The Complete Guide to Setting Up Amazon Display Ads Using the DSP Platform

Amazon’s advertising landscape has grown rapidly in recent years, and brands selling on or off Amazon are now leveraging more advanced tools to capture consumer attention. Amazon’s Demand-Side Platform (DSP) is among the most powerful tools. Unlike traditional Amazon PPC ads, DSP offers programmatic display advertising on and off Amazon’s ecosystem. Setting up Amazon Display Ads through DSP can be a game-changer for UK sellers and brands looking to scale beyond search-based advertising.

Amazon DSP (Demand-Side Platform) is an automated platform that allows advertisers to buy display, video, and audio ads at scale. These ads appear across Amazon-owned properties like IMDb and Kindle, as well as third-party sites and apps. The significant difference between DSP and regular Sponsored Ads is that DSP campaigns aren’t restricted to Amazon shoppers searching for keywords. Instead, it targets audiences based on their behaviour, demographics, interests, and past purchasing habits.

This makes DSP an ideal solution for remarketing, brand awareness, and driving traffic to external websites. It benefits established brands or agencies looking to build long-term visibility beyond Amazon.

Display ads on DSP go beyond keyword intent. They allow you to reach potential customers before they even begin their product search. For example, if someone viewed a product similar to yours but didn’t purchase it, you can use DSP to serve them tailored display ads across multiple devices and platforms. This increases brand recall and brings them back into the conversion funnel.

What makes DSP even more powerful is Amazon’s first-party shopping data. It gives advertisers deep insight into what users are searching for, what they browse, and what they buy. With such high-quality targeting capabilities, UK businesses can tailor ad creatives and campaigns more effectively, ensuring better ROI.

Unlike Amazon PPC, which any registered seller can use through Seller Central, DSP is more exclusive. There are two main access routes: managed service and self-service.

With managed service, Amazon handles your campaign creation, optimisation, and reporting—but it requires a minimum spend (usually around £10,000). This is ideal for larger brands or those looking to test DSP with expert support.

On the other hand, self-service DSP is more flexible but requires advanced knowledge of programmatic advertising. It is typically accessed through a certified UK Amazon agency, which can offer strategic support, setup, and management for sellers who want full control but lack internal technical resources.

Once you gain access, the campaign setup process involves several key steps. First, define your campaign objective. DSP campaigns can support goals like brand awareness, consideration, and conversions. Depending on your goal, the type of ad format and targeting strategy will differ.

Next, you’ll need to select your audiences. Amazon provides options such as in-market audiences (people actively browsing similar products), lifestyle segments, and retargeting groups. For instance, you can target users who viewed your product but didn’t purchase within the last 30 days.

Your display ad visuals come into play during the creative development phase. Amazon supports static banners, responsive display ads, and video formats. To maximise performance, your creatives should feature clear branding, a compelling call to action, and imagery that aligns with your product’s look and feel. Remember, you’re not just selling a product—you’re telling a story.

Then comes bidding and budgeting. DSP allows real-time bidding, where your ads compete for impressions based on your set bid strategy. You can choose cost-per-mille (CPM) or viewable CPM, depending on how you want to pay for exposure. For new campaigns, start with a test budget to monitor performance before scaling up.

Finally, launch your campaign and monitor metrics such as reach, click-through rate (CTR), detail page views, and purchase rates. Unlike traditional PPC, DSP performance takes time to ramp up, so give your campaigns at least two to four weeks before making major adjustments.

Success with DSP depends heavily on ongoing optimisation. Analyse which audience segments respond best and adjust bids accordingly. If certain creative formats underperform, test new visuals or messaging. Seasonal factors also play a big role, so align your campaigns with key UK retail events such as Black Friday, Prime Day, or Boxing Day.

Also, review frequency caps to avoid overexposing the same users to your ads. Too much repetition can lead to ad fatigue and wasted spend. Instead, focus on segmenting your audience funnel—serve educational content to cold leads, and direct offers to warm ones.

Working with a certified Amazon DSP partner can dramatically streamline this process. Agencies with deep experience in Amazon’s algorithm and UK market trends can help optimise your budget allocation, A/B test creatives, and scale campaigns based on real-time data.

Amazon DSP offers UK sellers and brands an unprecedented opportunity to extend their reach beyond the Amazon search bar. Whether you’re looking to build brand awareness, retarget non-converting visitors, or drive high-value traffic to your listings, Amazon Display Ads through DSP can unlock significant growth when used strategically.