Dive Brief:

• Amazon unveiled a new service that lets other retailers manage contextually relevant campaigns on their own websites with the aid of the e-commerce giant’s ad tech, per a company blog post and announcement at the Consumer Electronics Show. 
• Amazon Retail Ad Service helps retailers to run ads on their search, browse and product pages while controlling campaign functions like creative formats, ad placement and ad volume. Retailers will also be able to guide what a customer sees after clicking an ad, whether that’s a product page, quick view image or add-to-cart function.  
• Retailers currently using the offering in beta include iHerb, Oriental Trading Company and Weee!, with additional brands like Tilly’s launching soon.   

Dive Insight:

Amazon Retail Ad Service shows the e-commerce giant extending its proven solutions to other retailers that want to get in on a lucrative market without the costly and complicated process of standing up ad tech. The move stands to disrupt the ecosystem of third-party vendors that have jumped on the booming retail media opportunity, seeking to help retailers establish the infrastructure necessary to succeed in an increasingly competitive category. 

Amazon has served as the model for retailers aspiring to scale up ad businesses reliant on first-party shopper data, commonly referred to as retail media networks within the industry. The company’s roots in tech and e-commerce have given it a leg up in developing sophisticated digital marketing tools that can come with steep learning curves for traditional brick-and-mortar stores. 

Amazon Retail Ad Service streamlines the process of launching and managing online campaigns through an e-commerce site. Ads run through Amazon Retail Ad Service factor in product availability and price, as well as contextual information, such as shopper search queries and the category being viewed on the website or app. The tools also let brands guide the customer journey after an engagement with an ad, whether that’s sending a consumer more information or pushing a direct purchase. 

Brands on the Amazon Ads platform or using Amazon API integrations will see available retailers to advertise with, a centralized model intended to drive exposure and reach. Neil Folgate, senior vice president of global marketing at iHerb, said that the service is “driving stronger engagement and conversions” in a press statement. The executive called out a shared pool of 1,200 brands already active on Amazon Ads, providing a bridge to iHerb’s audience. 

Amazon Retail Ad Service is built on Amazon Web Services (AWS), the company’s cloud-computing technology, and comes with controls to ensure retailer data is kept separate from Amazon Ads and other business segments. Measurement capabilities are powered by AWS Clean Rooms to produce aggregated, anonymized reports for retailers and their advertising partners that 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, in a statement attached to the news. “We’re thrilled about the potential this service has to enhance our advertising strategies and drive better results for our clients.”