Amazon DSP in 2025: How to Leverage the Latest Updates for Higher ROAS

Amazon DSP is changing the game for advertisers. If you want higher ROAS in 2025, you need the latest strategies. The platform has evolved, offering more precise targeting, better automation, and new ways to engage shoppers.

Many sellers hesitate to use Amazon DSP because they think it’s expensive or complicated. But the truth is, when used correctly, DSP can deliver an incredible return on investment. The key is understanding the latest updates and applying the right strategies. This guide will walk you through everything you need to know to maximize Amazon DSP in 2025.

Understanding Amazon DSP in 2025

Amazon DSP (Demand-Side Platform) allows advertisers to run programmatic ads on and off Amazon. With real-time bidding, audience insights, and AI-powered targeting, it’s one of the most effective ways to scale your brand.

What’s New in 2025?

Amazon is constantly improving DSP to help advertisers get better results. Here are some of the latest changes:

• AI-Powered Targeting: Amazon’s machine learning algorithms offer even more precise audience segmentation, improving ad relevance and efficiency.
• Expanded External Traffic Integration: DSP now makes it easier to connect with Google, Meta, and TikTok ads, creating a more seamless multi-channel strategy.
• Advanced Video Ad Options: More interactive video formats help drive engagement and conversions, making it easier to captivate potential customers.
• Customizable Lookback Windows: You can now adjust your retargeting window for better control over ad spend, allowing for a more personalized approach.

You’re missing out on a massive opportunity without using DSP. The updates in 2025 make it easier than ever to create profitable campaigns, whether you’re a seasoned advertiser or just getting started.

1. Advanced Targeting: Reaching the Right Audience

Reaching the right customers at the right time is crucial for increasing ROAS. Amazon’s AI-driven targeting has improved significantly, helping you connect more efficiently with high-intent shoppers.

Laser-Focused Targeting: Reach the Right Shoppers at the Right Time

Hitting the perfect audience is the key to higher ROAS. Amazon’s AI-powered DSP targeting lets you connect with buyers when they’re most likely to purchase.

• Discover Lookalike Audiences – Find new customers who resemble your best buyers. Amazon’s algorithm does the heavy lifting to target high-converting shoppers.
• Predict Buying Intent – Amazon’s enhanced analytics pinpoint when customers are ready to buy, so your ads hit at the perfect moment.
• Segment by Shopping Behavior – Target users based on searches, cart activity, and past purchases to refine your ad strategy.

💡 Action Step: Define your ideal customer. What are they searching for? What products do they buy? Use Amazon DSP’s insights to refine your targeting and reach them effectively.

2. Retarget & Win Back Shoppers: Turn Clicks into Conversions

Most shoppers don’t buy on their first visit—but with smarter retargeting, you can bring them back and close the deal.

• Re-Engage Cart Abandoners – Remind customers who added your product to their cart but didn’t check out. A timely nudge can seal the sale.
• Convert Product Viewers – If someone browsed your product but didn’t buy, retarget them with compelling offers or customer reviews.
• Upsell & Reconnect with Past Customers – Offer complementary products or premium upgrades to boost customer lifetime value.

💡 Action Step: Set up a cart-abandonment campaign. Use discounts, social proof, or limited-time deals to encourage customers to complete their purchase.

3. Custom Audiences: The Ultimate Personalization Hack

The more tailored your ads, the higher the engagement. Custom audiences give you the power to craft hyper-relevant campaigns.

• Leverage First-Party Data – Upload your email list to Amazon DSP to target high-intent shoppers.
• Combine Amazon’s Insights with Your Own – Use Amazon’s deep audience data to refine your messaging.
• Segment by Purchase Behavior – Treat one-time buyers differently from loyal customers. Offer first-time discounts and VIP perks for repeat buyers.

💡 Action Step: Analyze past customer data. What are their buying habits? Use that insight to create tailored ad campaigns that feel personal and relevant.

4. External Traffic: The Secret Weapon for Explosive Growth

Amazon rewards sellers who drive traffic from outside sources, helping you boost rankings and conversions.

• Google Ads – Capture high-intent shoppers searching for your product.
• Facebook & Instagram Retargeting – Re-engage users who’ve interacted with your content.
• Email & SMS Marketing – Drive past buyers back to Amazon with personalized offers.

💡 Action Step: Start small. Choose one external traffic source, test it with DSP, and track performance before scaling up.

5. Creative That Captivates: Make Ads That Demand Attention

A great ad isn’t just seen—it makes people stop, look, and buy. In 2025, standing out is everything.

• Use Stunning Images – High-quality, product-focused visuals grab attention instantly.
• Keep Messaging Short & Powerful – Simple, persuasive copy drives more conversions.
• Leverage Video Ads – Engaging video content boosts credibility and trust.

💡 Action Step: A/B test different creatives—images, videos, and copy variations—to discover what resonates most with your audience.

6. A/B Testing: Small Tweaks, Big Wins

Even minor adjustments can lead to major improvements in ad performance.

• Test Different Headlines – Try variations to see what captures the most clicks.
• Experiment with CTAs – “Shop Now” vs. “Get Yours Today” – which one drives more action?
• Compare Ad Placements – Optimize visibility by testing different Amazon-owned sites.

💡 Action Step: Keep testing. Even small refinements can lead to a big boost in ROAS.

7. Data-Driven Decisions: Track, Analyze & Optimize

Numbers don’t lie—tracking the right metrics ensures you’re making profitable choices.

• ROAS (Return on Ad Spend) – Your ultimate measure of success.
• CTR (Click-Through Rate) – Higher CTR means your ads are relevant and engaging.
• ACoS (Advertising Cost of Sales) – Manage costs efficiently while driving profit.

💡 Action Step: Review your DSP campaign metrics weekly. Identify what’s working and adjust your strategy for maximum results.

Conclusion

Amazon DSP is more powerful than ever. By using advanced targeting, retargeting, external traffic, and creative optimization, you can maximize ROAS and achieve sustainable growth.

Now is the time to take action. Review your current ad strategy and apply these DSP tactics. Want to see accurate results? Start testing today and watch your ROAS climb!