Amazon Ads: Addressing the Trust Challenge
Amazon’s multifaceted role as a marketplace operator, seller, and advertising platform creates a persistent trust challenge for advertisers. This conflict of interest has become more pronounced as Amazon rapidly expands its advertising business, raising questions about fairness and transparency in how ad budgets are allocated across its properties and external channels.
The DSP Dilemma: O&O vs. Off-Platform Outcomes
Advertisers frequently perceive Amazon’s Demand-Side Platform (DSP) as favoring its owned-and-operated (O&O) inventory, which includes Amazon’s own sites and apps. This preference stems from the advantage Amazon gains with its extensive first-party shopper data and the closed feedback loop for sales occurring within its ecosystem. On-Amazon conversions are easier to track and attribute, making O&O inventory appear less risky and more cost-effective. However, this situation poses challenges for brands aiming to drive conversions beyond Amazon’s platforms.
Amazon’s Proactive Steps for Transparency and Reach
In response to these concerns, Amazon has introduced several initiatives intended to mitigate self-preferencing perceptions and broaden the DSP’s capability. These measures include Amazon Publisher Direct and Certified Supply Exchange, which offer advertisers access to premium third-party inventory. Additionally, Amazon supports programmatic guaranteed deals and allows advertisers the option to exclude O&O properties altogether. Expanded distribution partnerships further extend the DSP’s reach beyond Amazon’s owned assets, helping advertisers diversify their media mix.
Verifying Performance with Amazon Marketing Cloud
Amazon Marketing Cloud (AMC) serves as a privacy-compliant measurement layer enabling advertisers to analyze campaign performance across on- and off-Amazon channels. By integrating Amazon’s data signals with a brand’s own datasets and third-party information, AMC provides a more holistic view of advertising outcomes. This capability offers advertisers a way to objectively assess whether campaigns are delivering neutral results across various inventory sources.
The Evolving Landscape of Amazon Advertising
While skepticism towards Amazon’s advertising ecosystem remains, the company has taken substantive steps to offer advertisers tools for greater evaluation and control. Successful advertisers must utilize these resources to validate performance and understand Amazon’s complex role within their retail media strategies. This evolving environment underscores the importance of an informed and measured approach when working with Amazon Ads.
