Amazon DSP Ads vs Amazon Standards Ads: What is the difference?

TL;DR

What is the main difference between Amazon Standard Ads and Amazon DSP?

Amazon Standard Ads (Sponsored Products, Sponsored Brands, Sponsored Display) are Cost-Per-Click (CPC) tools designed to capture active intent within the Amazon search results. Amazon DSP (Demand Side Platform) is a programmatic Cost-Per-Mille (CPM) solution used to generate brand awareness and retarget shoppers across the entire web, not just on Amazon.

Which platform offers better ad formats (Video & Audio)?

While Amazon Standard Ads support basic video, Amazon DSP is the exclusive gateway to premium programmatic inventory. This includes Streaming TV (STV) ads on Prime Video and Twitch, Online Video (OLV) on third-party sites, and Audio Ads that run on Amazon Music and Alexa-enabled devices.

Who can run Amazon DSP ads?

Standard Ads are strictly for brands that sell physical products on Amazon (Endemic). Amazon DSP is available to both Amazon sellers and Non-Endemic brands (e.g., insurance, automotive, services) that do not sell on Amazon, allowing them to link ads directly to their own external websites.

What are the costs and entry barriers of Amazon DSP advertising?

Standard Ads are accessible to everyone with a Seller Central account and have no minimum spend. Amazon DSP is an enterprise-level tool; accessing it generally requires a managed service commitment: typically a minimum of $50k/month.

There are 4 major Amazon Ad types, they are: Sponsored Products, Sponsored Brands, Sponsored Display, and Amazon DSP. This wide range of choice can create confusion, especially for inexperienced Amazon PPC users. While many sellers understand the difference between keyword-based ads (Sponsored Products) and display ads, the line often blurs when comparing Amazon Sponsored Display (SD) and Amazon DSP. Both appear effectively as “banner ads,” and both can appear off-Amazon. However, treating them as interchangeable or not understanding the difference between them can be a costly mistake.

Let’s briefly recap the three standard Amazon ad types, before diving into Amazon DSP advertising in a lot more detail.

Amazon Standard Ads: Sponsored Products, Sponsored Brand & Sponsored Display Recapped

Sponsored Products ads are ads that show up mostly on the Amazon search result page. If you see the first 2-3 results with the “sponsored” tag on the search page and also in the middle of the product listing then it is sponsored product ad. Out of the Amazon ad types, this one allows you to use both keywords and product targeting options. It also allows for both automatic and manual targeting types.

Amazon Sponsored Brands Ads (formerly Headline Search Ads,) are ads that appear both in the search results, product pages (via product attributed targeting), and other places such as the checkout page. These ads normally show up as long rectangular banners in both horizontal and vertical formats. With Sponsored Brands you get 3 Ad Format types. There are Product Collection, Store Spotlight, and Video. On top of that, you get the option of keywords and product targeting option as well.

Because of the relatively low inventory compare to Sponsored Products, Sponsored Brand ads on average runs on a higher CPC (cost per click). We advise you to run any Sponsored Brands ads after your Sponsored Products campaign is matured.

Amazon Sponsored Display Ads are an ad format that appears on the Amazon product listing page and off Amazon. It is a small rectangular or square banner that appears under the listing bullet points. The banner shows the main product image of the ASIN you are advertising for.

There are two types of targeting options, 1) Views remarketing 2) Product targeting. The views remarketing is more automatic, while the product targeting is manual and requires you to give the list of ASIN/Bid information into the campaign.

Intro to Amazon DSP Advertising

Now let’s dive into Amazon DSP (demand-side platform), Amazon DSP enable the advertiser (sellers) to programmatically buy display & video ad placement off the Amazon retail platform. DSP can reach an audience in the following Amazon own media properties and partners:

• Amazon website
• Fire TV
• IMDb
• Freedive (IMDb Streaming)
• Kindle
• Apps
• Published Partners
• Third-Party Exchanges

For example, a customer goes to Amazon and searches for a product but did not purchase, in the next step the customer then goes to IMDB, sees video ads of the same product he was browsing for, then returns to Amazon to make the purchase. What I described was the successful use case for remarketing a customer using Amazon DSP advertising.

Another thing to add is that DSP offers a lot less control compared to the Sponsored ad types, since it is 100% programmatic bidding, not self-service, and priced using CPM (Cost per mile) instead of CPC (Cost per click). The average conversion can get very expensive, but the potential audience can be massive. Another important thing to note! Sellers need to commit $3000 a month to start with Amazon DSP advertising. This makes this the very last Amazon advertising ad type you want to go with.

Amazon Sponsored Display vs. Amazon DSP: The Critical Differences

Think of Sponsored Display as the “retail-aware” version of display advertising. It is accessible, automated, and designed strictly for conversion within the Amazon ecosystem. It uses a Cost-Per-Click (CPC) model, meaning you only pay when a shopper clicks. It is democratized access to display inventory, but it comes with guardrails: you have limited creative control, and you can generally only target audiences based on shopping behaviors directly on Amazon (like viewing your product or a competitor’s).

Amazon DSP, by contrast, is a holistic programmatic advertising console. It is not just about “retail” but about the entire media funnel.

• Pricing Model: Unlike SD, Amazon DSP typically operates on a CPM (Cost Per Mille) basis. You pay for impressions (views), not clicks. This shifts the focus from immediate conversion to brand awareness and consideration.
• The “Link-Out” Ability: This is a massive differentiator. Sponsored Display ads must link to an Amazon product detail page. Amazon DSP ads can link anywhere—to your own Direct-to-Consumer (DTC) website, a custom landing page, or an Amazon storefront. This makes DSP the only option for “non-endemic” brands (brands that don’t sell physical goods on Amazon, like insurance or automotive companies) to leverage Amazon’s audience data.
• Granularity: Sponsored Display relies on pre-built audience segments (e.g., “Shoppers who viewed my product”). DSP allows for granular audience construction. You can build an audience of “people who bought a competitor’s product in the last 365 days, live in California, and stream romantic comedies on Prime Video.” The layering of behavioral, contextual, and demographic data in DSP is lightyears ahead of Sponsored Display.

Deep Dive: Amazon DSP Ad Formats & Placements

To truly master Amazon DSP, you must understand the inventory you are buying. Unlike standard ads which are static, DSP offers a rich media ecosystem. If you are wondering “Video ads purchased on Amazon DSP includes which of the following formats?” or where your audio ads actually run, here is the technical breakdown.

Video Ads via Amazon DSP Amazon DSP allows you to buy video inventory programmatically across the web. These generally fall into two distinct categories:

1. Streaming TV (STV) Ads: Often referred to as OTT (Over-the-Top) or CTV (Connected TV) ads, these are full-screen, non-skippable videos that play on TV devices. They appear within content on services like Amazon Prime Video, Freevee (formerly IMDb TV), Twitch, and live sports (like Thursday Night Football). Because these run on TV screens, they are not “clickable.” Their goal is purely brand impact.
2. Online Video (OLV) Ads: These are video ads that appear on desktop, mobile, and tablet devices. Unlike STV, these are clickable and can drive traffic to a product page. OLV formats include:
   • In-Stream Video: These play before, during, or after video content (like a pre-roll ad on a news site).
   • Out-Stream Video: These appear outside of a video player, often embedded within a text article. As the user scrolls down a blog or news site, a video player expands and auto-plays your ad.

Where can Audio Ads be Purchased within the Amazon DSP?

Audio advertising is one of the most underutilized assets in the DSP console. When you purchase Audio Ads through Amazon DSP, you are not just buying a slot on a radio station; you are accessing Amazon’s premium audio ecosystem.

Your 10-to-30-second audio creatives can run across:

• Amazon Music: specifically on the ad-supported free tier.
• Alexa-Enabled Devices: Your ad can play during flash briefings or news updates on Echo devices.
• Amazon Publisher Services (APS): This is crucial. Your ads can extend beyond Amazon properties to third-party audio publishers and podcasts that are part of Amazon’s exchange.

The “superpower” of Amazon Audio ads is that they are companion-banner enabled. When an ad plays on an Echo Show or a Fire TV (via Amazon Music), a clickable banner image appears on the screen, bridging the gap between passive listening and active shopping.

Amazon DSP Ad Creative Formats

Amazon DSP advertising features four different types of ad creative formats that differ significantly from the standard Amazon ad products. These are:

• Online Video (OLV): Pre- or mid-roll ads within OTT content and publisher sites
• Streaming TV (STV): Non-skippable full-screen ads on Fire TV and Prime Video
• Audio Ads: Voice-enabled ads that play on Amazon Music, Alexa, and Audible
• Programmatic Display: High-impact creatives across web and mobile

Leveraging these formats allows for more creative control and this can be beneficial for brand building purposes.

Eligibility Criteria for Seller who want to Run Amazon DSP Ads

• You have sales of at least 50K USD a month, with net profit to at least cover the 3K commitment for 2 months
• Your product is selling for at least $30 USD, hard to make the numbers work if your AOV is low
• Your objective is to grow your awareness brand and potential audience
• You are not optimizing for profits
• Understand that it takes a while for the Amazon DSP algorithm to optimize, results not as immediate as say Sponsored Products.

When it makes sense to run Amazon Programmatic Ads (DSP Ads)

In general, there are several scenarios that justify using Amazon DSP ads. The most common ones include:

Increasing Upper-Funnel Reach & Brand Awareness

DSP puts your brand in front of a much broader, but also less relevant audience. Placements on fire TV, editorial sites, audio platforms help you broaden awareness for your brand. This is particularly helpful if you have strong, branded assets (i.e. celebrity endorsed)  and want to introduce new product lines, push seasonal campaigns, or reposition your brand.

Amplifying the Reach of Your Ads Beyond Just Amazon

As advertisers reach efficiency frontiers, spending more on the same type of ads does not make sense any more. With a sufficient ad budget saturation is eventually reached and the law of diminishing returns (aka incremental ROAS) kicks in. Use a layered approach to maximize overall campaign efficiency:

• Use Sponsored Products to drive conversions
• Capture new audiences with Sponsored Brands
• Re-engage shoppers via Sponsored Display
• And bring DSP in to close the loop and to boost brand awareness with video or audio ads.

Reaching Shoppers Off Amazon Who Visited Your Listings

This is a classic remarketing scenario that aims at reaching potential buyers beyond the Amazon marketplace. DSP uniquely re-targets users based on real purchase signals, such as:

• Viewers of your listings
• Cart abandoners
• Similar-product audiences

These ads then appear across third-party apps, publisher sites, and streaming platforms—reconnecting shoppers deeply engaged with your funnels 

Building Multi-Media Campaigns for Brand Recognition

If you have strong creatives, standard Amazon ads can be quite limiting in deploying them. If you want to combine display, video, and audio ads, then DSP is your all-in-one hub to execute more complex campaigns. Use lightning-fast audience targeting, frequency caps, and consistent, custom creatives across multiple formats.

Accelerating Luxury, Lifestyle, or CPG Product Launches

Video (OLV/STV) and audio ads shine are great for products that depend on brand driven differentiation and value creation. Introducing fragrances, beauty products, or lifestyle brands requires strong branding to differentiate them from cheaper and more generic options available. The storytelling power of DSP ads helps engage customers emotionally and increases brand recall. This is something that simple product ads cannot deliver.

How to Run and Scale Amazon DSP Campaigns Effectively

When you add DSP to your marketing mix, ensure success by:

Defining Clear Objectives:

• Brand awareness? Traffic? Consideration? Each format serves a nuance. Choose DSP line items accordingly and make sure to select only one main KPI for each campaign.

Layering with Amazon Ad Funnels:

• Top-funnel DSP (awareness via video/audio)
• Mid-funnel Sponsored Brands/Display
• Bottom-funnel Sponsored Products (conversion)

Audience Segmentation:

• Select audiences based on size and level of intent. Basic choices are:

Creative Messaging:

• Strong and well differentiated creatives are a MUST for DSP ads
• Use immersive video for STV/OLV
• Feature product heroes and CTAs in audio ads (“Alexa, add to cart”)
• Maintain brand consistency across text, visuals, and tone.

Measurement & Attribution:

• While DSP advertising cannot compete with standard direct response ads in terms of ACoS, it is still important to measure and attribute sales to optimize ads over time
• Lifestyle targeting: based on purchase behavior or category affinity.
• Retargeting: shoppers who have viewed or bought products recently.
• DSP offers robust metrics: reach, frequency, viewability, eCPM
• Tie performance to onsite conversions, lift studies, and post-campaign attribution

Comparison Table: DSP vs Sponsored Ads: A Strategic Overview

Goal	DSP (Display, Video, Audio)	Sponsored Ads (PPC)
Awareness & Reach	Extremely scalable	Limited; only on Amazon
Funnel Stage	Top/mid-funnel	Mid to bottom (consideration → purchase)
Pricing Model	CPM-based (bigger budgets)	CPC-based (self-serve, micro budgets)
Creative Flexibility	Full-screen video/audio/display	Limited to product listings
Audience Targeting	Lifestyle/behavior, site retargeting	Keyword, ASIN, interest-based targeting
Creative Formats	Video, audio, interactive display	Banner/Carousel/product listing

Conclusion: Amazon DSP Ads only Suitable for Big Sellers

With the proliferation of Amazon PPC options, it is important for advertisers/sellers to know what exactly each Sponsored Ad type does, how it is targeted, and where the ad is placed. You need to make sure that you are using the right ad type for the right situation and product life cycle. For example, you will not need to use a hammer for a screw head as you will not be using Sponsored Brands campaigns if your objective is to make sales. Amazon DSP ads, also referred to as programmatic advertising are certainly a useful tool – but as outlined in this article only for huge brands with significant budgets for brand awareness building. Most sellers are better off with the more tactical standard ad formats that focus on reaching shoppers where they are most likely going to convert: the Amazon marketplace itself.

 Our suggestion is to think and do some careful analysis on each Amazon ad type and plan out carefully on when and how to use these ad types.

About the Author

Rick Wong is a veteran Amazon seller who is into all things Amazon FBA. Having sold his Amazon business, Rick writes and talks about this topic to share his passion for Amazon FBA business building. A data geek at heart, he is currently the Co-Founder of SellerMetrics, a software tool that helps Amazon sellers automate the tedious and manual work of Amazon PPC Optimization. Our tool has been knowing to bring down ad spend and increase sales at the same time, average user can expect a 25% increase in ROI immediately after use, sign up for our free trial to find out.

FAQs: Amazon DSP Ads vs Amazon Standard (Display) Ads