Amazon is intensifying its focus on promoting its demand-side platform (DSP) this holiday season, emphasizing that its ad technology extends beyond purchasing Amazon’s own inventory. The company positions its DSP as a key tool for advertisers to buy ads across the open web.
A recently circulated pitch deck highlights this strategy.
As part of this push, Amazon has formed partnerships with publishers such as Hearst and secured access to premium inventory from major media owners including Netflix, NBCUniversal, Disney, and Spotify. According to Amazon, its platform now reaches 86% of the U.S. population, exceeding 300 million people monthly.
However, broad reach alone does not guarantee market dominance. Many of Amazon’s inventory arrangements are non-exclusive, which limits differentiation from competitors. Amazon’s competitive edge will likely depend on ad performance and efficiency improvements, enabling it to challenge The Trade Desk’s leadership.
Karsten Weide, principal analyst at W Media Research, notes that connected TV (CTV)—a core revenue source for The Trade Desk—is a major growth area for Amazon Ads as well, with nearly half of The Trade Desk’s revenue coming from CTV.
Ad tech consultant Jonathan D’Souza Rauto highlights timing as key, pointing out that The Trade Desk’s focus on publisher offerings creates an opportunity for Amazon on the buy side.
Amazon executives underscore the value of data signals from their expansive retail business and partnerships with ad tech firms like PubMatic, Index Exchange, and TripleLift.
Amazon’s pitch also emphasizes cost advantages, citing platform fees as low as 1% for Programmatic Guaranteed deals—significantly below the estimated 4% industry average.
Haley Feazell, VP of global media at Mindgruve, states, “Amazon is typically between 4% and 6% more efficient than The Trade Desk,” although exact figures were not disclosed.
Stephen Reagan, Mindgruve’s chief commercial officer, adds that Amazon has lowered entry barriers to its DSP. Previously requiring $50,000 monthly spend, advertisers can now start with minimal investments.
Additionally, Amazon incorporates AI tools to integrate advertisers’ own data with its vast signal pool, supporting both brand and performance campaigns.
Measurement and attribution tools such as the Amazon Ad Tag and Conversion API help advertisers track and optimize campaigns across web and app environments.
CTV remains a key focus, especially following Amazon Ads’ launch in Prime Video earlier this year, critical to attracting higher advertising spending.
Amazon’s DSP strategy supports its broader goal of increasing advertising revenue and overall business profitability, reflected in the $17.7 billion ad revenue reported in Q3—a 24% increase from the previous year.
Amazon declined to comment on this story, while The Trade Desk did not respond to requests for comment.