Demand-side platform (DSP)

A demand-side platform (DSP) is a technology that automates the purchase of digital advertising across publishers, supply-side platforms (SSPs) and exchanges, enabling advertisers to reach desired audiences in real time. With integrated advanced controls, advertisers choose relevant audiences, ad placements and pricing. It also provides analytics for understanding impact and optimising campaigns. DSPs streamline cross-channel ad buying, enhancing efficiency and return on investment (ROI). By using a DSP, advertisers can effectively monitor and manage their campaigns.

A DSP works by using real-time bidding (RTB) to purchase ad inventory. When someone visits a webpage, the DSP evaluates the available ad inventory and bids on it within milliseconds, ensuring the ad reaches the right audience at the right time. This media-buying process is automated and relies on sophisticated algorithms and digital analytics to make quick decisions. Additionally, advertisers gain advanced controls over reach, bidding and placements, which helps them meet their specific advertising goals effectively. By leveraging RTB, DSPs can provide real-time adjustments and optimisations for ongoing campaigns.

To understand the programmatic lifecycle, let’s start with the audience, or consumers, an ad is ultimately served to:

Using a DSP is beneficial because it automates the media buying process, saving time and effort. A DSP allows advertisers to access a vast network of inventory across publishers and the open web. DSPs help advertisers reach the right audience based on measurements, optimise ad performance through real-time bidding (RTB) and maximise the efficiency of advertising budgets.

With audience optimisation, advertisers can reach specific groups of consumers who are most likely to be interested in their products or services. This ensures that ads are more relevant and effective. DSPs also provide comprehensive analytics and reporting, allowing advertisers to refine their programmatic advertising strategies and improve ROI.

In summary, the key benefits of a demand-side platform include automation and efficiency, real-time optimisation, precise reach and centralised management.

A DSP enables advertisers to buy ads, while a supply-side platform (SSP) allows publishers to sell ad space. Think of it like this: DSPs are the shoppers at the auction, while SSPs are the sellers. Both DSPs and SSPs work together to ensure that ads reach the right customers at the right time. While DSPs cater to advertisers, SSPs cater to publishers, facilitating the sale of their ad inventory.

Now that we’ve explored how a DSP transforms the ad buying process, let’s break down its core components to understand the mechanics behind this seamless operation.

There are two types of DSPs: self-serve and full-service.

Here are some examples of how brands have used Amazon DSP.

There are a few notable differences between Amazon DSP and sponsored ads, and when to use each.

Amazon DSP is an omnichannel marketing solution designed for programmatic, audience-first campaigns. It helps brands build awareness and reach relevant audiences across Amazon-exclusive properties like Prime Video and Twitch, as well as thousands of third-party apps and websites. Amazon DSP uses unique browsing, shopping and streaming signals for advanced targeting, and supports buying methods including real-time bidding (RTB), private marketplaces (PMP) and programmatic guaranteed. It’s ideal for upper-funnel strategies, retargeting and advertisers who don’t sell on Amazon.

Sponsored ads are self-service, cost-per-click solutions optimised for driving product sales on Amazon. They appear in high-visibility placements like the top of shopping results and product pages, reaching shoppers who are actively searching with relevant keywords or viewing similar products. They’re best for lower-funnel conversions and simpler campaign management with smaller budgets.

Think of it as a funnel: Amazon DSP reaches audiences at the top, before they start searching, while sponsored ads capture demand at the bottom, when purchase intent is highest. Used together, they create a connected full-funnel strategy.

Bottom line: Use Amazon DSP when you need programmatic reach and brand building across channels. Use sponsored ads when you want to drive sales by reaching shoppers actively searching on Amazon.

If you’re ready to get started, Amazon DSP is available to you. Whether or not you sell products on Amazon, you can use the self-service and managed-service options available. You can register today to start using Amazon DSP or contact an Amazon Ads account executive to learn more.

Pricing and buying options for Amazon DSP depend on the format and placement of your ads. You have no shortage of options when using Amazon DSP: You can purchase audio ads, display ads and video ads. For self-service customers, there are no management fees, since you’ll have full control over your campaigns. For managed services, it typically requires a minimum spend of $50,000 (minimum may vary per country).

Learn how to plan, launch and optimise Amazon DSP campaigns with free courses and certifications from Amazon Ads Academy.