Amazon Sponsored Display vs. DSP: Which One Drives More Conversions?

Brands are always in search of advertising tools that provide greater control, scale, and return in the rapidly evolving arena of e-commerce marketing. Today, the flagship of such an approach is advertising on Amazon, which provides two core tools: Sponsored Display and Demand-Side Platform (DSP). Although both are powerful, there are large variations in their design, targeting, and conversion ability.

There is no straightforward method of figuring out which one drives more conversions. It largely varies depending on the goals of your campaign, budget, and type of exposure your product requires.

What is Sponsored Display?

The advertising on Amazon console offers Sponsored Display, an auto-optimised ad solution, as a self-service advertisement. It allows brands to leverage auto-optimised ads to reach customers off and on Amazon.

It is particularly useful for vendors and sellers who would like to reconnect with audiences who have shown some interest in their products or something related. Sponsored Display reaches audiences based on what they buy, look at, and even purchase related products.

For newbies at advertising on Amazon, Sponsored Display is an easy and convenient choice with fewer creative requirements and a faster setup.

What is Amazon DSP?

Amazon DSP is a programmatic ad platform that enables advertisers to purchase display, video, and audio ads on and off Amazon. While Sponsored Display offers limited targeting in terms of audience segmentation, contextual targeting, and lookalike modelling, DSP enables more advanced targeting.

Through DSP, brands are exposed to Amazon's whole universe and can reach audiences on third-party websites, apps, and Amazon-owned properties like IMDb and Fire TV. This, however, is at a higher entry point, typically with a minimum spend or through use of an Amazon-managed service or agency partner.

For bigger, established brands with bigger budgets, DSP allows for granular control of campaigns and is best suited for larger brand awareness and high-intent retargeting.

Conversion Potential: A Comparative Perspective

For outright conversions, Sponsored Display generally fares well when addressing lower-funnel audiences—those near the brink of purchasing. Since it supports product-targeting and view-based retargeting, it effectively pushes shoppers back to the purchase decision phase.

DSP, however, excels at multi-stage funnel marketing. Though it might not always register immediate conversions, it establishes brand visibility and long-term customer interaction. Its lookback windows and behaviour-based targeting add to high-quality leads that could convert after some time, particularly in longer buying cycles.

So, though Sponsored Display might generate faster conversions, DSP will often generate more strategic, high-value conversions when compared over the long haul.

Targeting Capabilities

Sponsored Display provides basic targeting by audiences (interest, views, purchases) and product targeting (ASINs and categories). It doesn't provide much else in the way of flexibility, though.

DSP provides a lot of options. Advertisers can create customised audiences, make use of third-party data segments, and tap into lookalike modelling. This higher-level targeting, plus access to inventory outside Amazon's native platform, really opens up reach.

But with complexity comes accountability—DSP demands greater planning, greater knowledge of programmatic advertising, and ongoing optimisation to deliver at its best.

Creative Control and Reporting

One of the most important differences is creative flexibility. Sponsored Display employs auto-created creatives with limited customisation. This is adequate for brands with limited resources or those desiring rapid campaign launches.

DSP provides total creative freedom. Advertisers can create banners, videos, and even interactive formats according to brand standards. This makes it more attractive to brands that spend a lot on top-quality marketing material.

Reporting-wise, Sponsored Display provides fundamental metrics such as impressions, clicks, and sales. DSP provides more detailed reporting, such as view-through attribution and audience segmentation performance, which is more useful for making long-term campaign strategy decisions.

Cost and Accessibility

Sponsored Display is cost-effective and doesn't require a minimum spend, which makes it viable for emerging brands and e-commerce marketing newbies.

DSP is more complex to learn and more resource-heavy. The access cost—either directly with Amazon or through an agency partner—may be out of reach for newer or smaller brands.

With that being said, the more advanced reach and deeper targeting are worth it for brands looking for growth at scale.

Paxcom: Uncomplicating the Data Behind the Strategy

With this landscape of constantly changing advertising tools, knowing your performance metrics makes all the difference in decision-making. Paxcom gives brands an advantage by incorporating digital shelf analytics into their ad strategies.

Their own technology, Kinator, gives companies real-time insights into product performance, price trends, content compliance, and competitor activity. This allows businesses to make data-driven decisions, particularly about selecting between Sponsored Display and DSP campaigns.

By layering analytics with actionable insights, Paxcom helps brands determine which platform delivers better ROI for their specific goals. Whether you’re managing retargeting via Sponsored Display or planning high-level audience campaigns via DSP, having a data-backed foundation is key, and this is where Paxcom becomes instrumental.

Conclusion

So, which generates more conversions—Amazon Sponsored Display or DSP? The answer depends on the goals of your campaigns. Sponsored Display is great for fast, low-cost conversions and works well for lower-funnel shoppers. DSP is more suitable for advanced, long-term plans with wider reach and more control over targeting and creatives.

For many brands, a hybrid strategy usually best serves—applying Sponsored Display for retargeting and tactical promotions, and DSP for awareness and strategic brand building.

Ultimately, conversion success is not so much about the platform as about how well you harmonise it with your brand strategy, budget, and audience behaviour. With appropriate tools, insights, and expertise, both Sponsored Display and DSP can produce impactful results in your e-commerce marketing efforts.

Disclaimer: This content is sponsored and does not reflect the views or opinions of Ground Report. No journalist is involved in creating sponsored material and it does not imply any endorsement by the editorial team. Ground Report Digital LLP. takes no responsibility for the content that appears in sponsored articles and the consequences thereof, directly, indirectly or in any manner. Viewer discretion is advised.

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