With over 350 million products listed on Amazon, standing out is harder than ever. Luckily, the Amazon Demand Side Platform (DSP) can help you reach the right audiences on and off Amazon.
The problem? Amazon DSP campaigns are complex and require a deep understanding of Amazon advertising, bidding, and customer targeting. If you don’t have the expertise, you risk burning through ad spend with little return.
Thankfully, sellers don’t have to figure it out alone since Amazon DSP managed-service providers exist. They manage campaigns from targeting to reporting, so sellers can skip the learning curve and start seeing results faster.
In this blog post, we will explain how Amazon DSP offers powerful ad targeting, but many sellers struggle with its high cost, complex setup, and steep learning curve. We will also discuss how a managed-service provider handles strategy, targeting, and optimization, helping sellers run effective campaigns without wasting time or ad spend.
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Why Most Sellers Struggle With Amazon DSP
Amazon DSP can help you reach high-intent shoppers, but it’s not easy to get right, especially without experience. Many sellers jump in, hoping for big returns, but quickly realize the platform comes with a steep learning curve and high stakes.
Here are the most common issues Amazon sellers face when trying to manage DSP on their own:
- High Entry Costs
DSP isn’t cheap, so sellers often face minimum spend requirements that go well beyond what they’re used to with Sponsored Ads. Without a proper strategy, it’s easy to burn through thousands without seeing a return. - Complicated Setup and Learning Curve
Amazon DSP isn’t plug-and-play. Understanding how to segment audiences, set bids, and optimize campaigns takes advanced knowledge and time that sellers often don’t have. - Hard-to-Read Reports
DSP reports are packed with data, but most sellers don’t know how to turn that data into actionable decisions. Without clear insights, optimizing for performance becomes guesswork. - Limited Control Over Campaigns
Unlike PPC, DSP doesn’t offer the same hands-on control. Sellers used to tweaking keywords or budgets on the fly may feel stuck when campaigns underperform. - Data Sync Issues with Other Tools
If your backend tools don’t sync with Amazon smoothly, you risk dealing with mismatched reports, stockouts, or pricing errors, all of which hurt the customer experience. - Time-Intensive Campaign Management
DSP success doesn’t come from “set it and forget it”. Campaigns need consistent monitoring, adjustments, and creative updates, which is something most busy Amazon sellers can’t keep up with alone. - Lack of Support and Slow Responses
When something goes wrong, getting help from Amazon isn’t always fast or clear. That’s a problem when every hour of ad spend counts. - Tough Competition in Saturated Niches
Even with DSP, it’s hard to stand out when your competitors are spending big and optimizing constantly. Without a strong strategy, your ads may get buried.
What Is an Amazon DSP Managed-Service Provider
Amazon DSP allows sellers to run display and video ads both on and off Amazon using advanced audience targeting. There are two ways to access it: self-service, where you manage everything on your own, and managed-service, where DSP experts handle the campaigns for you.
Here’s a quick comparison of self-service vs managed-service to help you understand how each option works:
| Feature | Self-Service | Managed-Service |
|---|---|---|
|
Who manages campaigns |
You or your in-house team |
Amazon or a third-party DSP agency |
|
Control & flexibility |
Full control over setup, targeting, and optimization |
Limited control, but guided by experts |
|
Expertise required |
High; Ideal for experienced advertisers |
Low; Great for those new to DSP or lacking resources |
|
Support level |
No direct support; DIY model |
Ongoing support and strategy consultation |
|
Tool access |
Full access to Amazon DSP tools and features |
Access is handled by the provider |
|
Best for |
Brands with a skilled internal team and technical knowledge |
Brands that want expert management without the learning curve |
|
Examples |
A large brand with an in-house media buying team |
A growing seller launching DSP for the first time |
Now, an Amazon DSP managed-service provider is a team of professionals that takes care of everything, from campaign setup and audience targeting to optimization and performance reporting. They simplify the process and ensure your campaigns are run effectively without you needing to master every detail.
This option is ideal for sellers who lack the time or experience to manage DSP campaigns themselves. While self-service gives you full control, managed-service offers full support, helping you avoid costly mistakes and reach your goals faster.
Key Services Offered by Amazon DSP Managed-Service Providers
There are a lot of services that Amazon DSP managed-service providers offer to make it easier for sellers to launch, scale, and optimize their advertising without guesswork. Below are the key services you can expect from a solid provider:
- Campaign Strategy & Setup
They help you build a custom advertising strategy based on your brand goals, target audience, and budget, then handle the technical setup from end to end. - Audience Targeting & Segmentation
Providers use first-party and third-party data to target relevant shoppers based on behavior, interests, and purchase intent on and off Amazon. - Creative Development & A/B Testing
They assist with designing static and video ads that convert, then run split tests to see what works best and optimize from there. - Budget Management & Bidding Optimization
Your ad spend is closely monitored, with bid adjustments made regularly to improve ROAS while avoiding overspending. - Performance Reporting & Insights
Providers deliver clear reports that show how your campaigns are doing, plus actionable insights to improve results over time.
Tips to Find the Best DSP Managed-Service Provider
Choosing the right Amazon DSP managed-service provider can make or break your ad performance. You need a partner who not only understands the platform but also aligns with your business goals and budget.
1. Know What You’re Trying to Achieve
Start by defining your ad goals, whether it’s driving sales, building brand awareness, or retargeting. A clear objective helps you find a provider who builds a strategy around your priorities.
2. Look for Proven Amazon DSP Experience
Work with a provider that has experience running Amazon DSP campaigns for brands similar to yours. Industry knowledge and a track record of results are non-negotiable.
3. Review Their Reporting and Transparency
You should have access to performance reports that actually make sense. If they can’t explain where your ad spend is going or what’s working, walk away.
4. Ask About Campaign Strategy and Optimization
A strong provider should confidently explain how they set up, monitor, and scale DSP campaigns. If they’re vague or overly generic, that’s a red flag.
5. Evaluate Communication and Support
Quick response times and clear communication are essential. Make sure you’ll have a dedicated point of contact who keeps you in the loop and answers your questions.
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Red Flags When Hiring an Amazon DSP Managed-Service Provider
Choosing the right DSP managed-service provider isn’t just about who promises the most, but about who delivers with consistency, clarity, and real strategy. Here are the top red flags that should make you think twice before signing a contract.
1. No Clear Reporting or Performance Transparency
If your provider can’t show you exactly where your ad dollars are going or what results you’re getting, that’s a serious problem. You should have full access to campaign performance, spend breakdowns, and audience insights.
2. Unresponsive or Poor Communication
When a provider ghosts your emails, delays responses, or gives vague updates, expect bigger issues down the line. A reliable partner should keep you looped in with regular check-ins and fast support when things go sideways.
3. Cookie-Cutter Strategy for Every Brand
Amazon DSP is not plug-and-play since it needs tailored audience targeting and funnel-specific creatives. If the provider pushes the same generic strategy on every client, they’re not focused on your brand’s unique goals.
4. Lack of Technical and Platform Expertise
If they can’t explain how Amazon’s audience segments work or confuse DSP with other ad types, run. You need a team that actually understands the platform and how to scale it with the right data, bidding, and creative mix.
5. Overpromising with No Proof
Beware of wild claims like “guaranteed ROAS in week one” or “5x your sales instantly”. A solid provider focuses on sustainable growth and backs up their track record with case studies, not just sales talk.
FAQs About Amazon DSP Managed-Service Providers
Amazon DSP Doesn’t Have to Be a Gamble
When you’re selling on Amazon, the goal is to get noticed, and with ad options like DSP, this becomes possible. However, without the right strategy or experience, you could end up wasting time and money on DSP.
So, it’s a good thing you can choose to partner with a trusted Amazon DSP managed-service provider in cases like this. They’ll help you run smarter campaigns, avoid costly mistakes, and actually see results.
Want to work with a DSP managed-service provider that actually knows how to drive results? Reach out to our full-service Amazon agency!
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