- Amazon opens in-house ad tech for third-party e-commerce sites
- Retailers will have control over the style, placement and quantity of ads.
- Available from Tilly’s and more soon, price not confirmed
Amazon is set to offer its in-house advertising technology to other e-commerce platforms through its newly launched Amazon Retail Ad Service.
By signing up to use Amazon’s advertising service, online retailers will be able to display relevant, targeted 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 on their online sites, as well as how many they want to use. They will also have access to Amazon’s ad measurement and reporting tools to optimize their advertising strategies.
Amazon Retail Advertising Service
Online stores will also have control over what customers see when they click on an ad, such as opening a quick view, opening a full product page, or adding it directly to cart.
The ad boasts the company’s more than two decades of experience in advertising technology. Amazon’s advertising services revenue amounted to $14.3 billion in the third quarter of fiscal 2024, up from $12.1 billion during the same period in its fiscal 2023.
Some early partners have already used Amazon Retail Ad Service in beta, including health and wellness retailer iHerb, Asian grocery startup Weee! and party supplies firm Oriental Trading Co. The service will launch soon, with clothing retailer Tilly’s among the first users.
Amazon confirmed that the service runs on “dedicated systems,” separate from its main retail platform, and that retailers will manage their own data through AWS accounts, addressing concerns about the security of shoppers’ data. The service will use machine learning to produce relevant ads for shoppers.
Amazon said in an email to TechRadar Pro: “We generate revenue through a combination of sharing a portion of the advertising revenue and charging for the technological infrastructure used. This model ensures that our interests are aligned with the success and growth of the retailer in its advertising business.”
“We’ve designed this to be a win-win for retailers, advertisers and shoppers, and we look forward to seeing it improve results, drive sales and improve the shopping experience,” said Paula Despins, vice president of ad measurement.
