Dive Insight:
Amazon Retail Ad Service shows the e-commerce giant extending its proven solutions to other retailers that want to get in on a lucrative market without the costly and complicated process of standing up ad tech. The move stands to disrupt the ecosystem of third-party vendors that have jumped on the booming retail media opportunity, seeking to help retailers establish the infrastructure necessary to succeed in an increasingly competitive category.
Amazon has served as the model for retailers aspiring to scale up ad businesses reliant on first-party shopper data, commonly referred to as retail media networks within the industry. The company’s roots in tech and e-commerce have given it a leg up in developing sophisticated digital marketing tools that can come with steep learning curves for traditional brick-and-mortar stores.
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