Amazon’s new Retail Ad Service brings RMN to the masses

Amazon’s new Retail Ad Service is making retail media networks available to everyone. The service lets retailers use Amazon’s powerful advertising technology to sell ads on their websites.

This is a big step for the ecommerce and advertising giant which primarily focused on selling ads within its ecosystem. The company is now directly competing with retail adtech leaders like Criteo, Epsilon and Koddi.

How it works

Integrating Amazon’s technology into their websites will let retailers: 

• Sell ads to Amazon’s vast pool of advertisers.
• Utilize Amazon’s machine learning to deliver highly targeted and personalized ads to shoppers.
• Control ad placement and formats, ensuring the ads don’t disrupt the experience and look of websites.
• Get insights into ad performance and customer behavior via Amazon’s analytics tools.

This gives retailers — always operating on thin margins — new revenue streams by selling ad space to other brands. It also aids the customer experience by providing relevant and engaging ads to shoppers, which could boost conversion rates. Finally, retailers don’t have to add the resources needed to do this on their own, as Amazon is handling all the messy parts.

Early adopters and future outlook

Early adopters include iHerb, Weee! and Oriental Trading Company, suggesting the company is targeting smaller and mid-sized retailers to start.

Dig deeper: Google Ads rolls out Brand Report for enhanced advertiser insights

While Amazon faces competition from established players, its strong brand recognition, vast advertiser base and cutting-edge technology give it a significant competitive advantage.

Amazon Retail Ad Service is likely a significant disruption in the retail adtech market. By offering retailers access to its powerful advertising platform, Amazon is poised to reshape how brands connect with consumers across the retail landscape. It could be a boon for advertisers, too. Not only can it provide access to new audiences, but it is yet another push for standardizing measurement in retail media networks.

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