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Amazon is launching a new privacy tool for advertisers that will compete with Google and data companies.
The e-commerce giant plans to roll out a data clean room for advertisers in Europe as part of its preparations for the European Union’s upcoming legislation, known as the Digital Markets Act, according to a blog post published on January 31.
The clean room will allow advertisers to independently scrutinize the performance of their campaigns using Amazon data, the company said in a post. An Amazon spokesperson declined to say whether the tool would be available in the United States.
The DMA came into force on March 6 and aims to eliminate anti-competitive behavior by tech giants that the EU determines have a dominant market share, such as Amazon, Meta and Alphabet. Amazon’s data clean room will be available to all advertisers running campaigns in Europe, including US-based companies.
Amazon has a clean room called Amazon Marketing Cloud that is available to AWS customers, but this new cloud is different because it is only intended for advertising use cases and companies do not need to be AWS customers to use it. Masu.
Amazon’s privacy-compliant tools compete with Google’s Ads Data Hub and clean rooms run by independent companies such as Snowflake, LiveRamp, and InfoSum. As third-party cookies disappear, competition to make these services available is increasing. For example, LiveRamp recently agreed to acquire Habu for his $200 million to expand its data clean room tools.
Amazon Advertising’s new cleanroom further highlights the need for technology in the advertising industry.
“This is a symbol of how important clean rooms have become,” said advertising industry analyst Brian Wieser.
The move also reflects Amazon’s growing advertising ambitions as it continues to refine its advertising technology arsenal. Amazon will earn nearly $47 billion from advertising in 2023, an increase of 27% from the previous year.
Most of its revenue comes from search ads that appear on Amazon’s own website, but the e-commerce giant also supports advertisers with a demand-side platform that targets ads on publishers’ websites and apps. By marketing, they are aiming for a bigger budget.
To increase its advertising revenue, Amazon is trying to sell ads that appear on its website and the so-called open web. But as third-party cookies are disappearing, Amazon needs to offer tools like Clean Room that help advertisers target and measure ads using their own data.
In addition to Clean Room, starting March 6, Amazon will also provide advertisers with a new report that shows how much they pay to Amazon and other digital publishers to advertise with them.
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