The Big Story: Amazon – From Third To First?

As much as Amazon’s advertising platform has grown in recent years, will it ever surpass Google or Facebook?

This week on The Big Story, the AdExchanger team looks at that question, and addresses some of the factors holding Amazon Advertising back – from availability of inventory, availability of data and the usability of its technology.

Of course, how Amazon values its advertising revenue is very different from how Google and Facebook value theirs – especially when one considers that at Amazon, advertising is a line of business rather than the line of business. So even though Amazon is likely aware of these issues, it might not be incented to devote its considerable resources toward solving them.

Put another way: Advertisers will keep using its platform, regardless of its clunky interface, or whether Amazon is activating the targeting mechanisms that ad buyers want.

One can clearly see, for instance, that buyers are still using Amazon’s DSP, which is among the top in consideration according to Advertiser Perceptions’ latest report. The gang also delves into that report.

In recent quarters, Amazon’s DSP has risen as a major challenger to Google’s. Most recently, The Trade Desk has also elevated itself in consideration.

We’ll look at how competition from Amazon and The Trade Desk have hit Google’s DSP, and why that might not be a bad thing for the search giant.

 

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