Amazon Ads rolls out new features. Get insights into the full-funnel marketing capabilities within Amazon DSP

Amazon is now one of the most powerful ad platforms globally. What started as a way to promote products in search results is now a full-scale media ecosystem, and with the latest update to Amazon DSP, that transformation just accelerated.

Amazon Ads has rolled out new features and full-funnel capabilities that go far beyond retail. This means brands can now run awareness, consideration, and conversion campaigns using Amazon’s rich first-party data across Amazon-owned properties and the wider web.

Why does this matter?

Because it changes how marketers can plan and execute campaigns. It’s no longer just about catching shoppers when they’re ready to buy. It’s about reaching them before they even start searching and staying with them through every step of their journey.

Let’s unpack what these updates mean, how the new DSP features work, and how your brand can turn this into a competitive edge in 2025.

What Are Amazon Ads and the Amazon DSP?

Let’s start with the basics.

Amazon Ads is the umbrella for all the advertising solutions Amazon offers. This includes:

Sponsored Products – Ads that show up in shopping results.
Sponsored Brands – Branded placements that drive awareness.
Sponsored Display – These are Display Ads across the Amazon platform and partner sites.
And most powerfully, Amazon DSP.

Amazon DSP (Demand-Side Platform) is Amazon’s programmatic advertising tool. It allows brands to buy display, video, and audio ads—not just on Amazon, but across the open web, including apps, streaming platforms, and third-party websites.

The real value? Amazon’s first-party data. DSP campaigns are powered by real shopping behavior—what users browse, add to cart, and actually buy. That means smarter targeting, more relevant messaging, and better results.

If you want to reach audiences beyond the search bar, while still tapping into Amazon’s insights, DSP is the key.

What’s New in Amazon DSP?

Amazon just gave its DSP a serious upgrade, turning it from a mid marketing funnel retargeting tool into a full-funnel ad solution. These updates are designed to give brands more reach, more control, and more insight.

Here’s what’s new:

1. Advanced Audience Targeting

Amazon is expanding its predictive audience capabilities, helping you reach people before they even start shopping. These are modeled audiences based on real Amazon behaviors like browsing patterns, purchase history, and device usage.

2. New Ad Formats

Amazon DSP now supports:

Streaming TV (OTT) ads for top-of-funnel awareness
Interactive video ads for higher engagement
Audio ads for reaching users through Alexa-enabled and music-streaming devices

These formats help brands run storytelling campaigns, not just conversion pushes.

3. Better Retargeting and Cross-Device Reach

You can now retarget users across desktop, mobile, Fire TV, and more with Amazon’s identity graph, ensuring you’re hitting the same person, not just the same cookie.

4. Amazon Marketing Cloud (AMC) Integration

Seamlessly integrated with Amazon Marketing Cloud, you can now:

Analyse cross-channel paths to purchase
See which ad types drive actual revenue
Understand how different funnel stages interact

5. Expanded Inventory Access

Your ads can now appear across Amazon properties (like IMDb, Twitch) and trusted third-party sites, giving your brand visibility beyond the typical shopping environment.

These Amazon Ads new features aren’t just about new toys, they’re about giving brands real control over how, where, and when they connect with customers. It’s a shift from isolated ad pushes to orchestrated, data-driven campaigns across the entire buyer journey.

Understanding Full-Funnel Capabilities in Amazon DSP

Amazon DSP used to be seen as a lower-funnel tool, mostly for retargeting shoppers who didn’t convert. That’s changed. With its latest updates, Amazon DSP now supports full-funnel strategies, from first touch to final purchase, and beyond.

Here’s how it works across the marketing funnel:

Top of Funnel: Awareness

Run video ads, streaming TV (OTT), and display campaigns to introduce your brand to new audiences. You can target based on lifestyle, in-market signals, and Amazon’s deep behavioral insights, even off-Amazon. This is mainly about creating brand recognition, not just clicks.

Middle of Funnel: Consideration

Use mid-funnel formats to educate and influence shoppers who may not be ready to convert, but are getting there. Think:

Product feature videos
Comparison creatives
Display ads with social proof or reviews

Amazon’s data helps you segment these users precisely, so you’re not guessing who’s considering your category.

Bottom of Funnel: Conversion

This is where traditional Amazon DSP has been strong. Now it’s smarter. You can:

Retarget cart abandoners
Nudge repeat visitors
Trigger dynamic creative based on exact shopping behavior

These campaigns drive measurable performance and sales, both on Amazon and on your own site.

Post-Purchase: Loyalty & Upsell

Amazon DSP can now be used to re-engage past buyers with complementary products or subscription offers. It’s not just about acquisition anymore, it’s about lifecycle marketing.

Why It Matters?

Having all of this under one platform means you can create consistent, personalised brand experiences across the full customer journey. And with Amazon’s rich first-party data, your targeting stays relevant at every stage.

This isn’t just evolution, it’s a full funnel marketing revolution, built for performance and scale.

Why This Update Matters to Advertisers?

Amazon’s DSP upgrade isn’t just a platform enhancement, it’s a shift in how brands can plan, run, and optimise digital campaigns.

Here’s why this matters right now:

1. You’re No Longer Limited to Shoppers at Checkout

Before, Amazon Ads were mostly about catching people with high intent. Now, you can reach users before they even start searching, when they’re discovering, comparing, or just exploring. That’s a huge expansion of your brand reach.

2. Amazon’s First-Party Data Just Got More Powerful

In a world where third-party cookies are disappearing, Amazon’s logged-in, purchase-driven data is gold. These updates give you more refined access to behavior-based segments, helping you target smarter, not louder.

3. Campaigns Can Finally Be Connected

Instead of running awareness, consideration, and conversion ads on different platforms, you can now run and measure them all inside Amazon DSP. That means more consistent messaging, less platform hopping, and better attribution.

4. You Gain More Insight, Not Just More Impressions

With Amazon Marketing Cloud (AMC) integration, you’re not just doing the guesswork. You can:

See which ad types actually drive results
Understand the role each channel plays in the journey
Optimise based on real data, not assumptions

5. Competitive Advantage for Early Movers

These capabilities are still underused by most advertisers. Brands that adapt early will get better ROI, sharper targeting, and stronger customer relationships while everyone else plays catch-up.

Bottom line: This isn’t about Amazon selling more ads, it’s about giving you a full-funnel engine that’s driven by unmatched customer insight.

How Can Brands Leverage These New Capabilities?

These Amazon DSP updates aren’t plug-and-play features, they’re tools. And like any tool, how well you use it determines the value you get.

Here’s how brands that stay ahead of the curve can make the most of these capabilities:

1. Audit Your Current Marketing Funnel

Start by asking: Where are you active, and where are you silent?

Many brands invest heavily at the bottom of the funnel but neglect the awareness or consideration stages. With Amazon DSP’s full-funnel reach, now’s the time to fill those gaps with tailored content and targeting.

2. Align Creative with Funnel Stages

Use Amazon’s ad formats deliberately:

Video or OTT for upper-funnel brand storytelling
Display or native for product education and trust-building
Dynamic creatives for lower-funnel retargeting and conversion

You just need to give the correct message, in the correct format, at the correct time.

3. Tap Into Amazon’s Predictive Targeting

Leverage new audience modeling features to get ahead of demand. Target people who haven’t searched for your product yet but are likely to soon, based on behavioral patterns Amazon tracks behind the scenes.

4. Use AMC for Smarter Optimisation

Amazon Marketing Cloud gives you custom, event-level reporting. Use it to:

Understand cross-device behavior
Pinpoint underperforming stages
Refine attribution beyond last-click

No more “what worked?” guesswork.

5. Test Fast. Iterate Faster.

This is still new territory for many advertisers. Treat it like a live lab:

Run small-scale tests across the funnel
Compare performance between formats and audiences
Use real data to scale only what’s working

The brands that win here won’t be the ones spending the most, but the ones building intentional, data-backed funnels that speak to the customer at every stage.

What Does This Mean for Your Amazon Ad Strategy in 2025?

With these changes, Amazon is making a clear play: It wants to be your full-stack media solution. The brands that win will be the ones who stop treating Amazon like a checkout lane and start treating it like a full-blown media channel.

Looking to Master Amazon DSP? Let’s Build the Funnel Together

We help brands go beyond just bidding on products. With a deep understanding of Amazon’s evolving ad ecosystem, Lyxel&Flamingo delivers tailored full-funnel strategies—combining data, creative, and platform expertise to scale what works.

In search of an Amazon marketing agency? Reach out to us!

Let’s talk Amazon Ads: From campaign architecture to AMC analysis, we’ll help you make the most of every feature Amazon just launched.