Amazon’s ad tech has transformed from a direct single sales channel with owned and operated inventory into a sophisticated, full-funnel advertising solution for most of a brand’s media buying — notably Streaming TV. This evolution presents an unprecedented opportunity for marketers of brands endemic to Amazon and is comprised of two critical components:

1. Data collaboration technology with Amazon Marketing Cloud (AMC) and AWS Clean Rooms

2. Expansion of 3rd Party premium TV supply within the DSP

AMC and AWS Clean Rooms' data collaboration capabilities now allow marketers to securely combine their own 1P transaction signals with Amazon transaction signals. For many brands, combining these two channels will represent a greater percentage of their total sales than any single retailer or any combination of channels (since retailers do not collaborate with each other). This results in a comprehensive, unified commerce identity offering an unparalleled signal for audience enrichment and deterministic measurement.

Perhaps even more compelling is what’s happening on the supply side. Amazon’s DSP has historically been considered a tool for running display and video ads within the Amazon ecosystem and third-party publishers for display ads via Amazon’s Publisher Network (APN). But, as Amazon has set its sights on TV advertising dominance, it has done a remarkable job of building out supply-side technology (through Amazon Publisher Cloud and its partnership with Magnite, as examples) and a supply desk team to provide marketers with access to top-tier TV inventory across major publishers like Disney, Paramount, and Max.

This expansion of TV supply is the most significant opportunity in Amazon’s ad tech, which no one is talking about, and it’s critical to understand its ramifications. Few people realize that one can build audiences and deterministically measure outcomes of TV campaigns in exactly the same way they can on 3P inventory (like Disney) as they can on Amazon-owned and operated inventory (like Prime Video). Even better, marketers can “double dip” in their upfront commitments. For instance, if a brand has committed to spending $100 on TV in the Amazon DSP and another $100 with Disney, buying Disney inventory with the Amazon DSP allows the marketer to meet both spending commitments simultaneously.

So, on the data side (for many endemic brands), if one were to collaborate their 1P signals with Amazon, the combined signals are, by definition, greater than any other potential channel. And, on the supply side, since the Amazon DSP is the only place to buy its own inventory, and the Amazon DSP provides marketers with as much 3P supply as any other DSP, it also has access to the mostdiverse set of premium TV inventory. This raises an important question: why should marketers continue buying on any other DSP?

Consolidating media buys into a single platform provides two key advantages. First, deduplicated identity minimizes audience overlap, reducing wasted impressions and improving efficiency by reaching each consumer only once across multiple placements. Second, enhanced scale for measurement. The more impressions and reach a campaign generates within Amazon’s ecosystem, the greater the opportunity for Amazon’s ad tech to measure meaningful business outcomes.

The case for shifting budgets away from other DSPs like DV360 and The Trade Desk to Amazon has never been stronger. Amazon has an unfair advantage compared to their competitors: they have a demonstrably stronger signal and a more diverse and exclusive supply. The challenge for Amazon is to unify brand and e-commerce teams - and the budgets they manage. These are people problems, and they will take time. But once achieved, for many brands, the opportunity for Amazon’s TV advertising dominance will be unmatched.