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Amazon, which generated $2 billion in advertising revenue in Q1 2018, is in a powerful position as an advertiser, ad network, and a marketplace all at once. Amazon Advertising is maybe not so much known but powerful enough to get more attention in the future.

Digital Marketing is not anymore like traditional marketing. In the era of digital transformation happening everywhere, marketers want a proof of their investment. Dieter Hovorka

CTO, Co-founder, Skillz Middle East

Yet despite reports that Amazon made more revenue from ads than Snapchat and Twitter last year, most of the technology driving this growth remains a mystery. However, Amazon’s ad tech momentum is expanding within the industry and becoming more of an asset to the company.

Amazon is known to millions as a Whole Foods-acquiring, on-demand Cloud-providing (AWS), industry-disrupting juggernaut. And although it’s not as well known as an advertising platform right now, that’s changing fast in the near future.

Performance advertising software company Nanigans created an infographic that explains what Amazon’s various advertising services are and how brands are using them to serve ads both on Amazon properties and on the open Web.

AMAZON’S ADVERTISING SERVICES, AT A GLANCE

AMAZON MARKETING SERVICES (AMS)
Offers three ad products on a cost-per-click (CPC) basis: Sponsored Products, Headline Search Ads, and Product Display Ads. The first two products are keyword-targeted and appear on search results pages, while the third is for display ads and appears on search results pages and product detail pages.

AMAZON MEDIA GROUP (AMG)
In addition to premium display offerings for Amazon apps and sites, AMG allows advertisers to reach audiences on Kindle and Fire devices and across the web via the Amazon Advertising Platform (AAP) DSP.

AMAZON PUBLISHER SERVICES (APS)
are cloud services providing access to Amazon’s header bidding containers: UAM (Universal Ads Marketplace) and TAM (Transparent Ads Marketplace). UAM and TAM let other exchanges or SSPs bid on the same display ad inventory simultaneously.

Amazon Advertising tech may be flying under the radar, but with such rapid ad revenue growth (up 139% year-over-year) it’s on the path to being as ubiquitous as Google AdWords and Facebook Ads Manager.

Amazon is “in a powerful position as an advertiser, ad network, and a marketplace all at once,” the infographic states, noting that it’s “on the path to being as ubiquitous as Google AdWords and Facebook Ads Manager.”

To learn more about the inner workings of Amazon Advertising business, check out the infographic. Exchange your ideas with your peers and use our commenting section below.

The Inner Workings of Amazon Advertising Infographic
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