Amazon DSP Expands To Third Party Audiences

By Tinuiti Team

BREAKING NEWS: In December 2020, Amazon introduced a new third-party audience feature to the audiences tab within DSP.

Here’s a closer look at the recent announcement and how we expect it will impact advertisers throughout the remainder of the year and into 2021.

Advertisers now have access to thousands of third-party audiences from dozens of branded data providers in Amazon DSP.

Prior to the launch, Amazon and third-party audience data (operating independently) made audience discovery and media planning somewhat difficult for advertisers and sellers. Luckily, now Amazon, advertiser, and third-party audiences can now be found all in one location – a big win for sellers!

Here’s what our experts have to say:

“With the launch of third-party audiences in Amazon, we now have the ability to increase potential reach while remaining hyper-targeted. Running 1P and 3P audiences in tandem will allow for more visibility & optimization toward what audiences perform best at scale which in turn will help drive overall performance.”

Natalie Samson, Programmatic Strategist Lead at Tinuiti

“The release of third-party audiences is a large step forward for advertisers utilizing Amazon DSP. While most audience targeting to date has revolved around shoppers already on Amazon, this new release gives advertisers the opportunity to move strategy from demand capture to demand generation.”

Evan Walsh, Sr. Programmatic Analyst, Amazon Marketplaces at Tinuiti

What is Amazon Demand Side Platform (DSP)?

With over five million marketplace sellers across Amazon, it’s becoming more and more difficult for brands to stand out — even as today’s consumers shop online more every day. If you’re not re-engaging your potential customers, your competitors will be.

The good news? Advertising to the audiences available within the Amazon Demand-Side Platform (DSP) can help increase your brand awareness both on and off Amazon. Through Amazon’s DSP, you can keep your brand messaging consistent with a full-funnel strategy.

In our recent Amazon DSP guide, we cover:


Using DSP to discover audiences (include your competitors!)

Earlier this year, Amazon DSP introduced its Audience Builder, a self-service to create custom and competitor audiences based on past customer interactions with different brands, searches, and your pages.

You can use the Audience Builder on Amazon DSP to create retargeting audiences based on shoppers’ interactions with different brands, products, and searches. Using ASIN data, Amazon retargets your campaigns to the customers that are most likely to purchase your products.

Competitor targeting through Amazon DSP can also be a great addition to your Amazon Advertising strategy. Using Amazon DSP, Tinuiti was able to boost Noble House Home Furnishings new to brand purchases by 84%.


Case Study: Noble House Scales DSP Strategy to Increase Total Percentage of Purchases New to Brand to 84%

This was largely in part because Amazon has seemingly endless data about shopper preferences and behavior; now, anyone can leverage that first-party data to get their products and store in front of the audience most likely to buy.

This strategy means that your market segments are no longer a “black box” — you can control the inputs into the segments and know exactly what you’re basing your targeting on.


amazon dsp funnel


You can also keep your brand and products top-of-mind while consumers look at products related to yours. In turn, this can increase conversions for your products. Done right, competitor targeting gives you the chance to gain market share from competitors.

Competitor retargeting has limited scalability and is not dynamic; make sure you have other Amazon ad programs going at the same time.

Click here to learn more about leveraging Amazon DSP and Ad Console as part of your integrated marketing strategy.

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