Amazon launches ad tech for retailers to host sponsored ads on their platforms
TL;DR
- Amazon has launched a new ad product for U.S. retailers to display sponsored ads on their e-commerce sites and apps.
- The ads will be powered by Amazon’s ad tech but remain native to the retailer’s platform.
- Brands already using Amazon's ad system can now advertise on external websites.
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Amazon has launched Amazon Retail Ad Service, a new platform designed to extend its advertising technology to other retailers. Announced on Thursday, the service enables U.S. retailers to sell and display “contextually relevant sponsored ads” on their websites or apps.
Amazon Retail Ad Service is built on Amazon Web Services and is currently available to retailers in the U.S. The tool will let retailers monetize their online traffic while keeping the shopping experience native to their platform, Amazon said.
How Amazon Retail Ad Service works
With the new service, retailers can leverage Amazon’s robust advertising tools to show sponsored ads on key pages, such as search results. According to Amazon, the system allows businesses to "select the retailer and products to advertise during the campaign setup."
Retailers can use the service using simple API setups. Amazon claims it will allow them to deliver ads to shoppers on search, browse, and product detail pages, show sponsored product ads featuring items from their catalog, and retain control over ad appearance.
Shoppers can engage with these ads directly on the retailer’s platform and complete their purchases without being redirected to Amazon. Brands already using Amazon’s ad platform can now place campaigns on third-party retail sites. However, advertisers must have an Amazon Ads account to participate.
Amazon Retail Ad Service also puts the company in direct competition with ad-tech retail providers like Criteo, Epsilon, and Koddi, offering similar solutions for retail ad monetization.
Amazon’s advertising business has seen consistent growth. The company’s Q3 2024 earnings showed a 19% year-over-year increase in ad revenue, reaching $14.3 billion.
The e-commerce company been selling ads on its marketplace and In July last year, Amazon introduced ads for non-Amazon sellers, allowing businesses outside Amazon’s marketplace to grow their customers. However, this is the first time the platform will let retailers use its ad tech tools to display sponsored ads across their websites.