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Amazon DSP in 2025: Smarter Targeting, Bigger Returns

  • Writer: Fifth Shelf
    Fifth Shelf
  • Apr 17
  • 2 min read

Learn how Amazon DSP is evolving in 2025 to help brands unlock more efficient targeting, reduce wasted spend, and scale results across the full funnel.


Amazon DSP advertising interface on a digital screen

As programmatic advertising matures, Amazon DSP is becoming a cornerstone of scalable growth for modern brands. In 2025, it’s no longer just about retargeting—Amazon has introduced powerful new features for precision targeting, real-time optimization, and deeper integration with upper funnel campaigns.


Key Takeaway


Amazon DSP is no longer just a remarketing tool—it's a full-funnel growth engine. Brands in 2025 are using AI-driven optimization, AMC integration, and new targeting controls to drive measurable lift across awareness, conversion, and retention campaigns.


What’s New in Amazon DSP for 2025

  • Retail-Aware Targeting Expansion: Advertisers can now dynamically adjust bids based on inventory levels and pricing competitiveness.

  • AI-Powered Creative Optimization: Amazon DSP now uses generative AI to test creative elements in real time, improving CTR and ROAS automatically.

  • Audience Forecasting Tools: Brands can simulate reach before launching campaigns to avoid audience overlap and waste.

  • **Amazon Marketing Cloud (AMC) Integration: Unlock even deeper insights by pairing DSP with custom queries from AMC, enhancing attribution and path-to-purchase clarity.¹


Case Study: How One Brand Scaled Fast with Fifth Shelf + DSP

A leading wellness brand partnered with Fifth Shelf in Q1 2025 to overhaul their DSP strategy. By layering AMC insights with upper funnel video and mid-funnel display retargeting, the brand saw:²

  • 36% lift in total conversions

  • 51% lower cost-per-acquisition on Subscribe & Save campaigns

  • 4.2x return on ad spend (ROAS) within 60 days


Fifth Shelf’s Role in Scaling Smarter DSP Campaigns

Fifth Shelf isn’t just another agency—we’re an Amazon Ads Verified Partner, and we’ve helped brands manage thousands of SKUs through:

  • Full Funnel Strategy: We design awareness-to-conversion pipelines using DSP + Sponsored Ads + AMC.

  • Budget Efficiency: Smarter segmentation and lookback windows reduce waste and boost ROAS.

  • Creative Testing: Our design team runs multivariate ad tests to identify winning creative fast.


We also provide complementary services like Amazon PPC management, ecommerce CRO, and 1P strategy consulting.



References

¹. Amazon Ads Blog – DSP Updates 2025: https://advertising.amazon.com/blog/2025-dsp-evolution². Fifth Shelf Case Data, Internal Reporting Q1 2025


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