- Amazon opens up in-house ad technology to third-party e-commerce sites
- Retailers will have control over ad style, placement and volume
- Available with Tilly’s and more soon, prices are unconfirmed
Amazon is set to offer its in-house ad technology to other e-commerce platforms through its recently launched Amazon Retail Ad Service.
By signing up to Amazon’s advertising service, online retailers will be able to display targeted, relevant ads on their own sites, helping them offer a more personalized experience and ultimately generate more advertising revenue.
Retailers will have control over the style and placement of ads across their online sites, as well as how many they will use. They will also gain access to 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 cart.
The announcement boasts the company’s more than two decades of ad tech expertise. Amazon’s advertising services revenue was $14.3 billion in the third quarter of 2024, up from $12.1 billion in the same period in 2023.
Some early adopter partners have already used the Amazon Retail Ad Service in beta, including health and wellness retailer iHerb, Asian grocery startup Weee! and party supply company Oriental Trading Co. The service will launch soon, with clothing retailer Tilly’s among the first users.
Amazon confirmed that the service will run on “dedicated systems”, independent of its main retail platform, and retailers will manage their own data through AWS accounts, which addresses concerns about the security of shoppers’ data. The service will use machine learning to produce relevant ads for customers.
Amazon said in an email to TechRadar Pro: “We generate revenue through a combination of sharing a portion of advertising 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 designed this to be a win-win for retailers, advertisers and shoppers, and we look forward to seeing how it improves results, drives sales and enhances the shopping experience,” commented Paula Despins, VP of Ads Measurement.
