Amazon DSP vs Sponsored Display

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The variety of ad types accessible to you is one of the most exciting (and intimidating) aspects of Amazon advertising. Advertisers can regularly take advantage of new ad network options from Amazon, such as Sponsored Display ads and DSP.

Amazon’s Demand-Side Platform (DSP) and Sponsored Display ads are beneficial for expanding the reach and aiming ads both on and off the platform. 

Both of these ad types are compatible with third-party transactions, authored partners, Fire TV, Kindle, Amazon Live, streaming platforms, and other apps in addition to They differ, nevertheless, in terms of qualifications, pricing, and the number of inventive control marketers have.

Is one superior to the other in concepts of Amazon DSP vs. Sponsored Display?

Understanding the primary variations between these ad types and the objectives they can enable you to accomplish will help you understand and balance your Amazon ad strategy in 2022.

DSP and Sponsored Display Eligibility

DSP can be used as by-products which do not sell expressly on Amazon, which is one of the most major differences between DSP and Sponsored Display. 

In contrast, Sponsored Display ads can only be seen on Amazon. Sponsored Display ads on Amazon’s online markets help advertisers increase brand and product awareness. Although advertisements may appear outside the global market, all traffic will be directed to your Amazon entries.

Moreover, DSP advertisers can either direct traffic to an Amazon product detail page or direct traffic to external sites that are not affiliated with Amazon in any way. As a result, DSP is the most effective way for products that don’t sell on Amazon to reach Amazon’s consumers.

Sponsored Display and DSP Cost Structure

The price of each ad type should influence where it belongs in your ad strategy and how you evaluate its effectiveness. The cost structure for DSP ads is based on Cost Per Mille (CPM). This is the average cost of delivering 1,000 ad impressions to your customers. 

Sponsored Display ads are paid for using a Pay Per Click (PPC) model centered on the mean price you pay each moment someone clicks on your ad.

Moreover, CPM or PPC may be advantageous based on the lead generation of your ads. Which cost framework you prefer may be influenced by your goals, such as conversions vs. brand awareness.

DSP and Sponsored Display Minimum Investment

Amazon lowers the barrier to entry by directing all extra traffic to your Amazon listing via Sponsored Display ads. With a $1 spending limit, it’s simple for any brand to get initiated and gradually increase their spending before pledging.

On the other hand, DSP necessitates a more significant investment to reap the benefits of the program’s advanced disclosure and viewers’ insights. 

A monthly basis spend of $10,000 is required for the self-promotion solution. 

Moreover, a monthly basis spend of $35,000 is needed for the Amazon Managed Services DSP option. Advertisements can be fine-tuned by targeted advertising purchasing experts with this additional investment.

While Sponsored Display ads have a low entry cost, Amazon’s DSP program provides a more comprehensive ad solution at a higher price.

Control of Creatives by DSP and Sponsored Display

Control over innovation is among the most comprehensive extra features via DSP ads. To boost buyers’ interest in ads significantly and improve CTR, Amazon DSP ads can be designed mainly including the headline, company brand, and custom-crafted image. 

Furthermore, their Dynamic eCommerce Ads (DEA) are presently in beta and can showcase up to 20 ASINs with eCommerce characteristics like retail price and overview ratings.

In addition, Sponsored Display ads create display ad creative that is enhanced to produce results instantly. This ad type does not allow for any personalization, regardless of the size of your finances. 

However, it offers a lower-maintenance alternative for products that do not have the time or the energy to personalize ad creativity because it is dynamically improved using your Amazon product details.

Using DSP and Sponsored Display to Target Custom Audiences

Product targeting, views AdWords, and audience preferences are the three target-specific options available in Sponsored Display ads. Instead of requiring advertisers to create custom audience segments, 

Furthermore, Sponsored Display focuses on basic, computer-controlled retargeting. Also, DSP ads should be used by advertisers who want to create custom audiences. Advertisers can use Amazon DSP to create custom segments based on Amazon statistical and user behavior data. 

You can also create unique audiences with data directly gathered from your customers. This enables you to create custom audiences for your ads that are custom-built, experiential and highly targeted.

While these two distinct ad types each have their own set of advantages, they can be used together or individually to develop a platform. 

For example, sponsored Display customer retargeting ads are a less expensive way to collect achievement data for specific ASINs that can be used to maximize and target DSP campaigns.


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