Amazon is intensifying its push to position its demand-side platform (DSP) as a key tool for purchasing ads across the open web, not just on Amazon properties. A recent pitch deck distributed to agencies highlights this broader ambition.
The company has forged partnerships with publishers like Hearst and secured premium inventory from media giants such as Netflix, NBCUniversal, Disney, and Spotify. Amazon claims its DSP now reaches 86% of the U.S. population, totaling over 300 million monthly.
However, reach alone does not guarantee dominance over rivals like The Trade Desk, especially since many of Amazon’s inventory deals are non-exclusive. Amazon plans to compete by delivering superior ad performance and cost efficiency, aiming to narrow The Trade Desk’s market lead.
Industry analysts note that connected TV (CTV) is central to this competition. Nearly half of The Trade Desk’s revenue stems from CTV, an area where Amazon Ads is rapidly growing. According to ad tech consultant Jonathan D’Souza Rauto, timing is favorable as The Trade Desk focuses on publisher offerings, leaving opportunities on the buy side.
Amazon emphasizes its data advantages gained from its retail operations and partnerships with ad tech firms including PubMatic, Index Exchange, and TripleLift. The company claims its DSP offers lower fees, as little as 1% on Programmatic Guaranteed deals, compared with the industry average of about 4%.
Haley Feazell, VP of Global Media at Mindgruve, confirmed Amazon’s lower platform fees, estimating it to be 4-6% more cost-efficient than The Trade Desk, though she did not provide exact numbers. Stephen Reagan, Mindgruve’s Chief Commercial Officer, added that Amazon has reduced barriers to entry, allowing advertisers to begin DSP campaigns with minimal spend, a shift from the previous $50,000 monthly minimum.
Amazon also integrates AI into its DSP, enabling advertisers to combine their own data with Amazon’s extensive signals for brand and performance campaigns. The pitch highlights the Amazon Ad Tag and Conversion API tools, which help advertisers track performance, optimize campaigns, and attribute conversions across various platforms.
CTV remains a critical focus, particularly since Amazon introduced ads on Prime Video in January, as it seeks to boost ad revenue and overall business profitability. In Q3, Amazon’s ad revenue reached $17.7 billion, a 24% year-over-year increase.
Amazon declined to comment on these developments. The Trade Desk did not respond to requests for comment.