Amazon Is Staffing Up to Build New Ad Products for Publishers
Introduction:
In a move that signals a major expansion into the advertising industry, Amazon has unveiled a new team called “PubTech” under Amazon Ads. With 11 job postings already live, PubTech aims to develop a supply-side platform (SSP) specifically tailored for publishers, empowering them to sell programmatic ads more efficiently.
The Significance of an SSP in the Ad Tech Landscape:
An SSP serves as a software solution for publishers, enabling them to sell programmatic ads. Programmatic advertising, which involves the automated buying and selling of digital ad space, allows for real-time bidding and optimization. Amazon’s venture into building an SSP underscores its commitment to enhancing the monetization capabilities of publishers.
Job Postings Reveal Amazon’s Ambitions for PubTech:
The job postings for PubTech provide insights into Amazon’s aspirations for this initiative. One position, a Software Engineer, highlights the team’s goal of building cutting-edge supply-side technology and pioneering innovative experiences for publishers, with a focus on developing ad-selling solutions for video, audio, and display ads.
Another job listing, for a Principal Product Manager at Twitch, reveals the team’s intention to leverage PubTech’s SSP in developing a vision and strategy for Twitch ad products. The successful candidate will be responsible for driving the product roadmap and ensuring the successful integration of PubTech’s SSP into Twitch’s advertising ecosystem.
Amazon’s Focus on Its Own Properties for Ad Revenue:
Amazon’s PubTech team is tasked with building products specifically for Amazon properties, including Twitch, FireTV, and Freevee. These platforms offer significant ad revenue potential, and Amazon aims to optimize monetization opportunities within its own ecosystem.
Distinction from Amazon Publisher Services:
It’s important to distinguish PubTech from Amazon Publisher Services, a separate unit that focuses on providing ad-selling solutions to third-party publishers. PubTech, in contrast, targets publishers that work with third-party SSPs.
Success Stories of Publishers Working with Amazon’s Services:
Publishers who have collaborated with Amazon Publisher Services have expressed positive experiences, citing personalized support, expertise, and improved ad revenue performance as key benefits.
Amazon’s Entry into the SSP Market: Potential Implications:
Amazon’s foray into the SSP market is likely to intensify competition with Google, the dominant player in ad tech, as well as established third-party SSPs like Magnite, Pubmatic, OpenX, Index Exchange, and Microsoft-owned Xandr. This move underscores the blurring lines between advertiser-focused and publisher-focused ad tech solutions.
Broadening Amazon’s Ad Business Beyond Search Ads:
Traditionally, Amazon’s ad business has revolved around search ads, generating significant revenue. However, the company recognizes the potential for growth in publisher-focused ad tech, presenting an opportunity to diversify its ad revenue streams.
Correction: Clarification on SSP’s Intended Purpose:
In response to the initial article, Amazon clarified that the SSP being developed by PubTech is exclusively intended for its own properties and not for third-party publishers. The company acknowledged the error in the original job postings and committed to amending them accordingly.
Conclusion:
Amazon’s expansion into the ad tech landscape through its PubTech initiative signals a strategic shift in its advertising business. The company aims to empower publishers within its own ecosystem with a robust SSP solution, while also recognizing the potential for growth in publisher-focused ad tech beyond its own properties. As Amazon continues to invest in this area, it will be fascinating to see how the company’s efforts impact the broader ad tech industry.
Call to Action: If you’re a publisher looking to optimize your ad revenue, stay tuned for updates on Amazon’s PubTech initiative. With its focus on innovation and empowering publishers, PubTech could be a game-changer in the ad tech industry.
