- Amazon opens up in-house ad tech for third-party ecommerce sites
- Retailers will have control over ad style, placement and quantity
- Available with Tilly’s and more soon, pricing is unconfirmed
Amazon is set to offer its in-house ad technology to other ecommerce platforms through its newly-launched Amazon Retail Ad Service.
By signing up to use Amazon’s advertising service, online retailers will be able to show targeted, relevant ads on their own sites, helping them offer a more personalized experience and ultimately, drive more ad revenue.
Retailers will have control over the style and location of ads across their online sites as well as how many they want to use. They will also get access to the Amazon’s ad measurement and reporting tools to optimize their ad strategies.
Amazon Retail Ad Service
Online stores will also have control over what customers see when they click on an ad, such as opening a quick view, launching a full product page or adding directly to the basket.
The announcement boasts of the company's more than two decades’ ad tech expertise. Amazon advertising services revenue stood at $14.3 billion in its fiscal year 2024 third quarter, up from $12.1 billion during the same period of its fiscal 2023.
Some early adopter partners have already used Amazon Retail Ad Service in beta, including health and wellness retailer iHerb, Asian grocery startup Weee! and party supplies firm Oriental Trading Co. The service is set to launch soon, with clothing retailer Tilly’s among the first users.
Amazon confirmed the service runs on “dedicated systems,” independently from its main retail platform, and retailers will manage their own data through AWS accounts, which addresses concerns around the security of shoppers’ data. The service will use machine learning to produce relevant ads for shoppers.
Amazon said in an email to TechRadar Pro: "We generate revenue through a combination of sharing a portion of the ad revenue and charging for the technology infrastructure used. This model ensures that our interests are aligned with the retailer's success and growth in their advertising business."
"We’ve designed this to be a win for retailers, advertisers, and shoppers, and we look forward to seeing how it improves outcomes, drives sales, and enhances the shopping experience," Paula Despins, VP of Ads Measurement, commented.
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