Amazon DSP vs. Sponsored Ads: Which Should You Use?

So now you’re stuck wondering:
“What even is Amazon DSP? And do I need it?”

Don’t worry, you’re not alone. A lot of sellers and even big brands get confused between these two.

So we’re gonna break it down real simple. No jargon. Just a full guide from someone who actually runs these campaigns for clients every day at Channel Supply Experts.

First Things First – What Are Sponsored Ads?

If you’re already selling on Amazon, you’ve probably used these:

• Sponsored Products: Ads that show your individual product in search results and on product pages.
  
  

• Sponsored Brands: Banner-style ads that show multiple products + your logo.
  
  

• Sponsored Display: Retargeting-style ads that show up off and on Amazon.
  
  

These are self-service ads — you run them from your Amazon Seller Central account. You set your own budget, choose keywords or audiences, and run the ads. Pretty straightforward.

They’re perfect for:

• New sellers
  
  

• Launching products
  
  

• Getting more visibility in search results
  
  

• Boosting organic rank
  
  

Sponsored Ads = Pay-to-play visibility on Amazon.

So What Is Amazon DSP Then?

DSP stands for Demand-Side Platform. Fancy name, but here’s what it means:

With Amazon DSP, you’re not just advertising on Amazon.com — you’re running display and video ads across the entire internet using Amazon’s shopper data.

Your ads can show up:

• On Amazon
  
  

• On IMDb, Fire TV, Kindle
  
  

• On third-party websites and apps
  
  

• Even on competitor product pages
  
  

And here’s the power move:
You can retarget shoppers who looked at your product but didn’t buy — even after they leave Amazon.

You can also build audience groups based on:

• In-market shoppers
  
  

• Lifestyle segments
  
  

• Lookalike audiences
  
  

• Geographic location
  
  

• Purchase behaviors
  
  

It’s a managed service or enterprise-level tool, meaning it’s mostly handled by professionals or Amazon partners (like us 😎).

Key Differences (Let’s Make It Easy)

When Should You Use Sponsored Ads?

Let’s be real — Sponsored Ads are a must for almost every seller. Even beginners. If you’re just getting started or launching new products, this is where you start.

✅ You need fast visibility
✅ You’re testing new products
✅ You want more control over your budget
✅ You want to rank higher in Amazon search

They’re easy to learn, budget-friendly, and work well with tight campaigns.

We usually tell our clients:

Start with Sponsored Products. Learn the ad system. Then scale into DSP if you’ve got the data and budget.

When Does Amazon DSP Make Sense?

Now if you’re already spending over $5,000/month on ads or you’re a brand with big growth goals — DSP opens up a whole new level of targeting.

Use DSP if:

✅ You want to retarget lost shoppers off Amazon
✅ You’re selling high-ticket or premium products
✅ You want to build brand awareness beyond just search
✅ You need to track full-funnel performance (views to sales)
✅ You’re running ads in multiple regions or have a storefront

Amazon DSP is super powerful. You can target shoppers who searched for your competitors, saw your product, or added to cart but didn’t convert — and you can bring them back days later on completely different platforms.

It’s not just ads. It’s brand strategy.

Real Talk: What We Recommend as Experts

Let’s not sugarcoat it.

• If you’re a solo seller or small brand? Stick with Sponsored Ads first.
  
  

• If you’re scaling fast or already running big PPC budgets? Add Amazon DSP to your strategy.
  
  

You don’t have to choose one or the other forever. In fact, they work better together.

We manage both Sponsored Ads and DSP for our clients at Channel Supply Experts. When we combine them, results look like this:

✅ Sponsored Ads drive immediate traffic
✅ DSP keeps your brand top of mind
✅ You retarget non-buyers
✅ Your CPCs go down and your ROAS goes up

That’s the kind of ad ecosystem Amazon wants from you.

Common Mistakes to Avoid (Please Don’t Do This 🙃)

❌ Don’t start DSP without fixing your listings first
❌ Don’t spend $5K+ on DSP if your product isn’t even ranked
❌ Don’t ignore Sponsored Ads — they’re your foundation
❌ Don’t try to DIY DSP if you don’t understand audiences
❌ Don’t skip retargeting — that’s where DSP shines the most

Talk to a Real Amazon DSP Expert Today

We get it — Amazon advertising Management can be overwhelming. But you don’t have to figure it out alone.

At Channel Supply Experts, we help sellers just like you:

• Run profitable Sponsored Ad campaigns