Amazon is selling the tech behind its $50 billion ad business to other retailers

Jan 10, 2025 12:33 AM - 1 week ago 10881

Amazon’s monolithic advertizing business, which is only surpassed successful the US by Google and Meta, is astir to get bigger. In summation to trading ads connected its sprawling marketplace, it will now fto different retailers usage the exertion powering its $50 cardinal business connected their ain websites, arsenic reported earlier by Adweek.

The company’s caller Retail Ad Service beta will fto different online stores “Deliver contextually applicable ads by leveraging Amazon’s 2 decades of advertisement tech expertise, driven by instrumentality learning models trained connected trillions of shopping signals” crossed their product, search, and browsing pages.

It besides plugs the retailers into Amazon’s existing advertizing customers, arsenic brands already utilizing Amazon’s advertisement strategy tin take to spot their ads connected third-party sites. The setup besides allows Amazon to propulsion much profit from “retail media” (ads you spot successful stores aliases while shopping online) moreover erstwhile the shopping isn’t happening connected its site, and could springiness it entree to much information — which is thing the FTC whitethorn person questions about.

The way of this business is akin to the motorboat of Amazon Web Services, which the institution built to support its online marketplace moving and loading quickly 24/7 earlier trading entree to the servers arsenic a backbone for different companies’ operations, as noted by CNBC.