Amazon has launched a new service called Amazon Retail Ad Service, designed to help other retailers manage contextual ad campaigns on their own websites. This service utilizes the e-commerce giant’s advertising technology, as announced in a company blog post and at the Consumer Electronics Show.
Retailers will be able to run ads on their search, browse, and product pages, with control over campaign functions like creative formats, ad placement, and ad volume. The service also enables retailers to guide the customer experience after an ad click, directing customers to product pages, quick view images, or the add-to-cart function.
Currently, iHerb, Oriental Trading Company, and Weee! are using the offering in beta. Brands like Tilly’s are expected to launch soon.
The launch of Amazon Retail Ad Service signals the company’s move to extend its successful solutions to other retailers looking to capitalize on the lucrative market of online advertising. This move could disrupt the ecosystem of third-party vendors that have emerged to help retailers establish the necessary advertising infrastructure in a competitive market.
Amazon has become a model for retailers looking to scale up their advertising businesses, known in the industry as retail media networks. Amazon’s background in technology and e-commerce has given it an advantage in developing sophisticated digital marketing tools that can be challenging for traditional brick-and-mortar stores to implement.
Amazon Retail Ad Service simplifies the process of launching and managing online campaigns directly through an e-commerce site. Ads utilize information such as product availability and pricing, as well as contextual information like shopper search queries and the category being viewed on the website or app. The tools also let brands tailor the customer experience after an ad engagement, whether by providing more information or facilitating a direct purchase.
Brands on the Amazon Ads platform or that use Amazon API integrations will have access to available retailers for advertising. This centralized model aims to boost exposure and reach.
Neil Folgate, senior vice president of global marketing at iHerb, said the service is “driving stronger engagement and conversions.” He highlighted that the service provides a bridge to iHerb’s audience through the platform’s existing pool of 1,200 brands already active on Amazon Ads.
The Amazon Retail Ad Service is built on Amazon Web Services (AWS), the company’s cloud-computing technology. It includes controls to ensure retailers’ data is kept separate from Amazon Ads and other business segments. Measurement capabilities are powered by AWS Clean Rooms, which generates aggregated, anonymized reports for retailers and their advertising partners to ensure privacy.
“The consistent measurement, reporting and purchase data across different retail platforms is incredibly insightful for campaign performance and optimization,” said Drew Habeck, senior vice president of media at Omnicom’s Flywheel agency. “We’re thrilled about the potential this service has to enhance our advertising strategies and drive better results for our clients.”
