Why doesn't Amazon DSP work for every business?

Amazon DSP in Montreal

Amazon Demand-Side Platform (DSP) is one of Amazon's most powerful tools for programmatic advertising. Used by many companies to manage their advertising campaigns and reach specific audiences, Amazon DSP is a lever of choice for boosting product visibility and generating conversions. However, this tool does not work optimally for all companies. There are many reasons for this, often depending on the size of the company, its objectives, its marketing strategy and the way it uses the platform.

In this article, we'll explore why Amazon DSP may not be the ideal solution for some businesses, while highlighting its latest developments, particularly in terms of contextual targeting (Keyword Targeting) and other important features in 2025. We'll also look at how companies like Les Pitchous, which specialize in optimizing DSP campaigns, can help brands maximize their performance on Amazon.

1. What is Amazon DSP and why is it a powerful tool?

Amazon DSP is a programmatic advertising platform that enables advertisers to buy advertising inventory on Amazon and its partner sites. The platform offers advanced targeting options by leveraging Amazon's user data, as well as integration with the product catalog.

1.1. The benefits of Amazon DSP

  • Access to a massive audience (500 million potential customers)
  • Precise targeting based on buying behavior, intentions and demographics
  • Diversified advertising formats: display banners, videos, audio ads, etc.
  • Automatic campaign optimization using powerful algorithms
  • New contextual keyword targeting in 2025

2. Why doesn't Amazon DSP work for every company?

2.1. High budget and complex management

One of the main obstacles to adopting Amazon DSP for some companies is the budget required. Unlike tools such as Amazon PPC (Pay-Per-Click), Amazon DSP requires greater investment in terms of cost-per-impression (CPM) and campaign management. Small businesses or those with limited marketing budgets may find it difficult to recoup their investment.

2.2. Targeting problems for certain niches

Although the platform offers powerful targeting tools, certain niches or companies with very specific products may find it difficult to reach a qualified audience. If little data exists on potential buyers, Amazon DSP's algorithms will struggle to optimize the campaign effectively.

2.3 Increased competition

Competition on Amazon DSP is increasingly fierce, making it difficult for some companies to stand out from the crowd. Big brands, with dedicated budgets and teams, can capture the majority of ad impressions, making it harder for smaller companies to access key audiences.

2.4. Marketing strategy not aligned with DSP functionalities

Some companies, particularly those whose business model relies on short-term campaigns or low-margin products, may find that Amazon DSP is not aligned with their objectives. DSP is designed to maximize visibility and conversions over the long term, which may not suit all strategies.

3. What's new in 2025: Keyword Targeting and more

In 2025, Amazon DSP introduced several new features to improve campaign effectiveness. Contextual targeting, in particular Keyword Targeting, is now one of the platform's most powerful tools.

3.1 Contextual targeting based on keywords

Keyword Target ing enables advertisers to serve ads based on search terms entered by users on Amazon. This feature enables businesses to target customers with a clear intent to buy, thus improving conversion rates.

3.2 Audience and contextual targeting

The latest updates enable more precise targeting by combining behavioral data with searched keywords, improving ad relevance.

4. Les Pitchous : Support to maximize performance on Amazon DSP

At Les Pitchous, we offer services for brands wishing to accelerate their growth on Amazon.

4.1 Expertise in DSP campaign management

We have a team of Amazon consultants on hand to create and optimize DSP campaigns, using advanced tools to analyze performance in real time.

4.2 Optimizing targeting and budgets

Thanks to our expertise, we help brands define realistic budgets, maximize ROI and adjust bids for more effective targeting.

5. Amazon Marketing Cloud: additional leverage to optimize Amazon DSP

Companies with media budgets over $15,000 per month can leverageAmazon Marketing Cloud (AMC) to refine their advertising strategies on Amazon DSP. AMC is an advanced analytics platform that enables advertisers to mine granular data and gain detailed insights into consumers' buying journeys.

5.1. Benefits of Amazon Marketing Cloud

  • In-depth analysis of DSP performance: Identification of the most profitable audience segments.
  • Media mix optimization: Understand how different contact points (PPC, DSP, organic) interact.
  • Improved targeting: use of first-party data to create ultra-targeted audiences.
  • Transparent ROI measurement: allocate sales to different advertising channels for more informed decision-making.

5.2 Integrating AMC into a DSP strategy

Advertisers using Amazon DSP with AMC can fine-tune their campaigns using cross-referenced data from the entire Amazon ecosystem. This enables them to improve their bidding strategy, optimize their advertising budget and maximize their return on investment.

6. Conclusion

Amazon DSP is a powerful tool, but it's not for every business. However, by working with experts like Les Pitchous, brands can maximize their potential and fully exploit the platform's advanced features.

FAQ 

1. Why shouldn't my company use Amazon DSP?

If your company has a limited budget, short-term objectives, or a niche market, Amazon DSP may not be suitable.

2. Is Amazon DSP only for large companies?

No, but larger companies often have more resources to optimize their campaigns.

3. What is Keyword Targeting on Amazon DSP?

Keyword Targeting enables users to be targeted according to the keywords they search for on Amazon, improving the relevance of ads.

4. How can Les Pitchous help my brand with Amazon DSP?

Pitchous helps companies configure and optimize their DSP campaigns, and provides detailed reports.

5. What are the costs associated with Amazon DSP?

Costs vary according to targeting, campaign duration and objectives. Amazon DSP requires a higher budget than traditional PPC campaigns.