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Amazon Aims for a Bigger Piece of the DSP Ad Tech Space
February 22, 2024
The online tech giant is pushing to get advertisers to utilize its ad tech for purchasing ads across various publishers, not limited to its own media. While this option has been available for a while, Amazon’s ad executives are currently going strong with their efforts, according to Digiday.
This mission with the ad tech, called the demand-side platform, has become a key business focus to the extent that Amazon ad executives have had discussions over the past few weeks about buying ads on Prime Video.
Yet, it’s the conversations with ad tech vendors in recent months that carry significant importance, highlighting Amazon’s commitment to strengthening its position in the programmatic ad space. This is the view that several execs who have been in these discussions have expressed. However, they have chosen to stay anonymous out of fear of the consequences of connection with Amazon.
It has become clear from these discussions that Amazon is seeking to secure and grow partnerships with ad tech vendors who can help the tech giant make it easier to purchase ads “beyond its own ecosystem that aren’t banner ads.” One executive explained, “Amazon is making a big investment into the sort of deals with supply-side platforms (SSPs) that can help it secure better access to premium inventory that isn’t banners.”
According to the executive, these deals traditionally include the arrangement of “connecting Amazon demand at a low fee for high signal integrity with various sellers.” Essentially, this translates to negotiating agreements with ad tech vendors to get a good price in return for prioritized treatment.
However, these agreements aren’t as simple as they seem, as they demand technical expertise. Consequently, Amazon has had to “upgrade integrations with SSPs to enhance signal capture for in-app and CTV inventory.” This, in turn, provides advertisers with a wider array of buying options and has the potential to enhance performance.
Another ad tech executive expanded on this point, saying, “Amazon is making significant investments in deals. The collaborations we’re undertaking with them are primarily focused on in-app and CTV. The objective is to elevate the product to a level comparable to other DSPs that cater to a broader range of marketers and budgets.”
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