Amazon is increasing its presence for media. New services announced one after another at advertising conference | Business Insider Japan
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- Amazon’s advertising sales in the US in 2023 are predicted to be approximately 5 trillion yen. Although Alphabet and Meta have a large lead in the digital advertising market, Amazon is expanding its share by developing its own services.
- Amazon announced updates to its DSP and new Amazon Publisher Cloud service to better support advertisers and media owners.
- These services aim to emphasize privacy protection and make it easier for advertisers to create effective deals.
In recent years, the rise of e-commerce giant Amazon in the digital advertising space has been one of the more notable aspects of digital media in the United States. The company used the major advertising conference Unboxed on October 25 to tout its accomplishments.
research companyInsider IntelligenceAccording to 2020, global digital advertising spending is expected to exceed $600 billion (approximately 89.455 trillion yen) in 2023, with the market being driven by the three largest companies: Alphabet, Meta, and Amazon. That’s what it means. Of the three companies, Amazon is the only one whose market share has increased in recent months, with Amazon Advertising expected to have US sales of $33.96 billion (approximately 5.63 trillion yen) in 2023. According to Insider Intelligence.
But when you compare Alphabet and Meta’s U.S. sales of $78.86 billion (approximately 11.757 trillion yen) to $51.35 billion (approximately 7.656 trillion yen), the magnitude of the difference becomes clear. However, Amazon executives are hopeful that the gap will narrow to some extent as it rolls out new services in which cloud computing plays a key role.
Amazon announced updates to its DSP, including new cleanroom services for publishers and cross-channel planning tools to expand advertisers’ reach with Amazon Marketing Cloud (AMC).
DSP updates by Amazon
DSPupdateIn addition to the Amazon Ads API, it also enables advertisers to generate more comprehensive insights about their audiences.AMCenhancements, as well as advanced campaign planning, activation, and optimization controls.
Kelly McClain, vice president of Amazon DSP, said another key part of the buy-side tool updates is a simplified user interface. “We listened to customer feedback that it should be simpler and completely overhauled the user interface settings,” McLean said, adding that the goal was to improve “goal-based workflows and investments.”
McClain said this will make it easier for marketers to develop specific campaign KPIs and “actually drive results against them.” He detailed how Amazon Ads wanted to showcase its “full funnel capabilities” beyond its core reputation as a retail media service.
Amazon Publisher Cloud
Meanwhile, Amazon has also announced Amazon Publisher Cloud as a way to complement its DSP services with several media owners, including NBCUniversal and DIRECTV, which are already trialling it. The newest service, Amazon Publisher Cloud, which is currently in beta and is based on AWS Clean Rooms, is a more advanced service that enables advertisers and media owners alike to transact through DSPs. We promise to protect your privacy.
In a press statement, Steve Labushin, vice president of third-party supplies at Amazon Ads, said, “We’re using Amazon Publisher Cloud to help publishers analyze first-party signals, along with Amazon Ads insights, and create customized products. “We built it to securely control that first-party signal by creating more effective deals and easily making it available to Amazon DSP.”
Separately, Amazon’s McLean said that early efforts with Publisher Cloud helped brands reach the audiences they needed by as much as 67% in some cases. “This is the industry’s first solution powered by Amazon Publisher Cloud…This is just one initiative in Amazon’s quest to improve interoperability and ease in the industry.”
