New Amazon Retail Ad Service: What Vendors and Sellers Need to Know About Amazon's Latest Ad Tech

Amazon's latest announcement at CES 2025 introduced the Amazon Retail Ad Service, primarily benefiting 1P vendors who already sell their products across multiple retail channels. This new service allows other retailers to implement Amazon's advertising technology on their own ecommerce properties, creating new opportunities for brand exposure beyond Amazon's marketplace.

This announcement is already generating significant buzz in the retail media space. As Jeffrey Cohen, Amazon Ads Tech Evangelist, notes on LinkedIn: “Amazon Retail Ad Service leverages Amazon's proven ad-tech expertise to help retailers improve customer experiences, connect advertisers with more customers, and simplify campaign management across different retail platforms.”

Who Can Benefit?

This service is particularly valuable for 1P vendors (brands that sell directly to Amazon and other retailers) because:

• They already have existing relationships with multiple retailers
• Their products are already listed across various retail platforms
• They can now manage advertising across these channels through a unified system
• They maintain control over brand messaging across different retail platforms

What About 3P Sellers?

For third-party sellers who primarily sell on Amazon's marketplace, the immediate impact may be limited unless:

• You're exploring direct relationships with other retailers
• Your brand has grown to the point of considering a hybrid 1P/3P model
• You're planning to expand beyond Amazon's marketplace in the near future

Understanding Amazon Retail Ad Service

The platform offers several capabilities that align with enterprise-level brand needs:

• Contextual targeting powered by Amazon's machine learning models
• Real-time price and availability updates
• Customizable post-click experiences
• Unified campaign management across multiple retail properties
• Integration with existing Amazon Ads Console and API partners

Strategic Implications

David Hill, Product Marketing Leader at Amazon Ads, emphasizes the significance of this launch on LinkedIn: “This new solution helps US-based multi-brand retailers monetize their online store and app traffic, boosting product sales and ad revenue. It's a significant step forward in the retail media space."

For 1P Vendors

1. Immediate opportunities:
   • Centralized campaign management across multiple retailers
   • Consistent brand messaging across different platforms
   • Leveraged existing Amazon advertising expertise
   • Enhanced data insights across retail channels
2. Action items:
   • Audit current retail relationships
   • Evaluate budget allocation across retail partners
   • Prepare for cross-platform campaign management
   • Consider staffing needs for expanded advertising operations

For 3P Sellers

1. Future considerations:
   • Evaluate potential expansion into other retail channels
   • Consider if a hybrid 1P/3P model might benefit your brand
   • Monitor the program's evolution for future opportunities
   • Assess if direct retail relationships align with your growth strategy
2. Preparation steps:
   • Focus on building brand strength on Amazon
   • Document advertising strategies that could scale to other platforms
   • Consider trademark and brand registry status across markets
   • Build relationships with potential retail partners

Early Adoption Insights

The initial rollout includes partnerships with retailers like iHerb, Weee!, and Oriental Trading Company. These early participants demonstrate the system's appeal to established brands - for instance, iHerb reports that over 1,200 brands (primarily 1P vendors) already advertising on Amazon have shown interest in expanding to their platform.

Data Management and Privacy

Amazon has implemented clear data boundaries:

• Retailer data remains separate from Amazon's data
• Management occurs through dedicated AWS accounts
• Each retailer maintains control over their customer data
• Vendors can access campaign data without compromising retailer relationships

Future Implications

The announcement has sparked enthusiasm among industry leaders. Scott Ohsman, VP of Digital Commerce at Quickfire, LLC, comments on LinkedIn, “This will be big!” while other experts note the potential for transforming retail media networks.

For vendors and sellers considering this service, watch for:

• Expansion of retailer partnerships
• Enhanced cross-platform targeting capabilities
• New ad formats specific to different retail environments
• Improved attribution modeling across channels