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What Amazon Advertising Means for the Industry

18 Sep 2018 Marlea Clark

in Media, Digital, Amazon

Amazon Money

In a move to streamline advertising, Amazon is restructuring its services and eliminating those acronyms that advertisers have grown accustomed to. Say goodbye to AMS, AMG, and AAP; welcome to the world, Amazon Advertising.

What's Happening?
It's not about acronyms, of course. Shortly after hitting the $1 trillion valuation mark, Amazon announced that, while the ad products it offers through its current services (Amazon Marketing Services, Amazon Media Group, and Amazon Advertising Platform) will still function similarly, they will be consolidated under a single umbrella (Amazon Advertising).
What Does It Mean?
For years, Amazon has offered ad products under three different services (AMS, AMG, and AAP), making it difficult for brands to navigate the advertising ecosystem and manage their campaigns and dollars. Advertisers have been required to work with different entities depending on the ad product, without much guidance on how they work together, or which product will best suit their needs. Now, Amazon Advertising will house all available ad products, including its demand-side platform. What was formerly known as AAP will now be called Amazon’s DSP.
Read Amazon’s full statement and breakdown of the product portfolio here.
Why Now?
Rina Yashayeva, VP of Marketplace Strategy and a veteran of Amazon, weighed in on the restructure and what it will mean for brands, marketers, agencies, and Amazon itself:

“The consolidation of Amazon Marketing Services, Amazon Media Group and Amazon Advertising Platform is a very smart business decision that will benefit all parties. Between self-service AMS campaigns that essentially any vendor can leverage since they are PPC (pay-per-click), and traffic-driving AMG campaigns for the higher-tiered brands, there was always a lot—almost too much—to choose from, ultimately leading to vendor confusion.

Amazon is working towards simplification. This consolidation will allow brands and vendors to easily understand how to advertise and manage campaigns on Amazon. It will also make it a lot easier for media buyers and planners to determine where to spend valuable dollars.”

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