You’ve set up your Amazon store, you’ve listed your products, and now you’re ready to invest in advertising. But here’s the catch — should you use Amazon PPC or Amazon DSP?
If you’re unsure about which platform delivers better conversions or fits your brand’s current stage, you’re not alone. At Digital Rhetoric, we’ve worked with countless Amazon sellers facing this exact question. This guide will help you make a smarter, more profitable decision.
Before: Confusion Around Amazon Ads
Most sellers assume that running ads on Amazon is a one-size-fits-all solution. But Amazon actually offers two powerful, yet very different advertising platforms — PPC (Pay-Per-Click) and DSP (Demand Side Platform).
Each comes with its own targeting methods, ad placements, and cost structures. And each is designed to solve different marketing goals.
Not knowing the difference between PPC and DSP can lead to wasted ad spend or missed growth opportunities.
After: Clear Understanding of PPC vs. DSP
Let’s break down how both platforms work — and when to use each.
What is Amazon PPC?
- Also known as: Sponsored Ads
- How it works: You bid on keywords or products. Your ads show up in Amazon search results or product pages.
- Cost: You pay only when someone clicks on your ad.
PPC Ad Types:
- Sponsored Products – most popular and effective for conversions
- Sponsored Brands – top-of-page banner ads that increase brand visibility
- Sponsored Display – remarketing ads within Amazon
Best for: Driving traffic and sales on Amazon. Perfect for sellers who want fast, ROI-focused performance.
Keyword: Amazon PPC
What is Amazon DSP?
- Also known as: Programmatic Display Ads
- How it works: Uses Amazon’s audience data to target shoppers both on and off Amazon.
- Cost: You pay per 1,000 impressions (CPM), not per click.
DSP Ad Formats:
- Display ads – appear on Amazon, third-party websites, and mobile apps
- Video ads – including Amazon Fire TV and Twitch
- Retargeting ads – shown to users who visited your listing but didn’t convert
Best for: Full-funnel marketing, brand awareness, and retargeting.
Keyword: Amazon DSP
Key Differences at a Glance
| Feature | Amazon PPC | Amazon DSP |
| Targeting Method | Keywords, ASINs | Audience behavior, demographics |
| Ad Placement | Within Amazon only | On and off Amazon |
| Cost Model | Pay-per-click (CPC) | Cost-per-thousand impressions (CPM) |
| Minimum Budget | Low | High (usually $10K+) |
| Goal | Immediate sales | Retargeting & brand-building |
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Bridge: Which Strategy Delivers Better Conversions?
Let’s answer the question you came here for: which performs better?
✅ Choose PPC If:
- You have a limited budget
- You want quick results
- You’re launching a new product
- You want to rank higher on Amazon search results
Why it works:
PPC ads appear where buyers are already searching. It’s ideal for driving conversions at the bottom of the funnel.
✅ Choose DSP If:
- You want to reach customers outside of Amazon
- You’re focused on brand awareness and customer retention
- You have a bigger budget and a long-term growth mindset
Why it works:
DSP gives you access to rich behavioral data from Amazon, allowing you to retarget and re-engage more precisely.
Stat: Brands using DSP for retargeting have seen up to a 20% increase in conversion rates within 60 days.
Bonus: Combine Both for Full-Funnel Impact
Top-performing brands don’t choose one over the other — they combine PPC and DSP for full-funnel dominance:
- PPC for new customer acquisition
- DSP for retargeting, loyalty, and brand recall
Keyword: best ad strategy for Amazon 2025
How Digital Rhetoric Can Help
As a seasoned Amazon advertising agency, Digital Rhetoric offers full-service solutions for:
- Amazon PPC campaign setup & optimization
- DSP audience strategy & execution
- A/B testing, reporting, and ad creative
- Multi-channel brand performance analysis
We blend creative thinking with performance data to deliver results across every stage of the customer journey.
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Final Thoughts
There’s no one-size-fits-all approach when it comes to Amazon ads. The key is knowing when and how to use PPC or DSP — and how to make them work together.
Want better conversions, smarter targeting, and more ROI from your Amazon ads?
📩 Let’s build your Amazon ad performance strategy — digitalrhetoric.in
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Frequently Asked Questions
1. What is the main difference between Amazon PPC and DSP?
Amazon PPC is keyword-based advertising within Amazon, where you pay per click. DSP uses audience behavior to run CPM-based ads on and off Amazon.
2. Which is better for conversions: Amazon PPC or DSP?
Amazon PPC usually delivers faster conversions, especially for new products. DSP excels at retargeting and brand-building over time.
3. Can small businesses use Amazon DSP?
DSP typically requires a higher minimum budget (around $10K+), making it less accessible for small businesses compared to PPC.
4. Is it effective to use both Amazon PPC and DSP together?
Yes. Combining PPC and DSP provides full-funnel coverage—PPC for immediate sales and DSP for retargeting and long-term brand growth.
5. How can Digital Rhetoric help with Amazon advertising?
Digital Rhetoric offers tailored Amazon PPC and DSP solutions, including campaign setup, targeting strategies, creative design, and performance analysis.
