"Amazon is leaning hard on a familiar message this holiday season: its ad tech isn't just for buying its ad inventory. The company wants advertisers to see its demand-side platform as the backbone for buying across the open web. A new pitch deck making the rounds at agencies drives that point home. To get there, Amazon has been piecing together partnerships with publishers like Hearst and gaining access to premium inventory from media owners including Netflix, NBCU, Disney, and Spotify. The result, according to the company, is monthly reach across 86% of the U.S. population - over 300 million."
"Still, reach alone won't make Amazon a true rival to The Trade Desk. Many of those inventory deals aren't exclusive, which limits how far the company can differentiate from other platforms. The real difference will come down to performance - how much more effective Amazon can make ad buying through its platform. That's where it believes it can start to chip away at The Trade Desk's lead. As W Media Research's principal and chief analyst Karsten Weide put it, Amazon Ads' main growth engine is CTV, The Trade Desk's main business. Almost half of TTD's revenue comes from CTV."
Amazon is positioning its demand-side platform as a backbone for buying ads across the open web rather than solely for its own inventory. The company has formed partnerships with publishers like Hearst and gained access to premium inventory from Netflix, NBCU, Disney, and Spotify, claiming monthly reach across 86% of the U.S. population. Many inventory deals are non-exclusive, which limits differentiation from other platforms. Amazon is pushing performance improvements using retail signals and ad-tech partners such as PubMatic, Index Exchange, and TripleLift, and is promoting lower platform fees, highlighting Programmatic Guaranteed fees as low as 1%.
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