostly auto-generated based on listings |
|
Ideal For |
Brands focused on awareness, retargeting, DTC growth |
Sellers focused on visibility, sales, and ROI |
|
Ease of Use |
Complex; best for agencies or experienced teams |
Simple, accessible for all seller levels |
|
Performance Tracking |
Advanced reporting includes non-advertised ASINs |
Basic to moderate reporting via Amazon Ads dashboard |
Amazon DSP vs Sponsored Ads: Which is Right for Your Brand?
Still on the fence between Amazon DSP and Sponsored Ads? This quick quiz will help you figure out which option aligns better with your business goals, budget, and target audience.
FAQs About Amazon DSP and Sponsored Ads
Choosing the Right Fit: Make Your Ad Spend Count
Amazon DSP and Sponsored Ads each offer distinct advantages depending on your goals, budget, and where your audience is in the buying journey. While DSP shines in upper-funnel brand awareness and retargeting, Sponsored Ads are ideal for driving immediate sales and visibility within Amazon search.
Your brand’s stage, ad budget, and target customer behavior should guide which route you take or whether you use both in tandem. With the right strategy, you can maximize every advertising dollar and reach your ideal customer more effectively.
Need help managing your Amazon advertising campaigns? Contact our Amazon agency and let our experts handle your ads.
