BARCELONA, SPAIN – MARCH 2: The Amazon Advertising logo (formerly known as AMD or Advertising Solutions Services by Amazon Marketing Services) during Action World Congress 2023 on March 2, 2023 in Barcelona, Spain. (Photo by Joan Cross/NurPhoto via Getty Images)
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Amazon It has become online to the master In recent years, brands have paid big bucks for premium placement on retailer websites. Amazon now allows other websites to use its advertising technology in their own stores.
Amazon said Thursday that the new product, called Amazon Retail Ad Services, allows the company to “show contextually relevant ads in the right place and at the right time” in search results, product pages and other areas of the site.
It’s initially available to U.S. retailers, who will pay based on usage levels. Price was not disclosed.
Amazon 2022 began disclosing advertising revenue in quarterly earnings reports, showing the business has become a significant contributor to the company’s top and bottom lines. Advertising revenue in the latest quarter was $14.3 billion, ranking third letter and Yuan in digital advertising.
That’s still far less than the sales Amazon generates through its online stores and cloud computing, which are $61.4 billion and $27.4 billion, respectively. quarter October ends.
Most of Amazon’s advertising revenue comes from sponsored product ads, which are keyword-targeted ads that allow brands to promote certain products. Amazon Jam-packed with more of these sponsored items Access search results and product pages over time. It also generates some advertising revenue through streaming.
With Amazon Retail Ads, users will be able to customize the design, placement and number of ads that appear on their sites, as well as use Amazon’s ad measurement and reporting tools.
The service can provide Amazon with valuable data to support its advertising prediction and recommendation technology. The company said early customers include health and wellness retailer iHerb, Asian grocery startup Weee! and Oriental Trading Ltd, which sells toys, party and craft supplies.
“We’ve designed it 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,” said Paula Despins, Vice President of Advertising Measurement at Amazon, in a press release.
The announcement comes just days before one from the National Retail Federation. annual trade show.
This isn’t the first time Amazon has sold its in-house technology and services to third parties.
Amazon Web Services began as the cloud infrastructure to support its online retail business. The company launched its AWS business in 2006. Introducing Buy With Primewhich combines the payment and fulfillment services Amazon offers other retailers.
