Amazon DSP Advertising Explained – 2025 Guide for Sellers

Table of Contents 

1. What is Amazon DSP Advertising? 
2. How Does Amazon DSP Work? 
3. Amazon DSP vs Sponsored Ads 
4. Pros and Cons of Amazon DSP 
5. Who Should Use Amazon DSP? 
6. Cost & ROI Expectations in 2025 
7. Optimizing Your Amazon DSP Campaigns 
8. How SentryKit Complements DSP Campaigns 
9. Conclusion

What is Amazon DSP Advertising? 
Amazon DSP (Demand-Side Platform) is Amazon’s programmatic ad-buying platform that allows advertisers to buy display, video, and audio ads both on and off Amazon. Unlike Sponsored Products or Sponsored Brands, DSP focuses on audience targeting and retargeting, rather than keyword-based ad placement. 

Through DSP, sellers can: 

• Show ads to people outside Amazon (on apps, websites, and streaming platforms) 
• Retarget shoppers who viewed a product but didn’t purchase 
• Reach new audiences using Amazon’s deep behavioral data 

How Does Amazon DSP Work? 
Amazon DSP uses programmatic technology to serve ads based on real-time data and audience behaviors. Here’s a quick breakdown: 

• Audience-Based Targeting: Target users based on past behavior, interests, demographics, and more. 
• Retargeting: Re-engage people who visited your product page, brand store, or similar listings. 
• Inventory Access: Serve ads on Amazon.com, IMDB, Fire TV, Twitch, and third-party websites. 
• Custom Creatives: Use rich media formats like video and carousel to improve engagement. 

Pros and Cons of Amazon DSP 
✅ Pros: 

• Extensive Reach: Access to Amazon-owned sites and partner networks. 
• Advanced Targeting: Behavioral, demographic, contextual, and geographic filters. 
• Retargeting Power: Bring back cart abandoners or window shoppers. 
• Brand Lift: Especially strong for premium products or new launches. 

❌ Cons: 

• High Entry Cost: Typically requires a minimum $10,000/month ad spend (or more via managed service). 
• Complexity: Requires strategic planning, creatives, and testing. 
• Limited to Larger Brands: Less ideal for new sellers or niche products. 

Who Should Use Amazon DSP? 
Amazon DSP works best for: 

• Established sellers with larger budgets 
• Brands running off-Amazon campaigns 
• Sellers launching new premium products 
• Those focused on brand awareness or retargeting 

It’s less suitable for sellers who are early-stage, working with limited budgets, or focused purely on immediate ROAS (Return on Ad Spend). 

Cost & ROI Expectations in 2025 
In 2025, Amazon continues to refine DSP offerings, but cost remains a key consideration. 

• Self-serve DSP (via Amazon Ads) starts around $10,000/month 
• Managed DSP (through agencies) can scale even higher 
• CPMs (cost per thousand impressions) vary by audience type, with retargeting often delivering higher ROI 

Expect ROAS to grow over time, especially when DSP is combined with Sponsored Ads and a solid organic strategy. 

Optimizing Your Amazon DSP Campaigns 
Here are a few ways to ensure DSP campaigns perform well: 

• Use Dynamic Creative Testing: Rotate headlines, images, and CTAs. 
• Segment Audiences: Split campaigns by cold vs. warm traffic. 
• Set Realistic Goals: Don’t expect conversions from awareness campaigns on Day 1. 
• Analyze Performance Weekly: Track impressions, click-through rate, and view-through conversions. 
• Align with Organic & PPC Strategy: DSP works best when part of a multi-channel funnel. 

How SentryKit Complements DSP Campaigns 
While Amazon DSP handles top-of-funnel visibility, SentryKit helps protect and optimize the listing experience after the click: 

• ✅ Listing Change Alerts: Ensure your ad clicks go to accurate, up-to-date listings 
• ✅ Buy Box Monitoring: Don’t run ads when you're not winning the Buy Box 
• ✅ Review Alerts: Negative reviews can tank campaign ROI — stay ahead 
• ✅ Keyword Tracking: Gauge organic lift from increased ad visibility 

Together, DSP + SentryKit = full-funnel performance and protection. 

Conclusion 
Amazon DSP advertising in 2025 offers sellers a powerful way to reach new customers, build brand awareness, and retarget high-intent users. While it comes with a learning curve and budget requirements, the potential return makes it worth considering — especially for scaling brands. 
By pairing DSP efforts with monitoring tools like SentryKit, you not only drive more traffic but ensure those clicks convert.