Amazon Advertising Explained: What It Is, How It Works, and Why It Matters
Every brand faces the same challenge: audiences are harder to reach, data is harder to trust, and budgets must work twice as hard to make an impact.
And now, as some browsers are removing third-party cookies and traditional targeting loses precision, one platform has built a significant advantage that you can leverage. Amazon. Now the third-largest digital ad player globally, behind Google and Meta, Amazon holds something that the others don’t: verified, first-party shopper data.
For agencies and local media companies, understanding how to harness Amazon’s advertising ecosystem is no longer optional; it’s essential for staying competitive. This beginner’s guide breaks down how Amazon advertising works, the types of products you can tap into, provides examples, and explains why Amazon is becoming an essential piece of a modern digital marketing strategy.
What is Amazon Advertising?
Amazon advertising is the umbrella for all advertising solutions across the Amazon ecosystem. This includes sponsored product listings, display, video, and its demand-side platform (DSP). While sponsored advertisements target shoppers within Amazon’s marketplace, Amazon’s DSP extends reach across the web, streaming, and apps—allowing advertisers to engage verified Amazon users wherever they spend time.
The Power of Amazon’s First-Party Data
Amazon’s first-party data has become one of the most valuable tools in digital advertising, and for good reason. It’s built from real consumer behavior, not assumptions or third-party sources. Every click, search, purchase, and stream across Amazon’s platforms contributes to a rich, verified understanding of what people actually do, not just what they say they’ll do.
The level of insight through the first-party data gives you an unmatched advantage. Instead of relying on broad or inferred audiences, you can:
- Build high-intent audiences based on verified shopping, browsing, and viewing behavior.
- Eliminate wasted impressions by reaching actively in-market consumers.
- Deliver personalized, measurable campaigns that reflect real customer intent.
For example, Amazon’s first-party data can help a local retailer target shoppers who recently searched for home decor, or an auto dealer reach people exploring SUV models. These insights extend far beyond demographics; they tap into the underlying reasons behind consumer behavior.
What’s an Example of Amazon Advertising?
Let’s use a local furniture store as an example. They’re competing against national retailers and online brands that might have bigger budgets, but they have something those brands don’t: proximity, local trust, and personalized service. With Amazon advertising products, they can use data and premium placements to amplify that advantage.
Amazon Display advertising
This local furniture store can reach shoppers who have recently browsed home decor, furniture, or renovation products on Amazon within the last 30 days. By tapping into Amazon’s first-party shopper data, these ads reach verified in-market consumers, not just broad audiences. Imagine your store’s new “Fall Living Room Collection” appearing to someone who just viewed sectional sofas or lighting fixtures online. That’s the level of precision in targeting that you can get through Amazon advertising.
Amazon Streaming TV advertising
If you’re looking to build brand awareness through premium streaming placements, such as Prime Video or Disney+, advertising on streaming TV platforms like Amazon is essential. With compelling creative elements, such as a video showcasing craftsmanship, free delivery, or the custom design services the store offers, you can create emotional connections during high-attention moments.
Amazon audience targeting
With Amazon advertising, you can re-engage website visitors or previous campaign viewers with special offers, financing plans, or seasonal promotions. These mid-to-lower funnel tactics remind interested shoppers to come back when they’re close to making a purchase decision.
Together, this approach ensures that every dollar spent works harder and can create multiple touchpoints that nurture the customer journey from awareness to conversion. And because Amazon’s first-party data ties these audiences together across formats, the furniture store can benefit from consistent targeting, transparency, and measurable return on investment.
Our digital experts and partner success teams at AdCellerant can help you create a product mix that works best for your desired outcomes, or we can help you identify and pitch new verticals where Amazon’s product suite can be applied. We are always available to be a white-labeled member of your team.
Why Amazon Advertising Matters for Agencies and Media Companies
Amazon’s advertising ecosystem gives you the competitive advantage. By offering inventory and targeting capabilities that you can’t get elsewhere, you can capitalize on this compared to your competitors.
By running Amazon advertising campaigns through a digital marketing technology partner like AdCellerant, you unlock:
- Exclusive inventory access. Reach premium audiences across Prime Video, IMDb, Twitch, Disney+, and HBO—all within Amazon’s brand-safe environment. These placements capture attention in the moments that matter most, from binge-worthy entertainment to real-time live streams.
- Performance transparency. Get complete clarity into how your campaigns are performing with Amazon products—our Ui.Marketing platform includes easy-to-read reporting charts that visualize all the campaign metrics you need to help you understand reach, engagement, ROI, and more.
- Hands-on optimization. We handle all aspects of your campaign setup, pacing, and optimizations, allowing you to focus more on your clients and strategy, rather than spending time on manual campaign setup and execution. Every campaign is backed by our data-driven approach, ensuring it performs effectively.
Full-service, white-labeled partnership. From strategy to post-campaign insights, the AdCellerant team is here to help guide you every step of the way. Whether you’re identifying the right audience segments, wanting to test creative, or tapping into new opportunities, handling tough objections from your clients, our team acts as one of your white-labeled team members to help you achieve results that build long-term client confidence.
Full-service, white-labeled partnership. “For many agencies and local media companies, the biggest challenge isn’t getting access to Amazon’s advertising inventory—it’s understanding how to use that data effectively,” said Colin Wright, Advertising Product Manager at AdCellerant. “That’s where we come in. Our goal is to make the complexity simple so that partners can focus on results instead of the setup.”
Together, AdCellerant’s expertise and digital marketing technology platform, combined with Amazon’s products, create a powerful combination.
Getting Started with Amazon Advertising
New to Amazon’s advertising ecosystem? Start by learning which campaign types best fit your advertisers, how to use first-party data for precision targeting, and where Amazon DSP fits into your digital mix. Amazon is growing fast, and so can your advertisers. Let’s talk about how we can help you bring Amazon’s full potential to your clients’ digital advertising strategy.
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