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What Makes a Brand a Good Fit for Amazon DSP?

Brent Zahradnik

CEO & Founder, AMZ Pathfinder | Expert in Amazon Ad Strategies for Profitable Growth | Host of Beyond PPC Podcast | Co-Mentor, Core Community

发布日期: 2025年1月24日

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When is it right to try DSP?

Amazon DSP is a super-powerful platform with levels of targeting control and audience customization you can only dream of when using Sponsored Ads. We’ve talked a lot recently about the more technical details of using DSP, like adding 1st party data or AMC audience creation, but what about a simple framework to determine if DSP is actually a good fit for your business and brand? After all, you only want to do all the hard work of getting setup and spending on the platform if you have a high likelihood of success.

We’ll tackle that question this and next in week in a two-part series covering 11 different criteria. We are looking at this from the perspective of an endemic advertiser, what Amazon calls businesses selling physical products on their marketplace, as considerations for non-endemics are different.

Here are the first 5 criteria to consider when looking to jump into DSP

1. A Full Understanding of Amazon DSP

When talking to prospects interested in DSP, we spend the vast majority of our time on education. In contrast to Sponsored Ads where everyone has spent hours in the software and attended a thousand webinars about the subject, most people have only a vague idea of what DSP can do and how exactly it works. The fact that DSP access can’t be shared with clients makes this worse - they have no opportunity to get hands-on and learn the platform. Some have had an experience with another agency that's left them ambivalent. More often than not, the objections we hear are due to misconceptions or experiences with agencies that distorted what DSP is for or had terrible reporting and communication.?

Your job as a business owner is to educate yourself as much as possible about DSP. Ask all the questions of your agency. Read blog posts, LinkedIn threads and watch all the videos you can get your hands on.

2. Amazon vs Other Ad Platforms

Spending on DSP means you’re not allocating ad budget somewhere else - Meta, Tiktok or Google. It’s a simple opportunity cost evaluation. Understanding your business growth plan and what % of future sales you expect to earn from Amazon is key to understanding if investing in DSP is the right move. If you’re betting heavy on Amazon, it makes the most sense to allocate budget within their ecosystem.

3. Current Investment in Amazon Ads

Brands spending small amounts of budget on Sponsored Ads should in most cases avoid DSP. The impact of DSP is magnified when they are used together. Think of it like chips and guacamole - both fine by themselves, but outstanding when enjoyed together. If you combined Sponsored Ads and DSP, you're able to formulate a full-funnel advertising strategy to capture shoppers who have never heard of you and shepherd them all the way to check out.

4. Make a Winner an Even Bigger Winner

Don’t try to turn a losing product into a winner with DSP. Take a winning product and boost it with DSP to build on it’s existing success, which will in turn help down catalog products. Focusing DSP spend on just a handful of already successful products is the most effective strategy.

5. Catalog Depth

Is there an ecosystem of products across your brand that you can cross-sell or upsell? Will someone buy an array of things from the brand going forward? If this is the case, investing in DSP and turning someone who has never heard of your brand into a loyalist who will buy again in the future is a far more tempting long term proposition. Products that address a one-time pain point or need that leaves the customer with little need to engage with your brand again are less of a good fit.