Amazon’s massive advertising business, which is only surpassed in the US by Google and Meta, is about to get bigger. In addition to selling ads on its sprawling marketplace, it will now let other retailers use the technology powering its $50 billion business on their own websites, as reported earlier by Adweek.
Amazon is selling the tech behind its $50 billion ad business to other retailers
Selling ad spots in its store, and now in other stores too, is a big business for Amazon.
Selling ad spots in its store, and now in other stores too, is a big business for Amazon.
Illustration by Alex Castro / The Verge
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The company’s new Retail Ad Service beta will let other online stores “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.
It also plugs the retailers into Amazon’s existing advertising customers, as brands already using Amazon’s ad system can choose to place their ads on third-party sites. The setup also allows Amazon to pull more profit from “retail media” (ads you see in stores or while shopping online) even when the shopping isn’t happening on its site, and could give it access to more data — which is something the FTC may have questions about.
The path of this business is similar to the launch of Amazon Web Services, which the company built to keep its online marketplace running and loading quickly 24/7 before selling access to the servers as a backbone for other companies’ operations, as noted by CNBC.
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