HomeNewsAmazon Opens Its Advertising Doors to Rival Retailers

Amazon Opens Its Advertising Doors to Rival Retailers

Amazon is now giving big retailers access to Amazon Advertising to serve sponsored ads on their sites.

Amazon, the third largest digital advertising network, after Alphabet and Meta, is rolling out its advertising platform to other retailers – a development that could revolutionize retail media.

Amazon’s new Retail Ad Service lets US retailers use Amazon’s advanced targeting and measurement solutions on their own sites, which is another way that Amazon is monetizing its internal technology, much like AWS and Buy with Prime.

Specifications: With the service, sellers can:

  • Offer context-sensitive ads in search results and on product pages.
  • Design, place and time ad.
  • Login to Amazon’s ad measurement and reporting platform.
  • Admin data with dedicated AWS accounts.

Early adopters include:

  • iHerb (health and wellness)
  • Weee! (Asian grocery)
  • Oriental Trading Co. (spare parts and party supplies)

Why we care. Amazon’s Retail Ad Service takes Amazon’s sophisticated ad targeting, measurement, and reporting capability outside its store to other merchants. This opens up new channels for reaching highly targeted people in all retail environments while taking advantage of Amazon’s existing ad tech.

Furthermore, with the service being early-adopter among some of the leading retailers it is also showing potential to disrupt the retail media industry allowing you to reach out and get more specific without having to resort to Amazon’s marketplace directly.

Between the lines. This isn’t just a way for retailers to take advantage of Amazon’s tested ad technology but it’s also a way for Amazon to get better data to improve its ad predictions and recommendations on a broad range of retail channels.

Bottom line. Amazon is expanding its advertising know-how to other merchants and in doing so it’s set to secure an even larger digital advertising market share while allowing other merchants to drive increased ad revenue.

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