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Selling on Amazon has been exploding in popularity and there are some very good reasons for it. The low initial investment catches the eye of entrepreneurs looking to add to their income flow. Then, there’s the hard-to-pass-up access to Amazon’s enormous customer base. 

That’s why Amazon PPC (or pay per click) ads are a must for an Amazon seller. Using an Amazon ad helps drive brand awareness, and directs traffic to your Amazon Store. It’s a strategy that has made it possible for Amazon FBA sellers to compete in an increasingly crowded marketplace.

To help you understand Amazon advertising, we’ve written a three-part series on the different ad formats, including Sponsored Product, Sponsored Brand, and Sponsored Product Display ads.

But, there comes a time when online advertisers might want more from their Amazon PPC ads.

The Amazon DSP landscape has transformed dramatically in 2025. With revolutionary updates to its user interface, game-changing fee structures, and privacy-first targeting capabilities, Amazon DSP is no longer just an option for sellers, it’s becoming the preferred choice for advertisers across all industries.

Why Amazon Sellers Might Need MORE Than PPC Advertising

Amazon PPC advertising was once the secret weapon for getting ahead of the competition. Today, it’s table stakes. Every seller is running Sponsored Product, Sponsored Brand, and Sponsored Display campaigns, which means the playing field has leveled considerably.

Forward-thinking Amazon sellers are now turning to Amazon DSP for several compelling reasons:

Taking Advantage of Valuable First-Party Data

Simply put, first-party data is information collected by the web property or app itself. For example, when a seller collects subscriber and buyer information from their Shopify store, that’s first-party data. Similarly, first-party data is the result when information is collected from Amazon shoppers.

Recently there have been many restrictions coming from Apple, Google, and other platforms focused on the sharing of data to third parties. However, when you gain access to that data from a voluntary opt-in through a property you control, you aren’t sharing anything with a third party. 

That’s perfectly fine!

This means that all tracking throughout properties you own or within your properties owned by the ad platform you’re using will still work.

Amazon is a huge collector of their users’ data. Whether you’ve put a book on your wishlist or were browsing for a new pair of (black) running shoes on Tuesday, they’re aware of it! You won’t find audience insights as powerful anywhere else.

So, what is this magical Amazon advertising platform?

What is Demand-Side Platform Advertising? 

DSP, (or demand-side-platform) is an algorithm-based programmatic ad platform that serves targeted messaging to ideal audiences at the perfect time.

Self-serve DSP is a great advertising platform because of two very important things, unparalleled audience targeting capabilities and the exclusive creative assets exclusive to DSP that help your product or brand stand out from the crowd.

Demand-Side Platform uses algorithms to collect data from online users in order to show them ads that cater to their needs. The data that DSP collects focuses on demographics, interests, device usage, and online behavior. This information is invaluable to Amazon sellers as well as an Amazon marketing agency. 

Then, an Amazon DSP campaign does the heavy lifting of identifying the optimum location and medium for your programmatic ads.

In the last year, access to the kind of data that helps marketers (and Amazon sellers) make these decisions has become increasingly rare.

DSP’s Audience Targeting Capabilities

Standing out on Amazon is a question of differentiating your product (and brand). To do that, Amazon sellers spend a lot of time tailoring their creative assets to reach increasingly sophisticated buyers. 

At the same time, Amazon sellers realize that with the rapid pace of eCommerce expansion, you cannot market to EVERYONE out there. That’s why audience targeting has become a big part of Amazon PPC management. DSP has doubled down on that. 

• Amazon’s first-party data and DSP’s algorithmic capabilities combine to allow you to craft an advertising strategy that serves ads to increasingly relevant audiences of shoppers 
• Use DSP to drill down in niches to target specific demographics with tactically precise campaigns 
• Retargeting helps build customer loyalty 
• Easily remarket to customers who viewed but didn’t purchase your products

Exclusive DSP Creatives

• Set yourself apart from your competitors with custom creatives and carefully branded content that tell your brand story  
• Increase your presence on prospective buyers’ path to purchase
• YOU decide how and when customers first interact with your brand
• DSP’s data transparency helps you understand your brand’s audiences and leads to more relevant creative ad campaigns
• Remarket to those customers already considering your product with cutting-edge product video

What is Amazon Attribution? 

Understanding your campaign’s true impact has never been more important—or more possible with Amazon DSP’s enhanced measurement capabilities.

Amazon Attribution 2.0

The platform now offers sophisticated attribution modeling that goes beyond simple last-click attribution:

• Conversion Path Reporting: Trace customers’ 30-day journey to conversion, revealing the most effective ad sequences
• Cross-Channel Attribution: Understand how DSP campaigns influence performance across all Amazon advertising types
• Amazon Marketing Cloud Integration: Access privacy-protected analytics for deeper campaign insights

Real-Time Performance Optimization

Amazon DSP’s Performance+ AI-driven optimization tool has expanded beyond prospecting to include remarketing and retention options, helping advertisers achieve diverse KPIs automatically.

Analyzing attribution is key for Amazon sellers and advertisers as it allows them to understand actual Return On Advertising Spend (ROAS) performance for different aspects of their campaigns. They can optimize investment towards products, targeting methods, placements that demonstrate the highest sales conversions driven.

What is Amazon Marketing Cloud? 

Amazon Marketing Cloud (AMC) is a suite of marketing analytics products for brands selling on Amazon. AMC provides brands visibility into consumer shopping behaviors through actionable analytics and attribution across the customer journey.

In order to optimize advertising strategy across channels and demonstrate marketing impact on business results, improved access to actionable data and insights is required. By activating Amazon Marketing Cloud (AMC), brands can gain transparency into customer engagement and conversion behavior data across the purchase funnel.

Amazon Marketing Cloud (AMC) has become an indispensable tool for sophisticated advertisers, providing actionable insights that drive strategic decisions.

Key AMC Capabilities:

• Customer Journey Analytics: Track interactions throughout the entire purchasing funnel
• Cross-Channel Measurement: Connect marketing activities to conversions across all touchpoints
• Custom Audience Creation: Build precisely targeted segments based on specific behaviors
• Campaign Attribution: Determine true ROI across different marketing channels

The New Ads Data Manager

Amazon’s revolutionary Ads Data Manager allows you to securely upload first-party data once and use it across both Amazon DSP and AMC. This eliminates data silos and creates a unified approach to audience targeting and measurement. The system integrates seamlessly with major data providers like Salesforce, Treasure Data, and Tealium.

What is a “Programmatic” Ad? 

Programmatic advertising refers to the automated process of purchasing and selling online ads. This tactic affords advertisers the ability to place ads across multiple channels with little human interaction. The ad buying process is automated and constantly adjusted in real time. 

Increasingly sophisticated algorithms automatically choose the best ad spaces, both on and off of Amazon. You might have questions related to Amazon Sponsored Display vs DSP. Even though they are part of different advertising platforms, they share many similarities. 

In both cases, the algorithm is constantly learning from Amazon customers’ behavior. And, as with any artificial intelligence program, the more you use it, the smarter your ad campaign becomes.

Amazon DSP represents the evolution of programmatic advertising – automated, intelligent, and constantly optimizing. The platform’s algorithms automatically choose the best ad spaces both on and off Amazon, learning from customer behavior to improve performance over time.

Real-Time Bidding Advantages

• Advanced Bid Strategies: Implement tailored bidding strategies using proprietary data
• Bulk Adjustments: Make campaign changes across multiple line items simultaneously

Inventory Optimization: Access premium guaranteed inventory across top-tier publications

DSP Will Help You Grow Your Amazon Audiences!

Amazon is uniquely focused on their customers’ experience. You should be too! 

DSP allows you to upgrade your prospective customers’ experience in several different ways:

• Shoppers navigate to Amazon for a reason. Leverage the power of Amazon’s branding on your off-Amazon campaigns 
• The marketing funnel requires a different approach depending on the stage the shopper is at. DSP creates access to hundreds of metrics designed to drive performance at each stage of the funnel
• Amazon DSP is the only programmatic platform to report on Amazon conversions. Know, don’t guess on your metrics!

How Can You Take Advantage of Amazon DSP?

There are two options to put Amazon DSP advertising to work for you.

1. Managed by Amazon: The managed-service option is designed for companies that want access to Amazon DSP inventory, with consultative service, or for those with limited programmatic advertising experience. The managed-service option typically requires a minimum spend of $50,000 USD (minimum may vary per country).
2. (Managed) Self-service: Self-service customers are in full control of their campaigns. Self-service is a bit of a misnomer. This option can only be accessed through an Amazon marketing agency such as Canopy Management. Managed self-service provides sellers and Amazon marketing services with an attractive blend of control, with ready access to the agency’s DSP expertise. It also allows for more flexibility in ad spend. That’s not a small thing!

One of the biggest benefits of Canopy Management’s DSP Services is having the ability to combine the best of both options. Our Amazon PPC management services use algorithms to do a lot of the leg work. It’s the same thing with our DSP pros. That creates enough bandwidth for Canopy’s DSP Experts that they can be “hands-on,” 24/7 with our partners’ DSP advertising campaigns.

How to Maximize Your Amazon DSP Success

To fully leverage Amazon DSP’s capabilities, consider these strategic approaches:

1. Start with Clear Objectives

Define specific goals for your DSP campaigns:

• Awareness: Introduce your brand to new audiences
• Consideration: Present your product as a solution to customer needs
• Conversion: Drive immediate sales and customer acquisition
• Retention: Re-engage existing customers with new products

2. Leverage Cross-Channel Synergies

Amazon DSP works most effectively when integrated with your broader Amazon advertising strategy. Use DSP to warm up audiences that you can then retarget with more cost-effective Sponsored Product campaigns.

3. Embrace Full-Funnel Marketing

Take advantage of Amazon’s unique position in the customer journey. Use DSP to reach customers during their research phase, then capture them with targeted Amazon ads when they’re ready to purchase.

The Future is Now: Why Amazon DSP Matters in 2025

The digital advertising landscape is evolving rapidly, with streaming TV becoming mainstream and privacy regulations reshaping how we reach customers. Amazon DSP provides a future-proof solution that addresses these changes head-on.

Key Advantages for 2025 and Beyond:

• Privacy Compliance: Built-in compliance with evolving privacy regulations
• Cross-Device Targeting: Reach customers seamlessly across all devices and platforms
• Premium Inventory Access: Exclusive access to high-quality, brand-safe environments
• Unmatched Data Insights: Leverage Amazon’s unique combination of shopping and streaming data
• Cost Efficiency: Competitive fees and lower CPMs maximize your advertising investment

As third-party cookies disappear and traditional targeting methods become less effective, Amazon’s first-party data advantage becomes even more valuable. The platform’s integration with Google Privacy Sandbox ensures continued effectiveness while maintaining user privacy.

Ready to Transform Your Advertising Strategy?

Amazon DSP represents more than just another advertising platform – it’s your gateway to the future of digital marketing. With its revolutionary 2025 updates, competitive pricing, and privacy-first approach, there’s never been a better time to explore what DSP can do for your brand.

At Canopy Management, we’re not just keeping pace with Amazon’s rapid DSP evolution. We’re leveraging these cutting-edge features to deliver exceptional results for our partners.

From our proprietary C.A.T. (Canopy Advertising Technology) that integrates seamlessly with Amazon’s new AI-powered tools, to our white-glove DSP management that takes advantage of the latest frequency controls and consolidated inventory access, we ensure you’re always ahead of the curve.

As America’s fastest-growing Amazon agency, we’ve helped partners achieve an average of 84% year-over-year profit growth while managing over $3.21B in revenue.

Our team of DSP experts combines Amazon’s automated intelligence with hands-on strategic guidance, giving you the best of both worlds: cutting-edge technology and human expertise.

Canopy Management is a full-service marketing agency for Amazon, Walmart, and TikTok sellers. Our team consists of multi-million dollar, omni-channel entrepreneurs, industry leaders, and award-winning experts.

Contact Canopy Management today to discover how Amazon DSP can unlock new growth opportunities for your brand.