Amazon DSP explained: this tool is Amazon’s definitive programmatic advertising solution, enabling advertisers to reach audiences both on and off Amazon through display, video, and audio ads.
Retargeting is powerful because you’re not starting from zero. You’re speaking to shoppers who already showed interest in your product or category. Therefore, these ads are much more efficient than traditional PPC campaigns.
Through these, you have the opportunity to recover lost sales and even create new chances to convert.
But Amazon DSP has a more pronounced learning curve than PPC. That’s why this article the basics of retargeting ads: how they work, the benefits they can bring to your business, and how to set them up through Seller Central.
Features of Amazon DSP for Retargeting
The strength of Amazon DSP lies in its ability to segment audiences based on specific behaviors and interests.
For example, you can set things up so your campaign targets only customers who have viewed your exact product but didn’t purchase. This is only possible because of Amazon’s tools and incredible amounts of data, available to sellers through DSP.
And so, the platform offers a set of features designed to make retargeting effective and measurable.
One of the most useful features is dynamic creatives, the feature mentioned before.
These ads automatically pull your listing details from Amazon so that shoppers see the exact item they previously interacted with in other platforms like Instagram or Facebook. Amazon explains these ads make the experience more “personal and directly connected” to the user’s browsing history.
Amazon shows you the different ad formats that will appear all through the platform.
You’ve probably seen these. They are visible on the Home Page and above search results.
Some ads can also appear even within a product listing. Through the DSP platform, you can set which audience will see them with a surprising level of detail. We’ll see more on that later.
Your ad could appear while a shopper is not only browsing the Amazon homepage but also watching a show on Fire TV, or reading an article on a third-party site.
Another important feature is frequency capping, which allows you to control how often the same shopper sees your ad. This avoids oversaturation and keeps campaigns cost-efficient. You can easily adjust this through the platform.
The ideal frequency cap usually falls between 5 and 10 impressions. The exact number should be determined through testing, since it depends on both your audience and product category. Once your campaigns are running, monitor performance to identify which frequency delivers the best conversion rates.
Finally, DSP includes robust reporting and attribution. You can measure impressions, clicks, conversions, and sales directly tied to your ads. Since this is linked to Amazon’s retail data, the reporting shows actual purchase outcomes.
A Reminder
Amazon sets a high minimum of USD 35,000 to access its Demand-Side platform. So it’s usually ideal for big brands.
However, smaller brands and sellers can take advantage of the platform through specialized Amazon advertising agencies, which usually have direct access to DSP.
Please note that this platform charges sellers using a cost-per-thousand-impressions (CPM) model, which differs significantly from the cost-per-click (CPC) model.
In Amazon DSP, you pay for ad views rather than clicks. You may also incur costs for various services and features, such as Amazon Ads audiences, managed services, and optional third-party services.
Audiences You Can Reach through Retargeting
These are the main groups you can retarget:
Shoppers who looked at your listing but didn’t buy. They showed interest but may have needed more time to decide.
Customers who added your item to their cart but left without checking out. These are some of the highest-value prospects to recover.
There are also those customers who have already purchased from you. This is, of course, a niche with a very high conversion rate, and a must for any sellers who want to run retargeting campaigns.
But it doesn’t end there. You can also reach new shoppers who haven’t interacted with your products yet. How? Amazon identifies customers whose shopping patterns look like those of its existing buyers. Usually, these are customers interested in products of your competitors:
In DSP, you can go beyond simple remarketing and filter audiences by demographic traits, household data, or even device type. The screenshot below shows the audience selection panel, where advertisers can mix and match these conditions.
As shown here, DSP offers a wide selection of audience types, from retail-based groups such as product viewers to media-driven groups like Twitch or IMDb audiences. This flexibility allows advertisers to combine commerce behavior with entertainment preferences.
How to Use Amazon DSP for Retargeting Ads
Running a retargeting campaign in Amazon DSP involves several key steps:
Step 1: Identify your goal
Do you want to recover cart abandoners, re-engage past viewers, or promote repeat purchases from existing customers? Clear goals shape the type of audience you select and the creatives you use.
Step 2: Build your audience
Through Amazon DSP, you can build audiences based on specific brands or product categories. The platform lets you choose up to ten categories to define who should see your ads:
It’s time to tell the platform exactly which shoppers you want your ads to reach. This is where you select conditions like “viewed but not purchased” or “added to cart but not purchased.”
You can also create audiences tied directly to specific ASINs:
When you select a few specific ASINs, you can set your ads so they appear only when a customer has interacted with those exact items.
You also have the option to refine your targeting further by setting behaviors such as brand views, purchases, or even similar brand views:
In this page you also decide the lookback window, typically 7, 14, or 30 days.
Below this section, you’ll see how audience rules can also be tied directly to product interactions such as product purchases, views, searches, or Subscribe & Save subscriptions:
Step 3: Create your Ads
You can choose dynamic creatives for automatic personalization or upload branded static creatives.
Good ad design includes clear product images, concise messaging, and a call to action that encourages shoppers to return to Amazon and complete their purchase.
Here’s an example of how DSP generates previews across different placements. The same creative is automatically adapted for desktop, mobile, and in-listing formats, ensuring consistent branding everywhere shoppers see your ad.
Step 4: Set your controls
Adjust budget pacing to spread spend evenly or concentrate it over a shorter campaign period. Set frequency caps to prevent overexposure.
Step 5: Monitor and optimize
Your campaign is now live, and it’s time to use reporting dashboards. With these, you can evaluate which audience segments are converting best, which creatives are performing, and if frequency caps are helping performance.
Based on this data, you can refine your targeting, creatives, or budget to improve ROAS.
Conclusion
Retargeting through Amazon DSP allows sellers to reconnect with shoppers who already showed intent. If you utilize all available tools, DSP becomes a powerful complement to your Amazon advertising strategy.
Don’t hesitate to run campaigns and learn more and more on how the system works! When new conversions arrive, you’ll see it’s definitely worth it.
Frequently Asked Questions (FAQs)
Is Amazon DSP the same as Sponsored Display ads?
No. Sponsored Display ads are created directly in Seller Central and are easier to launch, but they have limited targeting and reporting options. Amazon DSP is a separate platform that uses programmatic technology and Amazon’s full data set.
What is the minimum budget for Amazon DSP?
If you work directly with Amazon, the minimum spend is usually around USD 35,000. However, many agencies with DSP access offer smaller entry points by managing campaigns for multiple clients at once.
Do I need an agency to use Amazon DSP?
Not necessarily, but unless you have the required minimum budget, partnering with an agency is often the most practical way to get started.
How does Amazon DSP charge for ads?
DSP campaigns are billed on a cost-per-thousand-impressions (CPM) model. That means you pay for every thousand ad views, not for clicks.
Which audiences are best for retargeting?
Cart abandoners often deliver the strongest return because they were very close to purchasing. Product viewers are also valuable, especially when combined with frequency caps and dynamic creatives. Past buyers are great for upselling purchases too.
Ready to Recover Lost Sales with Amazon DSP?
Every day, shoppers view your products, add them to their carts, and then walk away without buying. Amazon DSP gives you the tools to bring them back, but setting it up the right way is where most brands struggle.
That’s where we come in. By filling out the form below, you’ll take the first step toward:
Reconnecting with shoppers who already showed interest in your brand. Turning abandoned carts into conversions. Using Amazon’s data to build smarter campaigns that scale.
You don’t need to figure out DSP alone. Tell us about your business, and one of our Amazon specialists will reach out with personalized insights. No pressure, just clear advice on how to make DSP work for your goals.
Fill out the form below today, and let’s start turning intent into sales.