Introduction
When Amazon first rolled out advertising, the options were limited and straightforward. Sellers relied heavily on Sponsored Products—ads that helped drive traffic directly to product listings. While effective, these ads didn’t provide much in terms of brand building or customer targeting sophistication.
Fast forward to today, and Amazon’s advertising ecosystem has expanded into one of the most powerful digital ad networks in the world. Sponsored Brands and Amazon DSP have transformed the way brands connect with customers, moving beyond keywords into audience-driven strategies.
This post explores the evolution of Sponsored Brands & DSP, highlighting where they started, how they’ve grown, and what sellers can do now to maximize their potential.
Sponsored Brands: From Headline Search Ads to Branding Powerhouses
Early Days: Headline Search Ads
- Introduced as banner-like ads at the top of search results.
- Simple keyword targeting, often underutilized.
- Functioned more as a discovery tool than a conversion driver.
The Transformation into Sponsored Brands
Amazon evolved these into Sponsored Brands, with powerful new features:
- Custom Creatives: Brands can include logos, headlines, and multiple products in a single ad.
- Video Ads: Sponsored Brand Video gives sellers dynamic, scroll-stopping placements.
- Store Spotlight: Driving shoppers to curated Amazon Stores, not just product detail pages.
- Sponsored Brands Metrics: Access to impression share, new-to-brand metrics, and attribution tools.
The Strategic Role Today
Sponsored Brands are no longer just top-of-funnel discovery ads. They now serve as brand builders, helping sellers:
- Increase visibility at the category level.
- Differentiate with storytelling through creatives.
- Drive repeat purchases with brand-recognition strategies.
Amazon DSP: Expanding Beyond Amazon.com
What is DSP?
DSP (Demand-Side Platform) lets advertisers programmatically buy display, video, and audio ads both on Amazon-owned sites and apps (like Amazon.com, IMDB, Fire TV) and across the wider internet.
The Rise of DSP
Amazon launched DSP to compete with platforms like Google Ads and Meta Ads—but with one unique edge: first-party shopping data.
With billions of purchase signals, Amazon DSP provides unmatched targeting power:
- In-market audiences (people actively shopping for products like yours).
- Lifestyle audiences (people showing consistent buying behaviors).
- Remarketing (re-engaging shoppers who viewed but didn’t purchase).
Why DSP Matters for Sellers
- Expanded Reach: Access customers outside of Amazon, on thousands of partner sites.
- Brand Awareness: Build visibility with display and video ads.
- Retention & Loyalty: Retarget customers who already engaged with your brand.
- High-Value Segmentation: Target Prime members, high-spenders, or niche shoppers.
Sponsored Brands vs DSP: Key Differences
| Feature | Sponsored Brands | Amazon DSP |
|---|---|---|
| Placement | Amazon search results & product pages | On & off Amazon (web, apps, Fire TV, etc.) |
| Targeting | Keywords, ASINs, categories | Audience-based (in-market, lifestyle, remarketing) |
| Objective | Brand visibility & conversions on Amazon | Awareness, retargeting, omnichannel reach |
| Creative Options | Logos, headlines, videos, Store spotlight | Display, video, audio, OTT |
| Accessibility | Any seller with a brand registry | Typically larger budgets / agency-managed |
How Sponsored Brands & DSP Work Together
The magic isn’t in choosing one—it’s in combining both.
- Awareness Funnel: DSP builds brand recognition across the web.
- Consideration Funnel: Sponsored Brands capture interest when shoppers search.
- Conversion Funnel: Sponsored Products & retargeting (DSP) close the sale.
This creates a full-funnel advertising strategy that mirrors how customers shop today—researching on multiple platforms before purchasing.
The Future of Sponsored Brands & DSP
Looking forward, Amazon will continue investing in its ad network. Expect to see:
- AI-Powered Optimization: Automated creative testing and bid adjustments.
- Video Everywhere: Short-form video in search results, product pages, and beyond.
- Deeper Attribution: Multi-touch attribution connecting DSP with Sponsored Ads.
- Retail Media Expansion: DSP as a competitor to Google Display Network & Meta Audience Network.
Best Practices for Sellers Today
- Use Sponsored Brands for Storytelling
Highlight your brand, not just your products. Build loyalty through consistent creative messaging. - Adopt Sponsored Brand Video Early
Video ads have some of the highest engagement rates on Amazon. Standing out now means more visibility later. - Leverage DSP for Retargeting
Don’t lose shoppers who click but don’t buy—DSP can bring them back across the web. - Experiment with Full-Funnel Strategy
Combine Sponsored Products, Sponsored Brands, and DSP for holistic coverage. - Measure & Optimize
Amazon Attribution, new-to-brand metrics, and DSP reporting give deeper insights than ever—use them.
Conclusion
Sponsored Brands and DSP represent the next era of Amazon advertising. They’ve grown from simple keyword ads and experimental display placements into a full-funnel ecosystem that rivals Google and Meta.
For sellers, the question isn’t whether to use them—it’s how to integrate them into a growth strategy that balances visibility, efficiency, and brand building.
The sellers who adapt now will be the ones thriving as Amazon ads continue to evolve.
