Amazon Advertising's revenue reached nearly $47 billion last year, a 24% increase from the previous year, outpacing Facebook and Google's growth. eMarketer predicts Amazon's advertising revenue will exceed $67 billion by 2025.
At the Amazon Publisher Services' summit, Amazon announced new features across its product suite. A highlight was Signal IQ, an advertising ID service designed to help publishers and buyers address the void created by the discontinuation of third-party cookies.
Amazon Publisher Services expanded its Transparent Ad Marketplace (TAM) to support all streaming TV publishers. The Amazon Publisher Cloud was released from beta, offering advertisers direct access to ad space from major publishers, including a partnership with Omnicom Media Group.
New features were introduced to meet increasing privacy demands. These include Audience Collaborations, Automated Deal Curation, Omni Audiences, Integrations with third-party ID-providers starting with LiveRamp, and New in-flight performance metrics.
These initiatives are part of Amazon's strategy to attract more ad dollars by enabling advertisers to reach Amazon users beyond its own ecosystem. The Amazon Publisher Cloud is crucial to this strategy as it aims to narrow the performance gap between ads on Amazon and those on publisher sites.
Amazon CEO Andy Jassy emphasized the importance of the high-growth, high-margin ads business in driving the next phase of revenue and profit growth. Amazon has made significant strides in this area, including making ad tech a larger part of its pitch to advertisers, launching its own machine learning buying tech called Performance+, and introducing ads to its Prime Video service.
