The online technology giant is pushing to allow advertisers to use its ad technology to buy ads from a variety of publishers, not just their own media. The option has been available for some time, but Digiday reports that Amazon's advertising executives are now pushing ahead with the effort.
This mission with ad tech, known as a demand-side platform, has become such a key business focus that Amazon's advertising executives have discussed buying ads on Prime Video in recent weeks.
However, conversations with ad tech vendors in recent months have been significant and highlight Amazon's efforts to strengthen its position in the programmatic advertising space. This is the view expressed by several executives who participated in these discussions. However, they chose to remain anonymous due to fear of repercussions due to their ties to Amazon.
These discussions revealed that Amazon is seeking to secure and expand partnerships with ad tech vendors to make it easier for Amazon to buy ads “beyond its own ecosystem of non-banner ads.” Ta. “Amazon is investing heavily in deals with supply-side platforms (SSPs) that help it secure better access to non-banner premium inventory,” one executive explained.
The executive said these deals traditionally include arrangements that “combine Amazon's demand with a variety of sellers at low rates and with high signal integrity.” Essentially, this means negotiating contracts with ad tech vendors to get better prices in exchange for preferential treatment.
However, these contracts are not as simple as they seem, as they require technical expertise. As a result, Amazon had to “upgrade its integration with SSP to enhance signal capture for in-app and CTV inventory.” This provides advertisers with a wider range of purchasing options and can potentially improve performance.
Another ad tech executive elaborated on this point, saying, “Amazon is investing heavily in deals. The collaboration we're working on with them is primarily focused on in-app and CTV. Purpose is to elevate the product to the same level as other DSPs that cater to a wider range of marketers and budgets.”
