Amazon’s US advertising business, which is the third largest in the country behind Google and Meta, is getting even bigger as it will give other retailers the technology that powers its vast ad business on their own websites.
The new service will allow other online retailers to: “Deliver contextually relevant ads by leveraging Amazon’s two decades of ad tech expertise, driven by machine learning models trained on trillions of shopping signals” across their product, search, and browsing pages”.
Amazon Retail Ad Service will enable online retailers to show product ads on their search, browse, and product pages to help their customers discover new selections and make informed purchase decisions. Ads incorporate availability and price, in addition to contextual information such as shopper search query, category or product being viewed to ensure customers see ads for desired and available products. Retailers will determine ad creative formats, where ads appear across their apps and websites, and how many ads are shown.
They’ll also be able to determine what customers see after clicking on an ad, such as directing traffic to the product page, providing a ‘quick view’ of the product, or enabling the customer to add the product directly to their cart.
“Amazon Retail Ad Service helps retailers enhance their shopping experience with highly relevant advertising that guides customers through the shopping journey, helping their shoppers with product discovery and making informed purchase decisions,” said Paula Despins, vice president of Amazon Ads Measurement.
“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”.
“We are excited to work with Amazon on the launch of its new Retail Ad Service. This innovative solution and proven technology allow us to deliver more relevant and personalized ads to our shoppers, enhancing their experience while driving stronger engagement and conversions,” said Neil Folgate, SVP of Global Marketing at Amazon advertiser iHerb. “With over 1,200 shared brands already active on Amazon Ads, this creates a frictionless opportunity for advertisers to connect with iHerb’s highly motivated audience and drive measurable results.”
The service aims to make it easy for retailers to offer their advertising to brands already using Amazon Ads, providing retailers a “streamlined connection” to advertisers. Advertisers will see available retailers in their Amazon Ads console or API integrations. They will then be able to create and manage their campaigns for each retailer and access reporting seamlessly through existing workflows that are familiar to them.
This centralised approach, Amazon claims, saves time and resources while expanding reach. Advertisers will also reportedly benefit from the reassurance that comes with using the same ad technology and machine learning models that drives their performance in Amazon’s store.
