Amazon's Ambitions in the DSP Ad Tech Market

Overview

• Amazon is seeking to expand its presence in the DSP (Demand-Side Platform) ad tech market.
• The company is encouraging advertisers to use its ad tech for purchasing ads on non-Amazon media.
• Amazon's DSP is becoming a focal point in discussions with advertisers, especially around Prime Video.
• Interactions with ad tech vendors are critical for Amazon's strategy.

Amazon's Strategy

• Amazon is brokering partnerships with ad tech vendors to facilitate ad purchases beyond its own ecosystem.
• Focus on deals with supply-side platforms (SSPs) for premium inventory access, particularly non-banner ads such as in-app and CTV.
• Efforts to upgrade integrations with SSPs to enhance signal capture for in-app and CTV inventory.

Technical and Business Challenges

• Complex deals require advanced technical integration.
• Amazon seeks to offer advertisers more buying options and better performance.
• The company is making significant investments to improve its DSP to compete with other major platforms like The Trade Desk and Google's DV360.

Advertiser and Vendor Perspectives

• Advertisers traditionally view Amazon's DSP as primarily for buying Amazon ads.
• Amazon's push is to use the DSP for broader ad purchases, particularly targeting marketing funnels in areas like Thursday Night Football.
• Ad tech vendors recognize the risks but also the opportunities in working with Amazon.
• Amazon's selective approach in vendor partnerships aims to consolidate buying power.

Market Dynamics and Implications

• Amazon's DSP is evolving to be omnichannel, competing with major players.
• Access to quality data and premium inventory are key for marketers choosing DSPs.
• Amazon's strategic investments aim to enhance advertiser performance through initiatives like the Amazon Publisher Cloud and AI advancements.

Conclusion

• Amazon's efforts indicate a long-term strategy to capture a larger share of the DSP market.
• The company's enhancements in DSP capabilities and strategic partnerships position it for potential growth in the programmatic ad space.
• Success hinges on convincing advertisers of the DSP's efficacy across a broader range of ad purchases beyond Amazon's ecosystem.