Amazon Retail Ad Service: The AWS of Retail Media?

Amazon has introduced Retail Ad Service, taking a major step toward becoming a comprehensive ad tech provider, much like it did with its cloud computing arm, AWS.

But what exactly is Amazon Retail Ad Service, and where could it go next?

➡️ What It Is Now
It allows advertisers to launch Sponsored Product campaigns directly on partnered retail websites and apps, all managed through the Amazon Ads console.

Key highlights as of now:

◼︎ Ad Placement: Ads appear on the partnered retailer’s website/app—not Amazon.
◼︎ Product Linking: Ads direct customers to the product’s page on the retail partner’s platform.
◼︎ Eligibility: Brands must sell on the retailer’s platform to advertise there.
◼︎ Accessibility: Brands don’t need to sell on Amazon to use this service.

For example, if you’re a skincare brand selling on iHerb, you can create Sponsored Product ads directly from the Amazon Advertising Console. These ads can appear on iHerb’s browse pages, search results, and product detail pages. When customers click on an ad, they are directed to your product detail page on iHerb.

All performance data and insights are available within the Amazon Advertising Console, allowing you to track and optimize your campaigns without needing to have an Amazon store.


➡️ What It Could Become
The possibilities are vast. Amazon Retail Ad Service could empower retailers, big and small, to tap into the $50 billion+ ad business Amazon has built. Imagine:

◼︎ Local boutiques or niche e-commerce sites integrate sponsored ads seamlessly to enhance the shopping experience.
◼︎ Advertisers gaining access to new audiences across various platforms, expanding far beyond Amazon.

This service has the potential to become the advertising backbone for e-commerce, just as AWS is for cloud computing.

The question is: Will retailers embrace this innovation, or will they hesitate to collaborate with a competitor?