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Amazon takes on Google with new ad features

The news: Amazon unveiled a slew of ad features and capabilities at its unBoxed 2022 conference as it looks to challenge the advertising dominance of Google and Meta.

Amazon’s latest offerings: Some key updates include:

  • Rewarded Sponsored Display ads, which let brands offer Amazon credit to shoppers who purchase the featured product
  • Sponsored Display ads for companies that don’t sell on Amazon’s platform, such as restaurants or gyms. This feature is currently only available to select US advertisers on Twitch.
  • Digital Signage ads, which allow brands to buy out-of-home placements in Amazon Fresh stores programmatically via Amazon DSP
  • Sponsored Display video creative to make it easier for small- and medium-sized brands to create and measure video campaigns

Zooming out: Advertising has become an increasingly important revenue generator for Amazon as it tries to offset slowing ecommerce growth and ballooning costs. The company made more money from advertising in Q2 than it did from Prime membership fees.

  • By expanding the types of ads available on its platform, as well as the brands that can access them, Amazon is looking to shore up its appeal to advertisers looking for an alternative to cookie-led advertising.
  • The updates also keep Amazon a step ahead of its competitors in the retail media advertising space, although Walmart and others are also making enhancements to improve return on ad spend and reduce costs per click.

This article originally appeared in Insider Intelligence's Retail & Ecommerce Briefing—a daily recap of top stories reshaping the retail industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.