Amazon DSP + DTC: A Strategy That Works Together

Brands running both Amazon and direct-to-consumer channels often worry about cannibalization. Here's why that fear is misplaced — and how the two can fuel each other's growth.

If your brand sells on Amazon and runs a direct-to-consumer site, you've probably asked the question: are these two channels fighting over the same customers? The short answer is no — but only if you're using them correctly. Amazon DSP offsite advertising is built to do something your DTC marketing fundamentally cannot, and understanding that difference is the key to unlocking compounding, cross-channel growth.

01  |  Your DTC Marketing Has a Blind Spot

Your current DTC channels — paid social, Google Ads, email — are excellent at one thing: capturing demand that already exists. They reach people who are already aware of your brand, already searching for your category, or already in your CRM.

That's valuable. But it has a ceiling.

Amazon DSP works with something your DTC stack simply doesn't have access to: Amazon's first-party shopper behavior data. This means you can reach people based on what they actually buy and browse, not just what they click on or what demographic bucket they fall into.

With Amazon DSP, you can target shoppers who browsed your competitor's listings, re-engage visitors who viewed your products but didn't convert, and exclude your existing customers entirely, so every dollar targets someone new.

 

02  |  Growing the Pie, Not Splitting It

The cannibalization fear assumes a fixed pool of customers. Amazon DSP expands that pool.

•       DTC channels = capture existing demand (people already looking for you or your category)

•       Amazon DSP = creates and expands demand by reaching new, high-intent shoppers

By targeting competitor shoppers, in-market category browsers, and lookalike audiences built from real purchase data, Amazon DSP introduces your brand to people who are close to buying — just not yet from you. That's net-new reach, not overlap.

03  |  Where These Ads Actually Appear

Amazon DSP offsite ads don't appear on Amazon's search results pages. They run across a premium network of third-party sites and apps where your target customers already spend time:

•       Prime Video, Streaming TV, Fire TV & Twitch

•       Premium publisher websites (news, entertainment, lifestyle)

•       Mobile apps

This is an important distinction. Amazon DSP is not Google Display. It's not paid social. It uses Amazon's behavioral data to place ads strategically — the targeting intelligence is Amazon's, but the placement is across the open web.

04  |  Targeting That Goes Deeper Than DTC Can

Traditional DTC targeting typically relies on interest categories, demographics, and website retargeting. These are proxies for purchase intent — educated guesses about who might buy.

Amazon DSP targeting is grounded in what people actually do:

•       Actual purchase history

•       Product-level browsing data, including competitor pages

•       Shopping frequency and recency signals

The result is reaching people who are much closer to a purchase decision than anything your DTC channels can identify on their own.

05  |  Built-In Guardrails for Your Existing Customer Base

Concerned about overlap anyway? Amazon DSP gives you the controls to eliminate it. You can exclude current customers, suppress specific websites or apps, and cap frequency so you're not overexposing anyone already in your orbit.

The goal of DSP offsite is incremental growth — new customers, new touchpoints. These controls ensure your budget stays focused on exactly that.

06  |  The Halo Effect: Awareness That Lifts Every Channel

Perhaps the most underappreciated benefit of Amazon DSP is what it does at the top of the funnel. Upper-funnel awareness campaigns — using custom creative across streaming and premium publishers — build brand familiarity with audiences who've never encountered you before.

Someone discovers your brand through a DSP ad on a streaming platform. They don't act immediately. A week later, they search for you on Google and buy through your DTC site. Amazon DSP gets no last-click credit for that conversion — but it absolutely drove it.

This halo effect means Amazon DSP investment lifts performance across your entire ecosystem — Amazon search, DTC, and beyond — in ways that traditional attribution models often fail to capture.

The Bottom Line

Amazon DSP offsite advertising doesn't compete with your DTC efforts — it fills the gaps your DTC stack can't reach. New customers, sharper targeting, and brand awareness that compounds across every channel you run.

Brands that treat Amazon and DTC as complementary — not competing — are the ones that grow faster and more efficiently over time.

Ready to build a smarter Amazon strategy? Contact The Starren Group to get started.

Next
Next

Automating Your Amazon Business Is No Longer Optional