Amazon DSP vs. Sponsored Ads: How Agencies Approach Both

TL;DR 

• Sponsored Ads show up on Amazon and help you get quick sales and more product visibility.

• Amazon DSP shows your ads on other websites and apps too great for retargeting and brand awareness.

• Sponsored Display ads are easy to set up and good for smaller sellers with lower budgets.

• DSP ads need a higher budget (usually AUD $5,000+ per month) and work best for growing brands.

• Agencies manage Sponsored Ads by choosing the right keywords, setting bids, and tracking results.

• Agencies manage DSP by targeting the right audiences, designing visuals, and running ads across the web.

• Using both Sponsored Ads and DSP together can help you get more sales now and grow your brand over time.

Running ads on Amazon? Great. But here’s the real question—are you using the right kind of ads for your goals?

Most sellers jump into Sponsored Ads, but few explore the full potential of Amazon DSP and that’s where the real competitive edge begins. Sponsored Ads (like Sponsored Products, Brands, and Display) help you target high-intent shoppers already searching on Amazon. They’re cost-effective, easy to set up, and perfect for driving quick conversions.

Amazon DSP, on the other hand, goes bigger. It lets you target audiences outside Amazon on apps, websites, and even streaming platforms. Want to retarget shoppers who viewed your product but didn’t buy? DSP does that. Want to build long-term brand awareness? DSP does that too.

In this blog, we’ll break down how agencies manage both ad types, the key differences, and how to choose the right mix based on your budget and brand goals. 

What are Amazon Sponsored Ads?

Amazon Sponsored Ads are the most common type of ads used by sellers on Amazon. They help your products appear in front of shoppers who are already searching for similar items. These ads show up on search results pages, product pages, and other places across Amazon.

There are three main types:

• Sponsored Products: Promote a single product. These ads help get more views and sales and are great for boosting your product’s visibility.

• Sponsored Brands: Show your brand logo, a custom headline, and multiple products. These ads appear at the top of search results and help build brand awareness.

• Sponsored Display: Retarget shoppers who viewed your products or similar ones. These ads can appear on Amazon and other websites.

Sponsored Ads are easy to set up, and you only pay when someone clicks. You can control your budget, choose your keywords, and track how your ads are performing using Amazon’s reports. For sellers in Australia and beyond, Sponsored Ads are a smart way to increase sales, promote new products, and compete with bigger brands even with a smaller budget.

What is Amazon DSP?

Amazon DSP (Demand-Side Platform) is an advanced advertising tool that allows brands to reach audiences both on and off Amazon. Unlike Sponsored Ads, which appear only on Amazon's shopping platform, DSP lets you run display and video ads across Amazon-owned sites like IMDb, Twitch, and Fire TV, as well as third-party websites and apps.

With Amazon DSP, you can target audiences based on shopping behavior, interests, and past actions like people who viewed your product but didn’t buy. It’s perfect for retargeting, building brand awareness, and running full-funnel campaigns.

DSP is typically used by larger or more established brands because it requires a bigger budget and a more strategic, long-term approach. It’s managed either by Amazon directly or through certified DSP agencies. For Australian brands looking to grow beyond basic ads, Amazon DSP offers powerful tools to reach new customers, stay top-of-mind, and build a strong brand presence across the web.

What is the differences between DSP and Sponsored Ads

Sponsored Display ads vs Amazon DSP: What is best for you? 

Both  Amazon product display ads and Amazon DSP offer ways to retarget customers and expand your reach but they work differently and suit different goals.

Sponsored Display is easy to access, self-serve, and ideal for small to mid-sized sellers. It allows you to target shoppers who viewed your product, similar products, or relevant categories on and off Amazon. It's budget-friendly and can be set up quickly inside Seller Central.

Amazon DSP, on the other hand, offers more advanced audience targeting and wider reach. It’s great for brands with bigger budgets and long-term goals. DSP lets you run display and video ads across Amazon platforms and third-party websites, using detailed shopper data to target specific audiences.

If you’re just starting out or have a limited budget, Sponsored Display is a great option. If you’re focused on brand building, retargeting at scale, or full-funnel advertising, Amazon DSP is the better choice.

How Amazon agencies manage your Sponsored Ads

• Conduct keyword research to find high-converting terms for Amazon new product launch. 

• Set up and manage Sponsored Products, Brands, and Display campaigns.

• Structure campaigns and ad groups for better control and targeting.

• Manage bids and budgets to optimize ad performance.

• Monitor key metrics like ACoS, CTR, and conversions.

• Regularly test and tweak campaigns for better results.

• Align ad strategy with your business goals (e.g., sales, ranking, visibility).

• Provide clear, consistent performance reports and insights.

• Save you time by handling all the day-to-day ad management.

How Amazon agencies manage your DSP campaigns

• Understand your goals (brand awareness, retargeting, or more sales).

• Choose the right audience using Amazon’s shopper data.

• Set up display and video ads on Amazon and other websites.

• Create eye-catching ad designs and product visuals.

• Track how many people see, click, and buy from your ads.

• Use similar audience targeting to reach new potential customers.

• Keep improving the ads based on what’s working.

• Show ads to people who viewed your product but didn’t buy.

• Share clear reports so you know how the ads are doing.

• Adjust spending to get the best results for your budget.

Cost structure analysis 

How agencies typically manage Sponsored Ads

• Research: Agencies start by researching relevant keywords and targeting options to ensure the ads reach the right audience.

• Campaign setup: They create and organize ad campaigns based on the client's goals, whether it's to drive traffic or increase sales.

• Monitoring: Agencies continuously monitor performance metrics like click-through rates (CTR) and cost-per-click (CPC) to gauge the campaign's success.

• Optimization: Adjustments are made in real time to bids, searching for high volume Amazon product keywords and ad copy to improve results and reduce costs.

• Reporting: Regular reports are provided to clients, analyzing data and suggesting improvements to refine strategies for better performance and ROI.

This step-by-step approach ensures Sponsored Ads campaigns are managed effectively and optimized for maximum results.

How agencies typically manage DSP campaigns

• Audience research: They find the right audience based on data like interests and behaviors.

• Campaign setup: Ads are created with images and messages that appeal to the target audience.

• Bid management: Agencies adjust bids to make sure ads reach the right people at the right cost.

• Monitoring: They keep track of how well the ads are performing.

• Optimization: Changes are made to improve results and get the most value from the campaign.

• Reporting: Agencies send performance reports to clients to help refine the strategy.

This process helps agencies create effective DSP campaigns that reach the right people while staying cost-effective.

Choose the right ad strategy for your brand goals

Wrap up

Both Amazon Sponsored Ads and Amazon DSP offer powerful ways to grow your brand but they serve different purposes. Sponsored Ads are great for quick wins, driving sales, and staying flexible with your budget. Amazon DSP takes things further, helping you reach customers across the web, retarget lost shoppers, and build long-term brand awareness. 

Choosing the right mix depends on your goals, budget, and where you are in your business journey.

Many successful brands use both, combining Sponsored Ads for conversions and DSP for scale. The key is knowing when and how to use each effectively.

Not sure where to start? Our experienced Amazon professional can help. Whether you’re launching your first ad or ready to explore full-funnel strategies with DSP, we’ll build a custom plan that fits your goals, budget, and brand vision.