IntroductionWhat is Amazon DSP? The Mechanism of Ads EC Newcomers Should Know and Decisive Differences with Sponsored Ads

To maximize Amazon sales, Ad Operations is unavoidable. However, many EC managers stop at 'Sponsored Ads' and fail to fully utilize the true value ofAmazon DSP (Demand-Side Platform)lying beyond. This article explains Amazon DSP basics, decisive differences from Sponsored Ads, and its role in full-funnel strategy from a senior consultant's perspective.

A conceptual visual representing Amazon DSP data flow and programmatic advertising ecosystem showing cloud data and audience targeting.

1. Basic Definition and Mechanism of Amazon DSP

Amazon DSP is a platform that utilizes huge First Party Data (1st Party Data) possessed by Amazon and can programmatically distribute display ads and video ads not only within Amazon site but also to external websites and apps.

The biggest feature is not just buying 'slots', buttargeting based on 'people (audience)'. For example, approaches based on specific buying behaviors (signals) like 'users who viewed products in a category in last 30 days but didn't buy' are possible.

Technical diagram showing Amazon first-party data segments including lifestyle, in-market, and remarketing audiences for programmatic ad delivery.

2. 3 Decisive Differences with Sponsored Ads

What newcomers should understand first is difference from search-linked Sponsored Ads (SP/SB/SD). It can be organized (MECE) with following 3 axes.

3. Transition of Ad Indicators and Understanding CPM Model

In DSP operation, we emphasize quality of impressions and brand lift, not just ROAS (Return On Ad Spend). The following graph is image of transition of brand search volume accompanying awareness expansion after introduction of general DSP.

Business infographic illustrating the full-funnel marketing strategy from awareness and consideration to purchase and loyalty using Amazon advertising products.

4. Advanced Analysis Utilizing AMC

What unleashes the true value of Amazon DSP is utilization ofAMC (Amazon Marketing Cloud). AMC visualizes conversion contribution from 'overlap contact' of Sponsored and DSP ads. This allows calculating true ROI (attribution) of awareness measures difficult to evaluate singly.

FAQ

Q. Is a minimum budget required to start Amazon DSP?
A. In "Managed Service" contracting directly with Amazon, certain minimum budget is set, but with "Self Service" through certified agency, it is possible to start with more flexible budget setting.
Q. Can I use it even if I am not a seller?
A. Yes. Major feature is that Amazon DSP can be used by non-sellers (non-endemic) for purpose of inducing to own site such as insurance, automobile, travel service, etc.

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Summary

Amazon DSP is powerful tool that can integrally manage from "awareness to new customers" to "revisit of existing customers" utilizing Amazon's powerful data. By clarifying role division with Sponsored Ads and understanding characteristics of CPM model, sustainable brand growth not limited to simple harvesting can be realized. Why not start with current customer contact analysis using AMC etc.?

Published: 2026-2-10 / Author: Yuta Ito

References

  • [1] Amazon Advertising - DSP Overviews
  • [2] Amazon Marketing Cloud (AMC) Technical Documentation
Disclaimer: This article is for informational purposes only and does not substitute for professional advice. Specific results are not guaranteed.