Amazon offers other retailers the technology that powers its $50 billion advertising business.
Amazon's advertising business ranks third in the United States, behind Meta and Google.
Amazon, the e-commerce giant, is taking a new step in its already impressive advertising business, which ranks second only to Google and Meta in the United States. Now, in addition to selling ads within its own platform, it will also offer other retailers the technology that underpins its advertising business, which generates $50 billion annually.
The company has launched a beta version of its Retail Advertising Service, allowing other online stores to utilize its advanced advertising technology. This system enables the delivery of relevant ads, leveraging two decades of Amazon's experience in this field, with machine learning models that have been trained using trillions of purchasing signals.
Additionally, this new service will connect retailers with the advertising customer base that Amazon already possesses. Brands currently using Amazon's advertising system will have the option to display their ads on third-party sites, representing a way to increase Amazon's revenue through what is known as "retail media," i.e., advertising seen in stores or during online purchases, regardless of whether these transactions occur on Amazon's site. This could also facilitate the collection of more data by the company, something that could draw the attention of the FTC.
This development is reminiscent of the launch of Amazon Web Services, which was initially created to optimize the operation and speed of its marketplace and later began to be offered to other companies, becoming a fundamental pillar of its operations.
