Brands Turn to Amazon Search Ads and DSP Amid Tariff Spending Concerns

As companies face economic uncertainty due to tariffs and declining consumer confidence, many advertisers are turning to Amazon for support.

According to data from Pacvue, brands are increasing their daily spending on Amazon’s Sponsored Brands and Sponsored Products ads, as well as its DSP. This increase in investment is a response to fears of a recession, with daily spending on Amazon’s DSP rising by 25.4% compared to the previous year.

Experts believe that Amazon’s e-commerce data and performance tools make it an attractive choice for brands looking to drive growth and maximize their return on ad spend. The popularity of Amazon Prime Video’s ad space is also drawing in advertisers, with spending on Prime Video ads rising by 29% in just one quarter.

Indie media agency Tinuiti reports that the DSP accounts for 34% of Amazon investment among its clients. More brands are recognizing the value of investing in Amazon’s DSP and search ads, with spending on these platforms increasing year-on-year.

Amazon has been actively courting advertisers by offering financial incentives and expanding its inventory through publishing partnerships. This strategy has been successful in capturing a larger share of digital advertising spend, with the top 10 companies accounting for four-fifths of all U.S. advertising revenue in 2024.

As companies navigate tariff uncertainties and potential budget cuts, lower-funnel channels like Amazon’s search ads are becoming more attractive. Advertisers are focusing on performance-based platforms that offer strong ROI, making Amazon’s advertising business well-positioned for growth.

The rise in search spending on Amazon reflects advertisers’ concerns about tariffs and the need to maintain visibility and engagement with consumers. Despite this, Amazon’s DSP continues to be a top choice for brand marketers looking to drive efficient growth and connect with their target audiences.