Faced with tariff spending fears, brands look to Amazon’s search ads and DSP

As marketers eye performance levers and lower-funnel investment, ad spending on Amazon is rising further.

Apr 21, 2025 - 05:02
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Faced with tariff spending fears, brands look to Amazon’s search ads and DSP

When times get tough, some advertisers look to performance channels to see them through.

As advertisers get buffeted by tariff-induced uncertainty and a precipitous drop in consumer confidence, Amazon appears to be emerging as an early beneficiary. U.S. brands have accelerated their ongoing adoption of its DSP, while also increasing investment in its search inventory, as fears of a recession mount in the world’s largest advertising market.

According to Pacvue data shared with Digiday, average daily spending by brands on Amazon’s Sponsored Brands and Sponsored Products ads rose 9% year-on-year in first quarter 2025. That’s despite the typical decrease following the holiday season in the prior fourth quarter, suggesting current demand among advertisers is higher than market norms.

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