Amazon Sponsored Display remains a cornerstone of the PPC landscape, yet recent updates have rapidly integrated DSP-inspired features, such as behavior-based targeting and automated optimization. This shift creates unprecedented opportunities for Korean brands that previously found the high minimum monthly spend of Amazon DSP to be a significant barrier to entry. By maintaining the traditional SP, SB, and SD structure while harnessing Sponsored Display’s expanded capabilities, brands can develop more sophisticated overseas marketing strategies to effectively capture the mid-funnel in the competitive U.S. market.
For years, Amazon advertising has centered around three primary formats: Sponsored Products (SP), Sponsored Brands (SB), and Sponsored Display (SD). This tripartite structure remains essential in 2025, serving as the fundamental driver for revenue generation and brand visibility. For Korean brands targeting the U.S. market, this framework continues to provide a stable and reliable launchpad for early-stage performance.
However, Amazon has been consistently broadening the scope of Sponsored Display. No longer merely a retargeting tool, SD is becoming increasingly sophisticated. This evolution complements and strengthens the existing PPC structure rather than replacing it. In essence, Sponsored Display now preserves its original utility while incorporating high-level features that were once the exclusive domain of Amazon DSP.
This strategic shift creates meaningful leverage for Korean brands entering the U.S., particularly those operating with refined advertising budgets. As an Amazon marketing agency deeply embedded in global execution, DISRUPT observes these changes firsthand and synthesizes them into advanced strategic planning.
The Narrowing Gap Between DSP and PPC Roles
While Amazon DSP and PPC still serve distinct roles, Sponsored Display is effectively blurring the boundaries. Amazon DSP is inherently optimized for upper-funnel objectives like brand awareness and broad reach, utilizing intricate behavioral signals to acquire new customers across various inventories.
Nevertheless, DSP presents formidable hurdles, as it typically requires a high minimum monthly spend and involves a complex management structure that takes time to stabilize. These factors often make DSP inaccessible for Korean brands with limited resources or those in the nascent stages of U.S. expansion.
In contrast, Sponsored Display functions within the accessible PPC ecosystem but has adopted several of DSP’s core strengths through recent enhancements. Rather than acting as a total replacement, SD serves as a practical gateway, allowing brands to implement “DSP-style logic” before committing to full-scale DSP budgets.
Key Upgrades Transforming Sponsored Display
1. Enhanced Behavior-Based Targeting
Sponsored Display has evolved far beyond simple product detail page (PDP) retargeting. It now empowers advertisers to strategically engage shoppers who have visited competitor product pages or those who consistently browse within specific categories. Furthermore, it allows for the targeting of cart abandoners and broader interest-based segments. These sophisticated capabilities, which were once exclusive to DSP, now enable highly precise mid-funnel targeting directly within the SD interface.
2. Automated and Dynamic Optimization
As of 2025, Sponsored Display features robust automation tools designed to maximize efficiency. The system can now automatically prioritize customers with a higher likelihood of conversion and make dynamic delivery adjustments to optimize budget allocation. Additionally, it offers audience expansion features and automatic targeting recommendations. This reflects the machine-learning-driven approach of DSP, providing a significant advantage to smaller teams and allowing Korean brands to rapidly adapt to the fast-paced U.S. market dynamics.
3. Strategic Synergy with AMC (Amazon Marketing Cloud)
Although AMC is a server-based analytics platform not directly integrated into the SD campaign manager, it significantly elevates SD strategy. AMC provides deep insights into the customer journey, revealing which ad combinations influence pre-purchase behavior and identifying the optimal frequency of exposure required for conversion. By analyzing the characteristics of audiences who repeatedly engage with a brand, advertisers can utilize these insights to architect more effective Sponsored Display campaigns, even if the audiences are not directly synced.
Why This Evolution Matters For Korean Brands
1. Eliminating Financial Barriers to Sophisticated Targeting
While DSP delivers powerful results, its financial requirements often stifle the growth of smaller brands. Sponsored Display, however, allows brands to execute behavioral targeting without restrictive budget floors, making it a high-impact, low-risk first step for brands focused on efficient global scaling.
2. Dominating the Mid-Funnel in the U.S. Market
In the saturated U.S. advertising landscape, search ads alone are no longer sufficient for sustainable customer acquisition. Sponsored Display bridges the critical gap between initial awareness and final conversion, capturing high-intent audiences that Sponsored Products and Sponsored Brands cannot reach in isolation.
3. A Reinforced and Holistic PPC Ecosystem
The evolution of Sponsored Display does not obviate the need for SP or SB; rather, it creates a more cohesive funnel. While Sponsored Products drive bottom-funnel conversions and Sponsored Brands bolster brand equity, Sponsored Display intercepts behavioral audiences in the mid-funnel. Together, these tools form a comprehensive and resilient advertising ecosystem.
Amazon advertising is transforming from a performance-centric model into a full-funnel, journey-based ecosystem. While Sponsored Display remains a PPC format, its DSP-like enhancements make it an indispensable tool for Korean brands seeking to scale effectively in the U.S. For those not yet ready for the heavy investment of DSP, adopting a DSP-style methodology through Sponsored Display is the most pragmatic and potent approach. As a seasoned Amazon marketing agency, DISRUPT integrates these cutting-edge developments into strategies that ensure sustainable global growth for our partners.
