Amazon DSP in Australia – How to Retarget and Increase Sales

What is Amazon DSP?

Amazon DSP (Demand-Side Platform) is an advanced advertising tool that allows brands to buy display, video, and audio ads on and off Amazon. Unlike traditional Amazon Sponsored Ads, which are limited to search results and product pages, Amazon DSP extends your reach across the entire web.

With DSP, you can place your ads on:

• Amazon’s websites (like Amazon.com.au and IMDb)
• Third-party websites that partner with Amazon
• Mobile apps that Amazon has ad partnerships with
• Amazon’s streaming services like Fire TV and Twitch

Amazon DSP is different from Sponsored Ads because it uses programmatic advertising—an automated system that helps brands buy ad placements based on real-time data. This means your ads are shown to the right people, at the right time, in the right places.

How does retargeting work with Amazon DSP?

Retargeting is one of the most powerful features of Amazon DSP, allowing you to bring back potential buyers who interacted with your products but didn’t make a purchase. Most shoppers don’t buy the first time they see a product—some get distracted, compare options, or delay buying decisions. Retargeting helps you stay in front of them and increase the likelihood of conversion.

Unlike traditional ads, which target broad audiences, retargeting focuses on high-intent shoppers—people who already showed interest in your product. With Amazon DSP, you can follow these shoppers across Amazon, third-party websites, and even mobile apps, displaying personalized ads that remind them of what they left behind.

1. Product View Retargeting

• Who it targets: Shoppers who viewed your product but didn’t purchase.
• Why it works: They showed interest but needed a reminder or an incentive to complete the purchase.

These customers are already aware of your product but may have hesitated due to price, comparison shopping, or distractions. Retargeting them with compelling ads (such as limited-time discounts, strong value propositions, or urgency messaging) can help convert them.

Example: A shopper browses a stainless steel water bottle on your Amazon store but doesn’t buy it. A few hours later, they see an ad for the same water bottle while reading an article online. This ad encourages them to return and complete the purchase.

Pro tip: Test different ad creatives—use a mix of Amazon infographic images, lifestyle shots, and dynamic pricing offers (like limited-time discounts).

2. Cart Abandonment Retargeting

Who it targets: Shoppers who added your product to their cart but didn’t check out.

Why it works: They were extremely close to buying—a small nudge can push them to complete the purchase.

Cart abandoners are the highest-intent audience, meaning they were ready to purchase but left at the last moment. They might have hesitated due to:

• High shipping costs
• Unexpected fees
• Second-guessing their purchase
• Simply getting distracted

Retargeting these customers with reminder ads can help bring them back. Adding incentives like free shipping, a discount, or a limited-time offer increases the likelihood of conversion.

Example: A customer adds a moissanite ring to their cart but doesn’t check out. The next day, they see an ad on their favorite news website offering 10% off if they complete their purchase today.

Pro tip: Use urgency messaging in retargeting ads, like:

“Your cart is waiting!”

“Limited stock—order now!”

“Get 10% off if you complete your order today!”

3. Competitor Audience Retargeting

Who it targets: Shoppers who viewed or purchased similar products from your competitors.

Why it works: If they’re interested in a product like yours, a better offer can win them over.

This strategy lets you capture customers from your competition. By targeting shoppers who have browsed or bought competitor products, you can show them why your product is a better choice—whether it’s better quality, a lower price, or added benefits.

Example: A shopper looks at your competitor’s protein powder but doesn’t buy. Later, they see your ad with “More protein, fewer additives—Try our premium formula!” messaging, along with a better price or bonus offer.

Pro tip: Use comparison-style ads highlighting your product’s advantages over competitors. Examples:

“Better ingredients, better results—Try [Your Brand] today!”

“More power, less price—Upgrade your [Product] today!”

4. Category-Based Retargeting

Who it targets: Shoppers who browse product categories related to your item.

Why it works: These customers are in the research phase and might not know about your brand yet.

This approach helps introduce your product to shoppers already interested in similar items. Even if they haven’t viewed your specific product, Amazon DSP allows you to retarget category shoppers who have demonstrated intent by browsing related products.

Example: A shopper is browsing kitchen appliances but hasn’t viewed your stainless steel blender yet. Your ad appears on their next visit to a website, showing “Upgrade Your Kitchen—Try Our Best-Selling Blender Today!”

Pro tip: Category-based retargeting is great for brand awareness. Use engaging, informative ads to showcase why your product stands out.

Benefits of using Amazon DSP for Australian sellers

• Reach buyers beyond Amazon – DSP ads appear on Amazon-owned sites, third-party websites, apps, and streaming services, allowing sellers to target customers even when they’re not actively searching on Amazon.

• Retarget high-intent shoppers – Many shoppers browse or add items to their cart but don’t buy immediately. DSP helps bring them back by showing personalized ads across different websites and apps.

• Lower customer acquisition costs – Retargeting is more cost-effective than acquiring new customers because it focuses on people who have already shown interest in your product.

• Increase brand awareness – Even if shoppers don’t buy right away, repeated exposure to your brand through DSP ads helps build recognition and trust, leading to future sales.
• Leverage Amazon’s audience data – DSP uses Amazon’s powerful shopper insights to target the right customers based on their browsing and purchasing behavior, leading to higher conversion rates.

• Gain an early advantage in Australia – Amazon Australia is still growing, and many sellers haven’t fully adopted DSP yet. Using it now gives you a competitive edge and better ad placements at lower costs.

When to use Amazon DSP

• You want to retarget lost shoppers – DSP helps you reconnect with people who viewed your product, abandoned their cart, or browsed similar products from competitors.

• You need to reach buyers beyond Amazon – If your audience isn’t actively searching on Amazon, DSP can target them across external websites, apps, and streaming platforms.

• You want to increase brand awareness – DSP is ideal for brands looking to build long-term recognition by consistently showing ads to relevant audiences.

• You have a larger advertising budget – DSP requires a higher minimum spend than sponsored ads, making it more suitable for established brands ready to scale.

• You want advanced audience targeting – DSP allows you to segment your audience based on Amazon’s deep shopper insights, ensuring ads are shown to high-potential buyers.

When to use Sponsored Ads

• You want to retarget lost shoppers – DSP helps you reconnect with people who viewed your product, abandoned their cart, or browsed similar products from competitors.
• You need to reach buyers beyond Amazon – If your audience isn’t actively searching on Amazon, DSP can target them across external websites, apps, and streaming platforms.
• You want to increase brand awareness – DSP is ideal for brands looking to build long-term recognition by consistently showing ads to relevant audiences.
• You have a larger advertising budget – DSP requires a higher minimum spend than sponsored ads, making it more suitable for established brands ready to scale.
• You want advanced audience targeting – DSP allows you to segment your audience based on Amazon’s deep shopper insights, ensuring ads are shown to high-potential buyers.

Common mistakes to avoid in Amazon DSP campaigns

• Ignoring audience segmentation – Not all shoppers should see the same ad. Amazon DSP allows you to create highly targeted campaigns, but if you don’t segment your audience properly, you’ll end up wasting ad spend on people who are unlikely to convert. Focus on cart abandoners, product viewers, and competitor audiences separately for better results.
• Not testing different ad creatives – Running the same ad repeatedly can lead to ad fatigue. Test different images, videos, and copy variations to see what resonates best with your audience. A/B testing helps you improve click-through rates and conversion rates over time.
• Using a poor bidding strategy – Overbidding leads to excessive spending while underbidding can limit your ad reach. Monitor your campaign performance and adjust bids based on the cost-effectiveness of each placement.
• Setting and forgetting campaigns – Many sellers launch Amazon DSP campaigns and assume they will run smoothly without adjustments. Regular monitoring is crucial to optimize audience targeting, bidding strategies, and ad placements.
• Not leveraging first-party data – Amazon has powerful shopper insights that help brands target high-intent customers. If you’re not analyzing and using this data, you’re missing out on better audience targeting opportunities.
• Overlooking frequency capping – Showing the same ad too often can annoy shoppers and lead to negative brand perception. Use frequency capping to control how many times a customer sees your ad within a given time frame.
• Skipping post-campaign analysis – If you don’t analyze your campaign performance, you won’t know what’s working and what needs improvement. Use Amazon DSP reports to track impressions, conversions, and return on ad spend (ROAS).
• Not working with experts when needed – Managing DSP effectively requires experience with audience segmentation, bidding, and campaign analysis. Working with Amazon vendor experts or an Amazon DSP agency can help you fine-tune your campaigns and maximize ROI.

Should you hire an Amazon marketing consultant for services?

Hiring an Amazon marketing consultant isn’t just about offloading work—it’s about making your ad spend count. Amazon DSP isn’t a simple plug-and-play system; it requires precise targeting, strategic bidding, and constant optimization to turn clicks into conversions.

If your ads are getting impressions but not sales, if your budget disappears without results, or if you simply don’t have the time to deep-dive into Amazon’s ever-evolving ad system, then a consultant can be a game-changer. They know the tricks to retarget lost shoppers, fine-tune audience segmentation, and squeeze the most out of your budget.