Amazon is selling its retail media ad technology to other merchants 

Amazon Ads debuts Amazon Retail Ad Service, which allows other retailers to stand up their own retail media networks.  

Amazon generated nearly $47 billion in advertising revenue in 2023. And in January, Amazon announced that it is allowing other retailers to use the technology that powers this lucrative experience.  

The Amazon Retail Ad Service allows online retailers to sell advertising spots on their own website on the search, browse and product pages. The ads are for products that these retailers sell, and brands purchase the advertising to capture the attention of shoppers in the environment where they are shopping. 

Vitamin merchant iHerb, mass merchant Oriental Trading Co., and online grocer Weee! are currently piloting the ad technology on their own sites. Apparel merchant Tillys plans to launch it soon, according to Amazon.  

This offering is much like retail media networks which have become a fast-growing marketing channel for brands and revenue stream for retailers. Merchants including Target, Walmart, Nordstrom, The Home Depot, Best Buy, Macy’s and Lowe’s all have retail media networks.  

This announcement from Amazon allows merchants to buy Amazon’s technology instead of having to build their own in-house systems. 

Retailers determine where the ads are shown, how many ads and the creative format.  

“This innovative solution and proven technology allow us to deliver more relevant and personalized ads to our shoppers, enhancing their experience while driving stronger engagement and conversions,” said Neil Folgate, senior vice president of global marketing at iHerb, in the Amazon press release.   

In addition, retailers can choose to have their ad units available on the Amazon Ads console and APIs. This allows brands that advertise on Amazon.com to discover other retailers to advertise with, and makes it easy for the advertiser to manage their campaign across multiple retailers.  

For example, 1,200 brands that use Amazon ads also sell on iHerb, Folgate said. “This creates a frictionless opportunity for advertisers to connect with iHerb’s highly motivated audience and drive measurable results,” he said.