Some advertisers are increasing their Amazon spending at the expense of Meta and Google. The shift is being driven by Amazon’s expanding ad business, which is gaining traction with advertisers. According to Lauren Johnson, CEO of Envision Horizons, advertisers are finding success using Amazon’s data to target new audiences. Amazon is investing in privacy-focused technology, such as a data clean room, to attract more advertisers.
In recent months, Amazon has enhanced its demand-side platform to better compete with other DSPs like Google and The Trade Desk. Advertisers are also using the DSP to buy Prime Video ads. Additionally, Amazon is pitching its data clean room as a solution for the decline of third-party cookies, allowing advertisers to target audiences based on Amazon’s first-party data.
Mark Power, CEO of Podean, notes that these new features are drawing ad budgets away from Meta and Google. Brands are now increasing their Amazon ad budgets to represent a larger portion of their sales, with a focus on Amazon’s adtech formats.
Amazon’s goal is to convince brands that its ads can drive brand awareness and sales using shopper data without third-party cookies. Advertisers appreciate Amazon’s ability to acquire new customers and are shifting budgets from Meta and Google to invest in Amazon’s ad products.
Overall, Amazon’s advanced ad tools and improved sales support are helping the platform attract more advertising dollars from big brands. The platform is now seen as a viable option for growing brand awareness and affinity among advertisers.