Is Amazon Set to Dominate the Programmatic Advertising Space with Its DSP? Here's What You Need to Know!

More advertisers are now turning to Amazon’s ad tech as their primary resource for programmatic buying — not just for Amazon’s media properties, but increasingly for ads across the wider web too.

According to Kelly MacLean, VP of Amazon Ads, this shift is driven by a simple reason: "They’re now using Amazon DSP as their primary DSP." Although there isn’t hard data to back this claim, anecdotal evidence over the past year suggests that Amazon’s DSP has evolved from a tool for pushing product listings into a versatile ad buying platform, competing with major players like Google’s DV360 and The Trade Desk.

Stephen Tyler Reagan, president and chief strategy officer at MindgruveMacarta, noted that Amazon is stealing budget share from its competitors due to their competitive CPMs for standard and remarketing audiences, which range from $2.50 to $4.

Despite this progress, Amazon’s DSP is not yet the leading force in programmatic advertising. Conversations with ad buyers indicate that it is still perceived as a challenger, but many believe that this will change soon. Kevin Weiss, VP of Retail Media at Skai, stated, "If Amazon DSP can keep growing... by the end of 2026, it will either be the market leader or a bigger rival to the incumbents."

The Long Game: Reframing Amazon’s DSP

Amazon has ambitious plans for its DSP. As Kelly MacLean mentioned, "Eventually, we want it to be the largest AI-driven buying platform for all digital marketers." Over the last three years, Amazon has transformed its DSP from a basic conversion tool into a full-funnel marketing platform. Key upgrades, such as the integration of the Amazon Marketing Cloud and Publisher Cloud, provide marketers with richer cross-channel data, while tools like Performance+ and Brand+ offer improved optimization and creative options.

Ad buyers have found the platform to be faster, smoother, and more user-friendly, with a 1% take rate for programmatic guaranteed deals, a stark contrast to Google’s fees.

Betting on Behavior, Not Cookies

In the wake of third-party cookie changes, Amazon has avoided the scramble for new identifiers by leveraging its understanding of shopper behavior. They blend deterministic data (based on observed user behavior) and probabilistic insights (modeled predictions) for campaign power.

MacLean stated, “We’re focusing on real-time signals rooted in our expertise with shopping journeys.” For those utilizing Amazon DSP, this has resulted in sharper targeting and measurable outcomes. However, for Amazon to achieve its DSP ambitions, it needs to attract advertisers who are outside its ecosystem.

Eyes on the Open Web

The true opportunity for Amazon lies beyond its own platform. While Prime Video ads have diversified its client base, the DSP’s future depends on establishing a stronger presence across the open web. Amazon has made substantial investments in its supply desk, aiming to simplify the transition for marketers and agencies to create custom deals for any type of supply they desire.

Future State

Retail media has been integrating with advertising for years, but Amazon’s DSP may be the connection that finally bridges the two. Its unmatched first-party data, seamless integration, dominance in streaming, and appeal to non-endemic advertisers position it as a formidable player. More marketers are now rethinking their budgets to blend brand and performance campaigns, recognizing that retail media is becoming the backbone of modern advertising. Amazon is uniquely positioned to capitalize on this shift faster than its competitors, making its DSP hard to ignore.