Marketing | Amazon

How to Increase Conversions with Amazon DSP

By Abhinav Tiwari
Mar 04, 2025 | 5 Minutes | |

Amazon DSP (Demand-Side Platform) has become a go-to tool for brands looking to reach customers both on and off Amazon. With its ability to programmatically deliver display, video, and audio ads, DSP gives advertisers access to Amazon's powerful shopper data, allowing them to target audiences with precision.

But here is the challenge: visibility alone is not enough. Running DSP campaigns can generate impressions and clicks, but if those do not convert into sales, your investment falls short. To get the best return on ad spend, you need strategies that are focused specifically on increasing conversions.

In this guide, we will explore how to turn your Amazon DSP campaigns into conversion machines — helping you move beyond awareness and engagement to drive actual purchases.

Why Conversions Matter in Amazon DSP

Conversions are the actions you ultimately want from shoppers — whether that is a sale, a sign-up, or an add-to-cart. For most brands on Amazon, conversions mean purchases.

  • Better ROI: High conversions directly improve return on ad spend (ROAS).
  • Customer growth: Each conversion adds to your customer base.
  • Brand trust: Shoppers who convert are more likely to become repeat buyers.
  • Competitive edge: Efficient campaigns allow you to outpace competitors without simply increasing ad spend.

Optimizing for conversions ensures your DSP campaigns achieve more than just exposure.

Key Strategies to Increase Conversions with Amazon DSP

1. Define Conversion Goals Clearly

Before you optimize, you need clarity on what “conversion” means for your campaign. Is it a purchase? An add-to-cart? A product detail page view?

For example:

  • If your goal is sales, measure purchases and revenue.
  • If your goal is consideration, measure add-to-cart events or detail page views.

Clear goals keep your optimization focused.

2. Target High-Intent Audiences

Amazon DSP’s biggest strength is its audience data. To increase conversions, focus on shoppers who are closer to making a purchase.

  • In-market audiences: People currently browsing or researching products in your category.
  • Remarketing audiences: Shoppers who viewed your product detail pages but did not buy.
  • Cart abandoners: Visitors who placed items in their cart but left without purchasing.
  • Lookalike audiences: Shoppers similar to your existing customers.

These segments have higher intent, meaning your ads are more likely to convert.

3. Optimize Creatives for Action

Great targeting means little if your creatives do not inspire action. To boost conversions:

  • Show clear product images with accurate details.
  • Include persuasive copy such as “Shop Now,” “Limited Offer,” or “Best-Seller.”
  • Highlight trust factors like ratings, reviews, or “Amazon Choice” badges.
  • Use video ads to demonstrate product features and benefits.

Shoppers need to understand not just what your product is, but why they should buy it now.

4. Use Frequency Capping to Avoid Fatigue

Seeing the same ad too often can reduce conversions. Amazon DSP allows you to set frequency caps to control how many times a shopper sees your ad.

  • For remarketing campaigns, keep the cap lower (2–3 impressions per week).
  • For awareness campaigns, use a higher cap to build familiarity.

Balanced frequency ensures your ads stay effective without annoying potential customers.

5. Retarget Warm Audiences

Retargeting is one of the most powerful conversion drivers in Amazon DSP. These are people who have already interacted with your brand and just need a little push.

Retargeting strategies include:

  • Reminding shoppers who viewed product pages but did not purchase.
  • Showing ads to cart abandoners with urgency-based messaging.
  • Cross-selling or upselling complementary products to recent buyers.

For example, if someone bought a coffee maker, retarget them with ads for premium coffee beans.

6. Optimize Landing Experiences

Conversions do not happen in the ad — they happen after the click. If your product detail page is not optimized, even the best DSP campaigns will underperform.

Make sure your Amazon product pages are:

  • Optimized with relevant keywords for search visibility.
  • Filled with high-quality images and videos.
  • Supported by strong bullet points and detailed descriptions.
  • Backed by positive reviews and ratings.

A seamless shopping experience turns clicks into purchases.

7. Adjust Bidding Strategies

Since DSP uses a CPM (cost per thousand impressions) model, bidding plays a role in conversions. Smart bidding ensures your ads reach the right shoppers at the right time.

  • Increase bids for audiences with strong conversion history.
  • Lower bids on audiences with weak engagement.
  • Test dynamic bidding to let Amazon adjust based on likelihood of conversion.

Bid optimization aligns spend with performance.

8. Monitor Placement Performance

DSP ads appear across Amazon-owned sites (like IMDb, Fire TV, and Amazon.com) and third-party publishers. Not all placements convert equally.

  • Regularly review placement reports.
  • Shift budget to sites and apps that drive conversions.
  • Exclude placements with low ROI.

Focusing on high-performing placements increases efficiency.

9. Test and Refresh Creatives

Even strong creatives lose impact over time. To maintain conversions, refresh ads regularly.

  • Test new imagery, messaging, and formats.
  • Use seasonal promotions and time-limited offers.
  • Rotate creatives to avoid fatigue.

A/B testing helps you identify which combinations generate the highest conversion rates.

10. Use Data to Refine Strategy

Amazon DSP provides detailed reporting on audience performance, creative engagement, and conversions. Regularly analyze this data to:

  • Identify top-performing audiences.
  • Pinpoint weak spots in creatives.
  • Reallocate budget to what is working.

AI-powered analytics tools can speed up this process by automatically surfacing insights and recommendations.

Example: Driving Conversions for a Skincare Brand

Imagine you run a skincare brand on Amazon.

  1. Goal: Increase sales of a new organic moisturizer.
  2. Targeting: Start with in-market audiences browsing skincare, then retarget product page viewers.
  3. Creative: Use video ads showing before-and-after results, with copy that highlights “dermatologist-tested” and “limited-time discount.”
  4. Frequency capping: Limit retargeting ads to three impressions per week to avoid fatigue.
  5. Landing page optimization: Product detail page includes clear images, reviews, and FAQs about ingredients.
  6. Bidding strategy: Increase bids for remarketing audiences that show higher conversion rates.
  7. Placement refinement: Allocate more spend to Amazon-owned placements, which deliver stronger results.

Result: Conversions increase as shoppers move seamlessly from awareness to purchase.

Common Mistakes to Avoid

  1. Targeting too broadly: General audiences may bring clicks but not conversions.
  2. Poor product pages: Ads drive traffic, but weak landing pages prevent purchases.
  3. Ad fatigue: Reusing the same creative for too long lowers effectiveness.
  4. Ignoring remarketing: Failing to retarget interested shoppers wastes opportunities.
  5. Neglecting data: Not reviewing performance reports leads to stagnant campaigns.

How AI Can Boost Conversions in Amazon DSP

Artificial Intelligence enhances every stage of DSP optimization:

  • Audience insights: AI analyzes large datasets to identify high-intent shoppers.
  • Creative analysis: AI tools predict which creatives will perform best.
  • Bid automation: AI adjusts bids in real time to maximize conversion likelihood.
  • Performance monitoring: AI highlights trends and anomalies quickly, saving time.

By combining AI speed and insights with your brand strategy, you can steadily improve conversions.

Final Thoughts

Amazon DSP is more than just an awareness tool. With the right strategies, it can be one of the most effective ways to increase conversions.

By focusing on high-intent audiences, retargeting warm leads, optimizing creatives and product pages, refining bidding, and continuously analyzing performance, you can move beyond impressions and clicks to drive real sales.

AI makes this process even more powerful, helping you identify the best opportunities and automate decisions for faster results.

The key is consistency. Optimizing for conversions is not a one-time task — it is an ongoing process of testing, learning, and refining. If you commit to it, Amazon DSP can deliver conversions that grow your revenue and strengthen your brand in one of the most competitive marketplaces in the world.

Authors

Abhinav Tiwari

Sr. Director - Media
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