Link: Amazon is selling the tech behind its $50 billion ad business to other retailers

Amazon is set to expand its already substantial advertising revenue by offering its ad technology to other retailers. This move allows Amazon to leverage its $50 billion ad business beyond its own platform, as highlighted by Adweek.

The new Retail Ad Service will enable external online retailers to display contextually relevant ads using Amazon's sophisticated ad technology. This technology is based on machine learning models trained with extensive shopping data.

Retailers partnering with Amazon will also gain access to its vast array of advertising clients. This integration means ads from companies already using Amazon’s system could appear on various third-party websites.

Additionally, this service will increase Amazon’s profits from retail media advertising, even when consumer purchases occur off its site. It also potentially expands Amazon's data collection, which might attract scrutiny from regulatory bodies like the FTC.

Amazon's strategy mirrors the approach it took with Amazon Web Services, which was originally developed to support its own online operations. CNBC notes that Amazon later monetized AWS by providing infrastructure services to other businesses.

This development indicates Amazon's ongoing push to dominate not just retail but the broader digital advertising landscape. #

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