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Marketing | Amazon
Amazon DSP offers powerful targeting capabilities, but increasing conversions requires...
By Vanshaj Sharma
Feb 12, 2026 | 5 Minutes | 
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Getting more conversions from your Amazon DSP campaigns is not rocket science, but it does require you to stop treating it like just another display advertising platform. Too many brands throw money at DSP hoping the Amazon algorithm will magically deliver results. That rarely works out the way you want.
Amazon DSP (Demand Side Platform) gives you access to programmatic ad inventory both on and off Amazon. The real power comes from combining that reach with Amazon shopping data. When you understand how shoppers behave before they buy, you can serve them ads at exactly the right moment. That is where conversions start to climb.
The biggest mistake advertisers make with Amazon DSP is launching campaigns without properly defining their audience segments. Amazon hands you an incredible amount of data about shopper behavior, purchase history and browsing patterns. Use it.
Start with in market audiences. These are people actively searching for products in your category right now. They are comparing options, reading reviews and checking prices. Your job is to get in front of them before they make a decision. In market targeting almost always outperforms broader demographic targeting because intent matters more than age or gender.
Lifestyle audiences work differently. They target people based on broader shopping behaviors and interests. Someone who regularly buys organic food products might be interested in your eco friendly cleaning supplies, even if they have not searched for them yet. These audiences help you reach people who fit your customer profile but have not started shopping your category.
Then there are retargeting audiences, which deserve their own strategy entirely. People who viewed your product page but did not buy are gold. They showed interest. Something stopped them. Maybe price, maybe distraction, maybe they wanted to think about it. A well timed DSP ad can bring them back.
Generic product images with your logo placed on top will not cut it with Amazon DSP. The creative needs to match the audience segment and their stage in the buying journey.
For cold audiences who do not know your brand yet, focus on the problem you solve rather than your product features. Show the benefit visually. If you sell ergonomic office chairs, do not just show the chair. Show someone working comfortably for hours without back pain. Context sells better than features when people are unfamiliar with you.
Warm audiences need different creative. They already know what you sell. Now you need to differentiate. Why choose your product over the competition? Price, quality, unique features or better reviews. Whatever your advantage is, make it obvious within the first two seconds of your ad.
Retargeting creative should address objections directly. If people view your product but do not buy, consider what might be stopping them. Offer social proof using review highlights. Address common concerns in your copy. Create urgency with limited time offers if that aligns with your brand.
Video often outperforms static images on Amazon DSP, but only when the first three seconds capture attention. People scroll quickly. If your video does not stop them immediately, the budget is wasted.
Amazon DSP provides multiple bidding options and choosing the wrong one can drain your budget without delivering conversions. Start with a clear goal. Are you focused on conversions or building awareness first?
For conversion focused campaigns, use viewable CPM with conversion optimization. This tells Amazon to bid higher on placements more likely to drive purchases. The algorithm learns over time which inventory converts best for your specific products. Give it at least two weeks of data before making major changes.
Dynamic bidding helps manage costs across placements. Amazon automatically adjusts bids based on conversion likelihood. High intent placements receive higher bids. Lower intent inventory receives reduced bids or gets skipped. This keeps CPM efficient while prioritizing quality traffic.
Budget pacing matters more than most advertisers realize. If Amazon spends your entire monthly budget in the first week, you miss opportunities later when different shoppers become active. Set daily budgets and use even pacing unless you intentionally want to front load spending.
If you have customer data from your own channels, bring it into Amazon DSP through audience matching. Upload email lists of past customers to create lookalike audiences. Amazon identifies shoppers with similar characteristics and behaviors.
This works especially well for subscription products or repeat purchase categories. You can target people who resemble your best customers instead of guessing demographics. Match rates vary, but even a partial match creates valuable targeting opportunities.
Exclude existing customers from acquisition campaigns. This sounds obvious, yet many advertisers waste budget showing ads to loyal buyers. Save that spend for conquest campaigns targeting competitor shoppers instead.
Competitor targeting is one of the most powerful Amazon DSP features. You can reach shoppers who view or purchase from competing brands. Serving ads during that decision moment dramatically increases conversion potential.
Amazon DSP reporting goes deeper than most advertising platforms if you analyze the right metrics. Do not focus only on direct conversions. Evaluate view through conversions, which capture purchases after someone sees your ad but does not click immediately.
View through attribution reveals the broader influence of display advertising. Many shoppers see an ad, remember the brand and return later through search or another channel. Last click attribution misses this entirely. A 14 day view window provides a clearer performance picture.
Track new to brand metrics separately from total conversions. Acquiring new customers costs more than retaining existing ones, so evaluate those campaigns differently. Strong new to brand performance signals effective targeting.
Brand halo reporting shows how DSP impacts total catalog sales, not just advertised products. A shopper may see one product ad but purchase another item from your brand. That still represents success and should be measured accordingly.
Allow campaigns enough time to collect meaningful data before making major adjustments. Amazon optimization requires volume. Constant daily bid or budget changes based on small samples usually reduce performance instead of improving it.
After two weeks, identify patterns. Which audiences deliver the lowest acquisition cost? Which creatives drive engagement? Which placements generate quality traffic rather than empty clicks?
Pause underperforming audiences decisively. If a segment spends several times your target CPA without conversions, it is unlikely to recover. Reallocate that budget toward proven performers.
Continue testing new audiences regularly. Amazon frequently updates targeting capabilities. Segments that failed months ago may now succeed. Dedicate a portion of budget, typically 10 to 15 percent, to experimentation.
Amazon DSP performance shifts throughout the year. Q4 brings higher competition and CPMs alongside stronger purchase intent. Summer may produce lower traffic but improved efficiency due to reduced advertiser pressure.
Align campaigns with your product seasonality. Increase awareness before peak demand begins, not during it. Early exposure ensures shoppers recognize your brand when purchase intent rises.
Treat Amazon DSP as a long term growth channel rather than a quick win tactic. Consistent exposure builds familiarity, trust and eventual conversion. Brands achieving the strongest results integrate DSP within a full funnel strategy.
They use DSP to build awareness and consideration, then retarget through Sponsored Products and Sponsored Brands to capture final conversions. This coordinated approach consistently outperforms isolated campaign execution.