More advertisers are turning to Amazon’s ad tech as their mainstay for programmatic buying — not just for Amazon’s own media properties, but increasingly for ads across the wider web too.
The reason, according to vp of Amazon Ads Kelly MacLean, is simple: “They’re now using Amazon DSP as their primary DSP.”
While there’s no hard data to back up this claim, it aligns with a growing body of anecdotal evidence over the past year. Once seen as an instrument for pushing product listings, Amazon’s DSP has evolved into a versatile ad buying platform, vying for market share against heavyweights like Google’s DV360 and The Trade Desk.
As Stephen Tyler Reagan, president and chief strategy officer at MindgruveMacarta, explained: “Amazon is stealing budget share from Google and The Trade Desk due to their comparative CPMs, specifically for their standard audiences and remarketing audiences (which range from $2.50 to $4).”
Despite this progress, Amazon’s DSP isn’t yet the dominant force in programmatic advertising. Conversations with ad buyers over the last three months reveal that Amazon is still seen as a challenger rather than a frontrunner — at least for now. The consensus? It won’t stay that way for long.
The question isn’t if Amazon will challenge the largest DSPs — it’s when, said Nich Weinheimer, evp of strategy at retail media ad tech vendor Skai.
“If Amazon DSP can keep growing the money spent on its own and operated [inventory] as well as through Performance+ and Brand+ then by the end of 2026, it will either be the market leader or a bigger rival to the incumbents,” Weinheimer continued.
The long game: Reframing Amazon’s DSP
Unsurprisingly, Amazon has big ambitions for its DSP. “Eventually, we want it to be the largest AI-driven buying platform for all digital marketers,” said MacLean.
To get there, Amazon knew it had to make changes — and it has. Over the past three years, the company has transformed its DSP from a clunky conversion workhouse into a streamlined, full-funnel marketing platform. Key upgrades like the integration of the Amazon Marketing Cloud and Publisher Cloud now give marketers richer cross-channel data, while tools like Performance+ and Brand+ deliver sharper optimization and creative options.
Ad buyers call it faster, smoother and significantly more user-friendly. Add to that the DSP’s tantalizingly low 1% take rate for programmatic, guaranteed deals — a stark contrast to Google’s, as highlighted in the recent antitrust case.
“All the changes have brought the DSP to a point where it bridges the gap between ad dollars and sales outcomes,” said Jared Belsky, co-founder and CEO of Acadia. “The retail media component is something other DSPs will struggle to replicate.”
Betting on behavior, not cookies
With the third-party cookie chaos, Amazon has sidestepped the scramble for new identifiers. Instead, it’s leveraging its deeper understanding of shopper behavior, blending deterministic data (based on observed user behavior) and probabilistic insights (modeled predictions) to power campaigns.
“Too many marketers had become overly reliant on the false precision of cookies, while others were scrambling to find the next big identifier,” said MacLean. “We wanted to take a different approach. We’re focusing on real-time signals rooted in our expertise with shopping journeys.”
For those already using Amazon DSP, the result of these changes speak for themselves: sharper targeting and measurable outcomes. But for Amazon to fully realize those ambitions for its DSP, it must convince advertisers outside its ecosystem — those not already selling on Amazon — to buy in.
Eyes on the open web
The real opportunity for Amazon lies beyond its own walls. Prime Video ads have added some diversity to its client base, but the DSP’s future hinges on establishing a stronger foothold across the open web — a move critical to attracting advertisers who don’t rely on Amazon as a retail channel. That’s why one of the most significant yet understated aspects of Amazon’s DSP overhaul has been its ongoing efforts to establish proprietary pathways to supply.
“We’ve made significant investments in our supply desk internally, where we wanted to make sure that we’re making it easy to transition dual libraries and to create custom deals for marketers and agencies to get access to any type of supply that they would want,” said MacLean.
This isn’t entirely new territory for Amazon’s DSP — marketers have been buying display ads outside the retailer’s ecosystem for years. But now, this aspect of Amazon’s pitch feels sharper, more intentional. The company is doubling down, essentially telling marketers: advertise wherever you like — just let us handle it for you.
“This is really helping marketers access a broader audience across the web in a cross channel way,” said MacLean. “They don’t necessarily need to work with multiple providers to reach all of the best publishers, including Prime Video across the internet.”
While the upgrades have made running display ads better, the results still lag behind its bread-and-butter: product listing ads. Contextual signals could be the link that closes that gap, according to those executives who’ve discussed the strategy with Amazon leaders like Chris Conetta, head of supply and buyer services for Amazon Ads.
“Amazon can’t take the search model, which is the source of the intent signals that power its advertising, off site,” said an ad exec, who exchanged anonymity for candor on these plans. “So they’re working with ad tech partners to help build something that can help them figure out what that intent looks like off-site.”
Future state
Retail media has been drifting toward adland for years, but Amazon’s DSP might be the bridge that finally connects the two. Its unmatched first-party data, seamless integration with Amazon’s ecosystem, dominance in streaming and growing appeal to non-endemic advertisers make it a formidable player.
Ad buyers are taking note. More marketers are rethinking their budgets, blending brand and performance campaigns, and adapting to a landscape where retail media isn’t just another channel — its becoming the backbone of modern advertising.
Amazon, with its scale and influence, is uniquely positioned to capitalize on this shift faster than its rivals. Its DSP, while still moving, is already hard to ignore.
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