Amazon PPC VS DSP: Ultimate Showdown for Amazon Sellers

For anyone looking to scale their business on Amazon, the advertising landscape can feel like a labyrinth. Two of the most powerful tools at your disposal are Amazon PPC and Amazon DSP, and the question often arises: which one is better for my business?

The truth is, this isn’t a simple “either/or” choice. Amazon PPC and DSP are fundamentally different platforms designed to achieve different goals. While PPC is your high-intent, direct-response workhorse, DSP is your brand-building, audience-expanding powerhouse. The most successful Amazon brands don’t choose one over the other; they strategically use both to create a comprehensive, full-funnel marketing strategy.

Let’s break down each platform, compare their key features, and show you how to use them together for maximum impact.

What is Amazon PPC? (Pay-Per-Click)

Amazon PPC refers to Amazon’s Sponsored Ads suite, which includes Sponsored Products, Sponsored Brands, and Sponsored Display. As the name suggests, you pay only when a customer clicks on your ad.

Core Function: PPC is a direct-response advertising model. Its primary goal is to put your product in front of shoppers who are actively searching for or browsing items like yours on Amazon, driving immediate clicks and sales.

Key Characteristics:

• Targeting: Primarily based on keywords and products. You bid on search terms you believe customers are using to find your item.
• Placement: Your ads appear in highly visible spots within the Amazon marketplace, such as on search results pages, product detail pages, and even competitor listings.
• Cost Model: Cost-per-click (CPC). You set a maximum bid for a keyword, and you only pay when a customer clicks on your ad.
• Accessibility: Highly accessible to all sellers. There are no minimum budgets, and campaigns can be managed directly from your Seller Central or Vendor Central account.
• Goal: Primarily focused on bottom-of-the-funnel shoppers—those who are ready to make a purchase.

What is Amazon DSP? (Demand-Side Platform)

Amazon DSP is a programmatic advertising platform. Unlike PPC, it is not a self-service tool for most sellers and typically requires a significant ad spend or an Amazon-managed service.

Core Function: DSP’s purpose is to reach audiences—not just keyword searches—both on and off Amazon. It uses Amazon’s vast, first-party customer data to target specific audiences based on their browsing, purchasing, and streaming behavior.

Key Characteristics:

• Targeting: Primarily based on audiences, not keywords. You can target shoppers based on demographics, lifestyle, past browsing history, and whether they’ve viewed your products or a competitor’s.
• Placement: Ads appear across Amazon’s owned properties (like IMDb, Fire TV, Twitch, and Amazon’s own websites) as well as a massive network of third-party websites and mobile apps.
• Cost Model: Cost-per-thousand impressions (CPM). You pay for every 1,000 times your ad is shown, regardless of whether it gets a click.
• Accessibility: Less accessible for small businesses. DSP typically requires a minimum monthly spend (often in the tens of thousands of dollars) and is managed by an expert or a dedicated Amazon team.
• Goal: Focused on top- and mid-funnel marketing. The goal is to build brand awareness, acquire new customers, and retarget shoppers who have shown interest but haven’t purchased.

Amazon PPC vs. DSP: A Side-by-Side Comparison

Export to Sheets

When to Use Each Platform: A Strategic Approach

Choosing between PPC and DSP isn’t about which one is “better,” but rather which one aligns with your immediate goals and budget.

✅ Use Amazon PPC When:

• You’re launching a new product. PPC is the fastest way to get your product in front of motivated buyers, generate initial sales, and start building organic rank.
• Your budget is limited. With no minimum spend, you can start small, test different keywords, and scale your campaigns as you see profitable returns.
• Your goal is direct sales and quick ROI. PPC is designed to capture high-intent traffic, making it the most efficient way to generate sales from active shoppers on Amazon.
• You’re looking to optimize for organic rank. The sales velocity and data from your PPC campaigns can directly influence your product’s organic position on Amazon’s search results pages.

Use Amazon DSP When:

• You have a significant advertising budget. The high minimum spend for DSP campaigns makes it a viable option only for established brands that can afford the investment.
• Your goal is brand building. DSP allows you to build brand recognition by placing video and display ads in front of millions of potential customers, even when they’re not on Amazon.
• You need to retarget customers. This is one of DSP’s most powerful features. You can show ads to shoppers who visited your product page but didn’t buy, reminding them to return and complete their purchase.
• You want to drive external traffic. DSP can bring high-quality, pre-qualified traffic to your Amazon listing from outside the platform, which can boost your sales and BSR.
• You’re running a full-funnel strategy. DSP campaigns can be used to raise awareness at the top of the funnel, while PPC campaigns capture the conversions at the bottom.

The Power of Synergy: Using Both Together

The most effective Amazon advertising strategy involves using PPC and DSP in tandem to create a holistic ecosystem. This approach is often called a “full-funnel” strategy.

Here’s how it works:

1. Awareness (Top of Funnel): Use DSP to reach new audiences and build brand awareness on platforms like Fire TV, Twitch, and thousands of other websites. The goal is to introduce your brand to people who haven’t searched for your products yet.
2. Consideration (Mid-Funnel): A customer sees a DSP ad and clicks, but doesn’t buy immediately. They continue their online journey. You can use DSP‘s retargeting capabilities to show them dynamic ads with your product wherever they go online, reminding them of their interest.
3. Conversion (Bottom of Funnel): The customer returns to Amazon and performs a search. Your PPC campaigns ensure your product appears at the top of the search results, capturing that final, high-intent click that leads to a sale.

In this model, PPC and DSP are not competing—they are cooperating. The data from your PPC campaigns can be used to inform your DSP audience targeting, and the sales from your DSP campaigns can help boost your organic rank on Amazon.

The final verdict?

Think of Amazon PPC as your conversion engine and Amazon DSP as your brand-building and retargeting engine. If your goal is to grow from a small business to a major brand, you’ll eventually need both. Start with PPC to build a profitable foundation, and when your budget allows, introduce DSP to scale your business to new heights.