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BARCELONA, SPAIN – MARCH 2: The logo of Amazon Ads, the advertising solutions service formerly known as AMD or Amazon Marketing Services, during Mobile World Congress 2023 on March 2, 2023, in Barcelona, Spain. (Photo by Joan Cros/NurPhoto via Getty Images)
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Amazon became online to the young man in recent years, with brands paying big bucks for premium placement on retailer websites. Now, Amazon allows other sites to use its advertising technology for their stores.
The new offering, called Amazon Retail Ad Service, allows businesses to show “contextually relevant ads in the right place and at the right time” in search results, product pages and other areas of their site, Amazon said Thursday.
It is initially available to US sellers, who will pay fees based on usage levels. Prices have not been disclosed.
Amazon in 2022 began to uncover advertising revenue in its quarterly earnings reports, showing that the business had become a significant contributor to the company’s top and bottom lines. Advertising revenue in the last quarter reached $ 14.3 billion, third to Alphabet and Meta in digital advertising.
It is still much less than the sales that Amazon generates from online stores and cloud computing, which reached $61.4 billion and $27.4 billion, respectively, in the market. fourth which ended in October.
Most of Amazon’s ad revenue comes from sponsored product ads, which are keyword ads that allow brands to promote certain items. Amazon has stuffed more of these sponsored articles in search results and product pages over time. It also generates some advertising revenue through streaming.
With Amazon Retail Ad Service, users will be able to customize the design, placement and number of ads displayed on their sites, as well as use Amazon’s ad measurement and reporting tools.
Amazon said the service operates on systems that are separate from its own retail business, and sellers manage their data via AWS accounts.
The service could provide Amazon with valuable data that it can use to improve its ad prediction and recommendation technology. The company said early customers include health and wellness retailer iHerb, Asian grocery startup Weee! and Oriental Trading Co., which sells toys, party supplies and crafts.
“We’ve designed this to be a win-win for retailers, advertisers and shoppers, and we look forward to seeing how it improves results, boosts sales and improves the shopping experience,” said Paula Despins, vice president of Amazon Ads Measurement. , in the press release.
The announcement comes just days before the National Retail Federation annual trade show.
This is not the first time that Amazon has sold its internal technology and services to third parties.
Amazon Web Services started as cloud infrastructure to support its online retail business. The company launched AWS as a business in 2006. In 2022, the company launched Buy With Primewhich combines Amazon’s payment and fulfillment services for other retailers.
