The Challenge
Sponsored Ads alone are not enough for sustainable growth
Sponsored Products, Brands, and Display are powerful tools — but they only reach buyers who are already actively searching on Amazon. That's the lower part of the funnel: users with concrete purchase intent. Relying exclusively on Sponsored Ads means competing with more and more advertisers for the same keywords, driving up CPCs, and depending on a single channel.
The result: rising ad costs with stagnating reach. New audiences who don't yet know your brand are never reached at all. Without upper-funnel measures, there's no continuous pipeline of potential customers who will convert later. Especially during product launches, seasonal campaigns, or market entry, this blind spot becomes a growth bottleneck.
Amazon DSP closes this gap. Programmatic advertising makes it possible to reach audiences along the entire funnel — from initial brand awareness through the consideration phase to retargeting. The combination of Sponsored Ads and DSP is the key to a scalable, profitable Amazon advertising strategy.
Full-funnel advertising with Amazon DSP
Amazon DSP (Demand Side Platform) is Amazon's programmatic advertising platform. It enables you to serve display, video, and audio ads across Amazon-owned properties as well as third-party websites. Unlike Sponsored Ads, DSP isn't based on keyword targeting but on audience signals: purchase behavior, lifestyle segments, in-market audiences, and custom audiences. This way, you reach target groups that aren't accessible through traditional search ads — and connect awareness, consideration, and conversion into a seamless full-funnel strategy.
DSP ad formats at a glance
DSP ad formats and advertising options at a glance
Amazon DSP offers a wide range of ad formats that go far beyond classic display banners. Each format has specific strengths and is suited for different funnel stages and campaign goals. As an Amazon DSP agency, we deploy the right combination for your brand.
Programmatic display ads appear on Amazon, in the Amazon app, on Fire Tablet wake screens, and across thousands of third-party websites in the Amazon Publisher Network. Formats range from static banners and responsive e-commerce ads to interactive rich media creatives. Display ads work across all funnel stages — from awareness through consideration to retargeting. Through automatic creative optimization (DCO), product images, prices, and ratings are dynamically pulled from the listing.
Video ads via Amazon DSP run as in-stream (pre-roll, mid-roll) and out-stream (in-feed, in-article) across Amazon platforms and the open web. Online video ads (OLV) are particularly effective for mid-funnel campaigns: they tell your brand story, demonstrate product benefits, and generate significantly higher engagement rates than static formats. Video completion rates and brand lift can be measured through the DSP console.
Streaming TV ads reach audiences on Fire TV, Freevee, and other Amazon streaming platforms — in a premium, high-attention environment. Audio ads on Amazon Music extend reach to users in moments when no screen is available. Both formats are non-skippable and achieve high completion rates, making them ideal for awareness and branding campaigns.
Amazon Marketing Cloud is Amazon's privacy-compliant clean-room solution for advanced analytics. With AMC, we create custom audiences based on purchase history, search behavior, and campaign interactions. Overlap analyses reveal which users were reached across multiple touchpoints, and path-to-conversion reports identify the most effective campaign combinations. These insights feed directly into the optimization of your DSP strategy.
Sponsored Ads are search-based: they appear when users actively search for keywords. DSP is audience-based: ads are served based on user profiles and behavioral data — regardless of whether the user is currently on Amazon. Sponsored Ads are ideal for demand capture (harvesting existing demand), DSP for demand generation (creating new demand). The strongest results emerge when both channels work together as an integrated full-funnel strategy.
Our Advantage
Award-winning DSP expertise
OMNIFOX is among the leading Amazon DSP agencies in Germany. As a finalist at the Amazon Ads Partner Awards 2025 in the performance category, we've demonstrated that our full-funnel strategies deliver measurable results — not just by our own assessment, but independently validated by Amazon itself.
Our DSP team consists of former Amazon employees with direct experience in programmatic advertising and campaign management. We don't just know the platform as users — we understand the underlying logic: how auction mechanisms work, which audience segments deliver the best results, and how to optimally allocate budgets across funnel stages.
As an Amazon Ads Verified Partner, we have access to beta features and direct contacts at Amazon. In practice, this means we can use new targeting options and reporting tools before they become generally available. For our clients, this is a measurable competitive advantage — whether for launching new creatives, using exclusive audience segments, or adapting early to platform updates.
Success Story
bett1 – Full funnel to an award
For bett1, we developed a connected full-funnel strategy combining streaming TV, DSP display, and Sponsored Ads. Awareness campaigns on Fire TV generated qualified traffic, mid-funnel video ads strengthened brand preference, and targeted retargeting closed the loop to conversion. The result: top 3 at the Amazon Ads Partner Awards 2025 — proof of the effectiveness of integrated DSP strategies.
Our Process
How we develop your DSP strategy
1. Analysis & Audit: We analyze your current advertising mix, identify funnel gaps, and evaluate the DSP potential for your product category.
2. Strategy & Setup: Based on the analysis, we define target audiences, funnel stages, and KPIs. We configure campaigns, audiences, and creatives in the DSP console.
3. Launch & Optimization: After campaign launch, we continuously optimize — bidding, frequency capping, creative rotation, and audience refinement based on real-time data.
4. Reporting & Scaling: Monthly performance reports with AMC analyses show impact across all funnel stages. We scale successful strategies to additional markets and product groups.
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FAQ
Sponsored Ads are search-based ads that appear on Amazon when users search for specific keywords — they capture existing demand. Amazon DSP is a programmatic platform that serves ads based on audience data — on Amazon and across the web. DSP is especially suited for awareness, consideration, and retargeting, reaching users before they actively search. The strongest results come from combining both channels in an integrated full-funnel strategy.
Yes. Amazon DSP is available to sellers, vendors, and even brands that don't sell directly on Amazon. There's no minimum ad spend requirement for sellers, but the platform requires experience in programmatic advertising. Working with a specialized Amazon DSP agency like OMNIFOX ensures budgets are deployed efficiently and campaigns are managed professionally.
DSP campaigns are measured using KPIs matched to the respective funnel stage: Awareness (impressions, reach, video completion rate), Consideration (detail page views, brand search lift), Conversion (ROAS, total sales, purchase rate). With Amazon Marketing Cloud (AMC), customer journeys can be analyzed across all touchpoints — making the incremental contribution of DSP to overall performance visible.
There's no fixed minimum budget for Amazon DSP. However, for meaningful results, we recommend a monthly DSP budget starting at approximately €5,000 to collect enough data for optimization. The exact amount depends on your goals, product category, and target markets. In a free initial consultation, we analyze your situation and provide a concrete budget recommendation with expected KPIs.