Did you know that incorporating Amazon DSP into your full-funnel marketing strategy can significantly improve how you reach shoppers at every stage of their buying journey?
Many Amazon sellers rely on PPC campaigns because they’re easy to manage. But those ads typically target shoppers already close to buying.
What about the people who don’t even know your brand yet? That’s where a full-funnel strategy comes in; it helps move shoppers from awareness to conversion, and Amazon DSP is a key tool for making that happen.
By showing up with the right message at the right time, you can build brand awareness, earn trust, and ultimately drive more sales. In this guide, our Amazon agency will show how a full-funnel approach works and how Amazon DSP supports each stage of the customer journey.
Table of Contents
What Is a Full-Funnel Marketing Strategy?
For Amazon sellers, a full-funnel marketing strategy is about showing up at all the stages of the buyer’s journey, from the first time a shopper hears about your brand to the moment they hit “Buy Now” and beyond. Rather than focusing only on immediate sales, this approach addresses awareness, engagement, and conversion holistically.
Understanding the Funnel Stages
There are four main stages in a full-funnel advertising strategy. Each one plays a key role in how shoppers discover, evaluate, and eventually buy from your brand.
Top of Funnel (Awareness)
This is where shoppers first come across your brand, often without any prior knowledge. The goal is to build visibility and start planting the seed of interest.
Middle of Funnel (Consideration)
At this stage, shoppers know who you are and are actively weighing their options. Your job is to give them a reason to trust your brand over the others they’re comparing.
Bottom of Funnel (Conversion)
Shoppers here are ready to buy but need that final push. Clear offers, strong social proof, and a seamless buying experience help seal the deal.
Post-Purchase (Loyalty & Retention)
Once a shopper buys, your work isn’t done. Keep them coming back with great service, follow-ups, and personalized offers that make them feel valued.
Why Full-Funnel Marketing Matters for Amazon Sellers
The Amazon marketplace is crowded. If you only focus on bottom-of-funnel advertising, you’re competing at the most expensive and competitive stage.
Full-funnel marketing helps you:
- Reach new customers earlier in their journey
- Nurture interest and stand out from competitors
- Maximize conversion rates through retargeting
- Build brand loyalty for long-term growth
- Use customer behavior data to fine-tune campaigns
What Is Amazon DSP?
Amazon DSP (Demand-Side Platform) is a programmatic advertising tool that lets sellers run display and video ads using Amazon’s shopper data. Unlike PPC ads, which target search terms, DSP focuses on audiences based on their browsing, purchase history, and behavior.
This makes it ideal for reaching potential customers at all stages of the funnel, even if they’re not actively searching. You can target lifestyle segments, in-market shoppers, ASIN viewers, or users browsing similar products in real time.
DSP campaigns appear both on Amazon and across the web, including sites like Twitch and IMDb. While it’s not self-service for most sellers, you can access DSP through Amazon’s managed service, tech partners, or specialized agencies.
Types of Amazon DSP Ads
Amazon DSP supports a range of ad formats to reach customers at each stage of the funnel:
- Display Ads: Static or animated visuals shown on Amazon and third-party sites, ideal for retargeting.
- Video Ads: Run across Fire TV, Twitch, and IMDb to drive awareness and engagement.
- Audio Ads: Played on Alexa-enabled devices and Amazon Music for passive brand exposure.
- OTT Ads: Non-skippable streaming video ads on Fire TV; great for high-impact storytelling.
- Mobile Ads: Includes banner and interstitial ads in apps to maintain visibility on mobile.
How Amazon DSP Supports a Full-Funnel Marketing Strategy
A full-funnel marketing strategy ensures your brand shows up at every stage of the buyer’s journey, while Amazon DSP gives you the tools to reach highly targeted audiences based on real shopping behavior. When used together, they create a powerful system for guiding shoppers from awareness to conversion and repeat purchases.
By incorporating Amazon DSP into your marketing funnel, you can deliver the right message to the right audience at the right time, whether they’re just discovering your brand or ready to buy. This approach not only improves targeting efficiency but also helps maximize the impact of your ad spend across the entire funnel.
Top of Funnel
At the awareness stage, the goal is to introduce your brand to potential customers who haven’t encountered it yet. Amazon DSP helps by targeting broad audience segments using demographic data, lifestyle behaviors, and interests.
You can run display and video ads across Amazon-owned platforms as well as external sites. This is especially effective when launching new products or building brand recognition in categories where buyers aren’t actively searching yet.
Middle of Funnel
At this stage, customers are exploring their options, so the goal is to stay visible and build trust. Amazon DSP supports this by retargeting users who’ve visited your listings, viewed competitor products, or browsed related categories.
You can serve ads across Amazon and third-party sites to remind shoppers of your brand while they’re still researching. This consistent presence keeps you top of mind and helps guide them closer to a purchase.
Bottom of Funnel
At the conversion stage, the focus shifts to turning interest into action. Amazon DSP helps by targeting shoppers who have shown strong buying signals, like viewing your product detail page or adding items to their cart.
You can run dynamic retargeting ads that feature the exact products they interacted with, making it easy for them to pick up where they left off. DSP can also support cross-selling and re-engagement with past buyers, helping to drive more sales and repeat purchases.
Post-Purchase
After a customer buys from you, the goal is to strengthen the relationship and encourage continued engagement. Amazon DSP allows you to show follow-up ads featuring related or complementary products from your catalog.
You can also retarget past buyers to promote repeat purchases or introduce new product launches they might be interested in. With proper audience exclusions, you can avoid showing ads for items they’ve just bought, keeping your campaigns relevant and efficient.
Benefits of Using Amazon DSP in a Full-Funnel Marketing Strategy
Amazon DSP enables you to engage customers across the funnel, from brand discovery to repeat purchases. It gives you more control, deeper targeting, and wider reach compared to other Amazon ads.
- Access to Amazon’s First-Party Data
Tap into Amazon’s exclusive data to reach customers based on real browsing and purchase behavior. This allows for precise targeting by interest, intent, and even life stage.
- High-Intent Audience Targeting
Use in-market and lifestyle segments to connect with people who are actively researching or ready to buy. You can also target competitor audiences or those browsing your category.
- Ad Formats Built for the Full Funnel
Run video ads to generate awareness, static display ads to drive consideration, and dynamic creatives for purchase retargeting. Each format fits a specific stage of the customer journey.
- Powerful Retargeting Options
Re-engage users who viewed your product, explored similar listings, or added items to their cart but didn’t check out. This keeps your product in front of them as they make decisions.
- Boost Customer Retention and Repeat Purchases
Use post-purchase campaigns to cross-sell other items or promote reorders. This builds loyalty and increases your customers’ lifetime value.
- Expand Beyond Amazon.com
DSP allows you to run ads across Amazon’s owned platforms and third-party websites and apps. You’re not limited to Amazon search traffic.
- Performance and Brand Goals in One Platform
Whether you’re looking to grow brand awareness or drive measurable conversions, DSP supports both, giving you flexibility to balance long-term and short-term goals.
- Advanced Optimization and Reporting
Track performance across funnel stages and make data-driven adjustments to audiences, bids, and creatives. DSP gives you more visibility and control than standard Sponsored Ads.
- Open to Non-Sellers
Even if you don’t sell on Amazon, you can still use DSP to run campaigns. This makes it a strong tool for brand manufacturers, service providers, and others outside the marketplace.
10 Best Practices in Using Amazon DSP for Full-Funnel Marketing
To maximize the effectiveness of Amazon DSP, it’s important to tailor your approach to all of the stages of the customer journey, from awareness to post-purchase. Below are the best practices to ensure your advertising campaigns are optimized for success:
1. Start with Retargeting
Focus on people who have already shown interest in your products, whether by visiting your product page or adding an item to their cart. Retargeting helps convert interested users into buyers.
2. Set Specific Goals for Each Funnel Stage
Different stages of the customer journey require different goals. For example:
- Awareness: Aim for broad reach and brand visibility.
- Consideration: Focus on driving clicks and interactions.
- Conversion: Track sales and Return on Ad Spend.
Having clear goals helps you fine-tune your strategy.
3. Use the Right Ad Formats
Each funnel stage benefits from different types of ads:
- Top of Funnel: Use video ads to engage potential customers and introduce your brand.
- Middle of Funnel: Use static ads to reach shoppers exploring alternatives or showing interest in your product category.
- Bottom of Funnel: Use retargeting ads (such as display or video ads) to re-engage users who’ve interacted with your product but haven’t yet purchased. These ads remind them of your product and encourage them to complete the purchase.
4. Craft Tailored Creatives
Your ad messaging should reflect where your customer is in their journey:
- For new customers, highlight your brand and unique value.
- For those considering your product, focus on benefits and features.
- For those close to purchasing, provide clear calls to action or incentives to finalize the sale.
5. Use Amazon's Data
Amazon DSP gives you access to powerful insights about buyer behavior, interests, and purchase history. Use this data to target the right customers and make your ads more relevant.
6. Expand Your Reach Beyond Amazon
DSP doesn’t just show ads on Amazon, it extends to other marketing channels like Fire TV, mobile apps, and third-party websites. Use these options to stay visible to your target audience across multiple touchpoints.
7. Test, Test, Test
Don’t settle for the first version of your campaign; perform A/B testing and experiment with different ad creatives, audience segments, and placements to see what works best. Regularly analyze your performance data and adjust your strategy accordingly.
8. Exclude Recent Buyers
If a customer has recently bought your product, avoid showing them the same ads. Instead, target them with complementary products, cross-selling offers, or options like Subscribe & Save.
9. Target Competitor Audiences and Categories
During the consideration phase, show ads to shoppers browsing similar products or competitor items. This keeps your brand top-of-mind as they weigh their options.
10. Integrate DSP with Your Overall Marketing Plan
DSP works best when it’s part of your bigger strategy. Ensure that your campaigns align with your Amazon PPC efforts, organic rankings, and any external marketing activities you’re running.
FAQs About Amazon DSP & Full-Funnel Marketing
Improve Your Full-Funnel Marketing Strategy with Amazon DSP
Amazon DSP offers sellers the tools to run full-funnel campaigns that build awareness, drive consideration, and convert high-intent shoppers. When used strategically, it allows brands to connect with audiences both on and off Amazon through targeted, data-backed advertising.
To succeed, sellers must define clear goals, tailor messaging to the customer journey, and continuously optimize based on performance data. With the right approach, Amazon DSP can support long-term brand growth while delivering measurable results at every stage of the funnel.
If you’re ready to move beyond basic PPC and want expert help setting up a full-funnel strategy using DSP, contact our full-service Amazon agency today. We’ll guide you through campaign setup, targeting, and optimization to help you scale profitably.
