Amazon’s ad world changes fast. One buzzword you’ve probably heard is Amazon DSP. If you’re a seller looking to scale, understanding DSP—and how an Amazon DSP agency works can be a real game-changer.

This guide breaks down DSP in plain English, shows you why it’s different from Sponsored Ads, and explains how the right agency (like Signalytics) can help you unlock full-funnel growth. Let’s dive in.

Many brands on Amazon struggle to scale their advertising while keeping costs under control. An Amazon DSP agency helps solve this problem by managing programmatic ads that reach the right audience both on and off Amazon. An Amazon DSP agency is a specialized partner that uses Amazon’s demand-side platform to plan, run, and optimize campaigns designed to increase sales and brand visibility.

Working with an agency gives businesses access to advanced targeting tools, data-driven insights, and expert campaign management. Instead of spending time learning the platform, sellers can rely on professionals who understand how to reach shoppers across Amazon, third-party sites, and streaming services. This makes it easier to focus on growth without losing control of ad spend.

As competition on Amazon grows, many companies turn to DSP agencies to gain an advantage. From building full-funnel strategies to unlocking new opportunities through video and display ads, these agencies provide the structure and expertise needed to maximize results

What Is Amazon DSP?

Amazon DSP stands for Demand-Side Platform. In simple terms, it’s Amazon’s system for buying display, video, and audio ads both on and off Amazon.

With DSP, your ads don’t just appear in Amazon search results. They can show up:

• On Amazon-owned sites like IMDb, Twitch, and Prime Video

• On Amazon Music and Alexa devices (audio ads)

• Across thousands of third-party websites and apps

This means you can reach shoppers wherever they are online not just when they’re searching.

👉 Example: If someone was browsing running shoes on Amazon last week, DSP can retarget them with your sportswear ad while they’re scrolling the news or streaming on Twitch.

Unlike Sponsored Ads (which are keyword-based and pay-per-click), DSP is impression-based. You pay for views and use Amazon’s powerful first-party shopper data to target audiences by behavior, demographics, and interests.

Learn about Amazon DSP agency solutions to increase ROI

Definition and Core Services

An Amazon DSP agency is a specialized advertising partner that manages campaigns through Amazon’s demand-side platform. Unlike basic self-service tools, DSP allows advertisers to buy display, video, and audio ads both on and off Amazon. Agencies use Amazon’s first-party shopper data to reach audiences with high intent.

Core services often include:

• Audience segmentation based on shopping behavior, demographics, and interests
• Creative testing to refine ad formats and messaging
• Bid management to control costs and improve efficiency
• Performance tracking through custom reporting dashboards

Many agencies also provide retargeting campaigns to re-engage shoppers who viewed products but did not purchase. This combination of targeting and optimization helps brands scale while keeping campaigns profitable.

How DSP Differs from Sponsored Ads

The big difference? Intent vs. Awareness.

• Sponsored Ads = keyword-driven. Great for capturing shoppers who are actively searching.

• Amazon DSP = audience-driven. Great for retargeting, awareness, and prospecting even before they search.

DSP lets you show:

• Display ads – banners with product images and CTAs

• Video ads – short clips on Prime Video, Twitch, or IMDb

• Audio ads – played on Amazon Music and Alexa

• Dynamic e-commerce ads – auto-updated with real-time product info (stock, price, etc.)

DSP = full funnel. You can introduce your brand, remind window shoppers, and build loyalty all in one platform.

How an Amazon DSP Agency Works

DSP sounds powerful, right? But it’s also complex. That’s where an Amazon DSP agency comes in.

Here’s what they do:

1. Access Without High Minimums
   Amazon’s own DSP often requires $35k–$50k monthly minimums. Agencies with a DSP “seat” lower the entry point, letting brands start around $5k–$10k.

2. Campaign Management
   Agencies set up targeting, manage frequency caps, and create ads. They continuously optimize campaigns based on data, which is tricky to do solo.

3. Advanced Tools
   Top agencies use Amazon Marketing Cloud (AMC) for deep insights like new-to-brand sales and full-funnel attribution. Some even build custom dashboards for transparent reporting.

4. Creative Support
   An agency doesn’t just run numbers. They design banner ads, edit videos, and align DSP with your PPC strategy so both channels work together.

5. No Learning Curve
   Running DSP yourself requires buying a seat and learning a steep platform. Agencies remove that headache.

👉 Example: A brand struggling with 40+ campaigns was burning ad spend with no structure. After moving to an agency, their ACoS dropped while ROAS increased because the agency balanced DSP retargeting with Sponsored Ads.

What to Know Before Hiring a DSP Agency

Before diving in, make sure you’re ready:

• Retail-Ready Listings: Optimized product detail pages with solid reviews. DSP drives traffic, but your listing must convert it.

• Budget: Be prepared to allocate $5k+ monthly without cutting your PPC. DSP should complement, not replace, Sponsored Ads.

• Clear Goals: Do you want awareness? Retargeting? Inventory clearance? Communicate this so your agency builds the right strategy.

• Agency Fit: Check for case studies, transparency, and Amazon expertise. Look for agencies that know how to align DSP with SEO, PPC, and listing optimization.

Key Benefits of Partnering With an Amazon DSP Agency

An Amazon DSP agency helps advertisers reach the right audience, improve campaign efficiency, and track measurable outcomes. By combining Amazon’s data with expert management, brands can expand visibility, strengthen customer relationships, and make better use of their ad spend.

Advanced Targeting Capabilities

Amazon DSP agencies provide access to audience data built from Amazon’s shopping, browsing, and streaming behavior. This allows advertisers to target based on purchase history, product interests, and demographic details.

Agencies also use lookalike modeling to find new customers who share traits with existing buyers. This helps brands grow their audience without wasting impressions on irrelevant users.

In addition, agencies can manage retargeting campaigns. For example, they can serve ads to shoppers who viewed a product but did not purchase. This keeps the product visible and increases the chance of conversion.

By leveraging these advanced targeting tools, agencies reduce wasted ad spend and ensure that campaigns reach the most relevant audience segments.

Brand Awareness and Full-Funnel Strategies

An Amazon DSP agency helps brands build awareness while guiding customers through the entire buying process. Campaigns can target users at different stages, from discovery to purchase.

For awareness, agencies often use display ads, streaming TV, and audio placements on Amazon-owned and third-party sites. These placements expose products to large audiences in trusted environments.

As shoppers move closer to buying, agencies shift focus to retargeting and product-specific ads. This layered approach creates a full-funnel strategy that balances reach with conversion.

Agencies also keep messaging consistent across channels. Whether through video, display, or mobile, the brand’s identity stays clear and recognizable, which helps build trust over time.

ROAS and Performance Metrics

Return on ad spend (ROAS) is a key measure of success in DSP campaigns. Agencies track ROAS alongside other metrics such as click-through rates, impressions, and conversion rates.

They use Amazon Marketing Cloud insights and reporting dashboards to analyze performance. This allows them to see which audiences, ad creatives, and placements deliver the strongest results.

Agencies also run A/B tests to refine campaigns. By testing different ad formats, they identify what drives the highest return.

With this data-driven approach, advertisers can adjust budgets, focus on high-performing segments, and steadily improve ROAS while keeping costs under control.

Amazon DSP Advertising Solutions

Amazon DSP gives brands access to advanced audience data, flexible ad formats, and premium placements across Amazon and third-party platforms. It helps advertisers reach shoppers at different stages of the buying journey while maintaining precise control over targeting and spend.

Audience Targeting Strategies

Amazon DSP uses Amazon’s first-party data, which is based on billions of shopping signals. This allows advertisers to build audiences around shopping behavior, demographics, lifestyle interests, and past purchase history.

Marketers can create custom audience segments to retarget shoppers who viewed a product but did not purchase, or to reach new audiences with similar interests. For example, a brand selling fitness gear can target people who recently browsed running shoes or purchased workout supplements.

Advertisers also benefit from Amazon Marketing Cloud (AMC), which provides deeper insights into multi-touch attribution. This data helps refine campaigns by showing which ads influence conversions and which audiences respond best.

Key targeting options include:

• In-market audiences – shoppers actively considering related products
• Lifestyle audiences – groups defined by long-term interests
• Remarketing segments – past visitors or purchasers
• Lookalike modeling – customers with behaviors similar to existing buyers

Types of Ad Placements

Amazon DSP supports multiple ad formats across devices and platforms. Advertisers can choose placements based on campaign goals such as awareness, consideration, or conversion.

Common placements include:

• Display ads – appear on Amazon and third-party sites to drive visibility
• Video ads – run on Amazon, Fire TV, and partner apps to increase engagement
• Audio ads – stream on Amazon Music’s ad-supported tier for brand recall

Each format integrates with programmatic bidding, allowing advertisers to set budgets, adjust bids, and optimize delivery in real time.

A practical example: a skincare brand might use display ads to retarget past visitors, while running video ads on Fire TV to build brand awareness among new audiences. This mix ensures coverage across different stages of the shopper journey.

Utilizing Amazon-Owned Properties

Amazon-owned properties give advertisers exclusive opportunities to reach high-intent shoppers. Ads can appear on Amazon.com, Amazon Fresh, Kindle, IMDb, Fire TV, and Amazon Music, among others.

These placements are valuable because they connect directly with users already engaged in Amazon’s ecosystem. For instance, a household brand can advertise on Amazon Fresh to reach grocery buyers, or run video ads on IMDb to capture entertainment-focused audiences.

Using cross-property campaigns, advertisers can maintain consistent messaging across multiple touchpoints. A campaign might combine Sponsored Display ads on Amazon.com with DSP video ads on Fire TV, creating a seamless brand presence.

Since these properties are tied to Amazon’s shopping data, advertisers gain stronger targeting precision compared to general web placements. This makes Amazon-owned inventory a core part of most DSP strategies.

Optimization Techniques for Amazon DSP Campaigns

Effective optimization in Amazon DSP involves refining ad creatives, managing budgets with precision, and making ongoing adjustments based on performance data. Brands that take a structured approach to testing, bidding, and monitoring see stronger returns and reduced wasted spend.

Creative Testing and Refinement

Strong creative performance drives engagement and conversions in Amazon DSP. Advertisers should test multiple versions of display and video ads to learn which formats, visuals, and calls-to-action perform best. Running 3–5 creative variations per campaign helps Amazon’s system identify top performers.

Clear branding is essential. Logos should appear prominently, and product images typically outperform abstract graphics. Video ads should capture attention within the first few seconds, especially since many play without sound. Using captions and text overlays ensures the message remains clear.

To avoid ad fatigue, creative rotation is important. High-performing ads often lose effectiveness after 1–2 weeks of repeated exposure. Scheduling refreshes and introducing new variations keeps engagement strong. Tracking metrics like click-through rate, conversion rate, and viewability helps guide which creatives to scale and which to pause.

Budget Allocation and Bid Strategies

Budget management in Amazon DSP requires balancing awareness, consideration, and conversion campaigns. A common split might dedicate 40% to awareness, 35% to retargeting, and 25% to direct conversion goals, though this varies by business objectives.

Advertisers should also account for seasonality and time-of-day performance. For example, allocating more spend during peak shopping periods or high-converting hours can make campaigns more efficient. Amazon-owned inventory often delivers stronger conversion rates but comes at a higher cost, so mixing premium and third-party placements can balance reach and efficiency.

Bid strategies should move beyond static bids. Dynamic bidding adjusts in real time to audience quality, device type, or placement. Value-based bidding, which factors in customer lifetime value and profit margins, often delivers better long-term results than optimizing only for clicks or impressions.

Continuous Campaign Optimization

Amazon DSP campaigns require frequent monitoring to stay efficient. During the first two weeks of a new campaign, daily checks help prevent wasted spend while Amazon’s system gathers enough data to optimize.

Automated rules can streamline adjustments. For example, advertisers might automatically increase budget on ad groups that meet a target cost-per-acquisition while decreasing spend on underperforming segments.

Key performance indicators should be tracked across the funnel. Upper-funnel campaigns benefit from metrics like reach and video completion rates, while lower-funnel efforts should focus on conversions and return on ad spend. Cross-device tracking is also critical, since many users research on one device and purchase on another.

Regular analysis ensures campaigns adapt to audience behavior shifts, seasonal trends, and competitive changes. This ongoing process helps advertisers maximize efficiency and sustain growth.

Leveraging Streaming TV and Emerging Channels

Streaming TV gives advertisers access to audiences who watch content on connected devices rather than traditional cable. Agencies using Amazon DSP can place ads within premium content such as Prime Video, live sports, and third-party apps, while also combining these campaigns with other digital formats for broader reach.

Streaming TV Advertising Opportunities

Streaming TV (STV) lets advertisers reach viewers across connected TVs, Fire TV, and partner apps. With Amazon DSP, agencies can buy this inventory programmatically, ensuring ads appear in brand-safe environments.

One key benefit is the ability to target based on Amazon’s shopping and browsing data. This makes campaigns more precise compared to traditional TV, where targeting relies mostly on demographics.

Agencies can also deliver ads in multiple formats, such as :30 video spots or interactive units that encourage viewers to explore products. Streaming TV placements often run alongside popular content, including Prime Video originals and live sports, which increases visibility.

Advantages of STV with Amazon DSP:

• Access to Amazon’s first-party audience data
• Premium inventory across apps and devices
• Flexible creative options (standard video, interactive ads)
• Scalable reach without relying on linear TV

This mix of precision and scale makes STV a practical choice for both brand awareness and measurable performance campaigns.

Integrating CTV and STV Into Campaigns

Agencies often combine Connected TV (CTV) and Streaming TV (STV) to create consistent messaging across devices. CTV refers to the hardware, such as Fire TV or smart TVs, while STV focuses on the ad inventory within the content.

By integrating both, advertisers can reach viewers whether they stream on a television, tablet, or mobile app. Amazon DSP enables cross-device targeting so campaigns follow the same audience across screens.

This integration helps balance top-of-funnel awareness with mid- and lower-funnel actions. For example, an ad shown during a Prime Video stream can later be reinforced with display or mobile video ads.

A simple campaign structure might include:

1. STV ads for broad visibility
2. Display ads for retargeting viewers
3. In-app or mobile video ads to drive conversions

When agencies align CTV and STV placements with other DSP formats, they create a more unified advertising strategy that connects brand storytelling with measurable outcomes.

Selecting the Right Amazon DSP Agency Partner

Choosing the right Amazon DSP agency requires looking closely at proven performance, industry expertise, and how clearly the agency communicates results. Brands benefit most from partners who combine measurable success with transparent reporting practices.

Evaluating Agency Experience and Results

An agency’s track record shows whether it can manage complex DSP campaigns effectively. Companies should review case studies, client testimonials, and performance metrics such as ROAS, conversion rates, and new-to-brand sales. These details reveal if the agency can deliver growth in similar industries or product categories.

Experience across both Sponsored Ads and DSP campaigns is valuable. Agencies that understand the full Amazon advertising ecosystem can create strategies that balance immediate sales with long-term brand building.

It also helps to check if the agency has worked with brands of different sizes. This shows whether they can adapt strategies for startups, mid-sized sellers, or established enterprises.

Finally, agencies with direct knowledge of Amazon’s systems, such as teams with former Amazon employees, often bring deeper insights into how to optimize campaigns. This background can give brands an advantage in navigating competitive categories.

Transparency and Reporting Standards

Clear and consistent reporting helps brands understand where budgets are going and what results they are generating. A reliable agency should provide real-time dashboards or detailed reports that track impressions, clicks, conversions, and spend efficiency.

Agencies that share both successes and challenges allow brands to make informed decisions. This level of openness prevents wasted spend and builds trust in the partnership.

Look for reporting that breaks down audience segments, ad placements, and performance by channel. This detail makes it easier to see which strategies work and where adjustments are needed.

Regular communication is equally important. Weekly or monthly check-ins ensure that campaigns stay aligned with goals and market changes. Without this, brands risk losing visibility into campaign performance.

Real Amazon DSP Success Stories

• BAKBLADE Grooming used DSP retargeting to convert window shoppers. Result? Over $1M in sales in under two years.

• Signalytics Client (Home & Kitchen brand) – DSP campaigns drove €239,302 in sales in record time, proving mid-sized sellers can benefit just as much as enterprise brands.

• Nuanced Media reported a client’s revenue jumped 11x in 3 months after launching DSP.

These examples show one thing: DSP unlocks scale that keyword-only ads can’t.

Why Signalytics Is the Best Amazon DSP Agency

There are many agencies out there Nuanced Media, My Amazon Guy, IG PPC, SalesDuo. But here’s why sellers trust Signalytics as their DSP agency:

• Built by Sellers: Founded by Howard Thai (“The Professor”), an 8-figure Amazon seller. Strategies are battle-tested, not theory.

• AI-Powered Tools: Proprietary AI uncovers profitable audiences and adjusts campaigns in real time.

• Full-Funnel Approach: They optimize everything listings, SEO, PPC, DSP so campaigns don’t operate in silos.

• Proven Wins: Clients report 300%+ conversion lifts, massive revenue boosts, and lower TACoS with DSP integration.

• Transparent & Collaborative: Clear reporting, personal support, and even training options if you want to learn DSP yourself.

👉 One client put it best: “Signalytics doesn’t just run ads they feel like a partner in our business.”

Final Thoughts

Amazon DSP is your way to reach shoppers beyond search. It’s complex, but when managed by the right agency, it becomes one of the most powerful growth tools for Amazon brands.

If you’re ready to scale, partnering with an Amazon DSP agency like Signalytics could be the move that takes your brand from steady growth to explosive scale.

What services do Amazon DSP agencies typically provide?

They usually handle campaign setup, audience targeting, creative design, bid management, and performance optimization. Many also provide reporting and insights to help brands understand customer behavior and ad effectiveness.

How does partnering with an Amazon DSP agency benefit my advertising strategy?

An agency brings expertise in managing complex ad platforms, which helps reduce wasted spend and improve targeting accuracy. They also streamline campaign execution, freeing up internal teams to focus on other business areas.

What metrics should I use to evaluate the performance of an Amazon DSP agency?

Key metrics include return on ad spend (ROAS), cost per impression (CPM), conversion rate, and audience reach. Monitoring frequency caps, click-through rates, and overall sales lift provides additional insight into campaign performance.

Can Amazon DSP agencies help with targeting both on and off Amazon platforms?

Yes, they can target audiences across Amazon-owned sites, apps, and third-party websites. This allows brands to reach shoppers browsing on Amazon as well as those engaging with content elsewhere online.

What is the minimum budget required to work with an Amazon DSP agency?

Amazon DSP often requires a minimum spend of around $12,000–$15,000 per month for self-service. Managed service options may require higher commitments, often starting around $50,000, depending on the market.

How do Amazon DSP agencies ensure compliance with data privacy and advertising regulations?

They follow Amazon’s advertising policies and industry standards for data privacy. Agencies typically use first-party data responsibly, avoid unauthorized data sharing, and align campaigns with regional regulations such as GDPR or CCPA.