When it comes to the digital world, every click and impression matters, and thus, retargeting has become a critical strategy for increasing conversions and maximizing return on ad spend (ROAS). One of the most powerful platforms for executing retargeting campaigns is Amazon DSP (Demand-Side Platform). Leveraging Amazon's vast shopper data and advertising ecosystem, Amazon DSP allows advertisers to reach high-intent audiences both on and off Amazon with unparalleled precision.
In this comprehensive guide, we will explore how Amazon DSP retargeting ads work, different types of retargeting available, best practices, and how advertisers can use them to drive sales, brand visibility, and customer retention.
What is Amazon DSP: A Brief
Amazon DSP is a Demand-Side Platform that allows advertisers to programmatically buy display, video, and audio ads to reach Amazon shoppers across Amazon-owned sites ( IMDb and others), Amazon devices, and several other third-party websites and mobile apps.
Moreover, unlike Sponsored Products or Sponsored Brands, Amazon DSP isn't limited to keyword targeting within the Amazon marketplace. It provides a deeper understanding of audience targeting based on Amazon's first-party data, including browsing behavior, purchase history and other demographics.
Also Check: Amazon DSP vs Amazon Sponsored Display Ads
What is Amazon DSP Retargeting?
Also known as remarketing, it is a form of online advertising that targets consumers who have previously interacted with your brand but didn't complete a desired action, such as adding to cart or making a purchase. With Amazon DSP, advertisers can retarget users who:
Added your products to the cart, but didn't check out
Viewed your product detail pages, but didn't buy
Searched for relevant keywords or viewed similar products
Purchased from you previously (for upsell or cross-sell opportunities)
Amazon DSP retargeting allows you to stay top of mind with these high-intent audiences by showing them relevant ads wherever they go online, not just within Amazon's ecosystem.
Amazon Marketing Cloud Audiences
A variety of retargeting campaign types are supported by Amazon DSP to meet various advertising objectives. However, Amazon Marketing Cloud audiences are taking the retargeting game to a whole new level.
Retargeting customers based on their interactions within Amazon's ecosystem is an option that Amazon offers by default. These usually consist of:
Target customers who have seen your products but haven't made a purchase.
Reach customers who put your product in their cart but did not finish the transaction.
Connect with customers who have looked at items similar to yours.
High-intent shoppers who have previously shown interest in similar product or categories from different brand, encouraging them to consider your brand instead.
Use Case: Bringing users further down the funnel and recovering lost sales.
Learn the Benefits of Amazon DSP Retargeting
1. Access to First-Party Amazon Data
Your retargeting efforts will be far more accurate with Amazon DSP since it provides you with access to Amazon's exclusive, first-party shopper data, such as browsing and purchase history, unlike third-party ad networks.
2. Cross-Platform Reach
Amazon DSP ads aren't limited to Amazon-owned sites. They appear across thousands of third-party sites and apps, allowing you to follow users throughout their digital journey.
3. Better ROAS
With refined targeting and high-quality traffic, Amazon DSP retargeting campaigns typically generate better ROAS than social media retargeting for traditional display.
4. High Intent Audiences
Remember, Amazon customers already have a buying mindset. Retargeting them with personalized ads has a much higher likelihood of conversion.
5. Custom Creative Options
Custom creative formats are supported by Amazon DSP, such as dynamic product advertising that dynamically pulls in data from your product catalogue, video ads, and responsive e-commerce creatives.
How to Set Up a Retargeting Campaign on Amazon DSP?
Here's a step-by-step process to set up a retargeting campaign on Amazon DSP:
Step 1: Define Your Audience
Select which type of audience you want to retarget, whether it's viewers of a specific ASIN, abandoned cart, or past purchasers. You can also pick audiences based on demographics or shopping behaviors.
Step 2: Choose Ad Format & Inventory
Select from display, audio, and video ads. Then select where you want your ads to appear: Amazon-owned properties, third-party websites, apps, or on multiple platforms.
Step 3: Set Bidding Strategy and Budget
Amazon DSP uses cost-per-thousand impressions (CPM) bidding. Set your maximum bid, daily and total budget, and flight dates.
Step 4: Create or Upload Creatives
You can utilize Amazon's e-commerce creatives (which pull from your product detail pages), upload your own custom creatives (banners), or create dynamic ads with multiple products.
Step 5: Launch and Optimize
Once your campaign is live, monitor the performance metrics frequently, such as impressions, click-through rate (CTR), ROAS, and detail page view rate. Leverage this data to adjust budgets, bids, and targeting. You can create a free Amazon DSP account at Hector, a self-serve platform. Take complete control of your Amazon DSP campaigns and scale your ads.
Best Practices for Amazon DSP Retargeting Ads
1. Segment Your Audiences
Avoid piling up all the visitors into one audience segment. Create segments by user behavior (e.g., cart abandoners vs. product viewers) and retarget with customized messaging.
2. Use Dynamic Ads
Dynamic ads, if updated automatically with relevant products, tend to perform better, especially when retargeting shoppers who previously browsed those specific items.
3. Time Your Campaigns Wisely
Set time windows for retargeting to avoid ad fatigue. For instance, retarget within 7 days for cart abandoners and 14-30 days for product viewers.
4. Optimize Creatives for Conversions
Use high-quality product images, clear CTAs (such as Shop Now, Buy Today, Grab Now), and reviews or ratings to build trust and encourage action.
5. Leverage Frequency Caps
To reduce or prevent overexposure, limit the number of times the same users see your ad. This maintains a strong presence without becoming obtrusive.
6. Test and Modify
Run A/B tests with different creatives, audiences, and bidding strategies. Continuously optimize based on performance data. Leverage Hector's unified dashboard and get the campaign insights at a granular level. Study the data and adjust your campaigns accordingly.
7. Use AMC to Improve Retargeting Precision
Leverage Amazon Marketing Cloud (AMC) to build custom retargeting audiences based on detailed shopper journeys, like multi-ASIN views or added to cart but not purchased.
Final Thoughts
Amazon DSP retargeting ads represent a significant advancement in how brands can re-engage high-intent shoppers with precision and scale. Whether you are a brand looking to nurture long-term customer loyalty, recover abandoned carts, or cross-sell related products, retargeting through Amazon DSP can be one of your most effective tools.
The key to success lies in strategic audience segmentation, creative personalization, and continuous optiomization. Get started with Hector today and leverage the advanced features built for performance. From rule-based automation to granular dayparting, each feature gives a push to retargeting Amazon DSP ads, making your brand reach a whole new level.