The DMA becomes enforceable on March 6 and is meant to nix anticompetitive behavior from tech giants that the EU has determined has dominant marketshare, including Amazon, Meta, and Alphabet. Amazon’s data clean room will be available to any advertiser who runs campaigns in Europe, including US-based companies.
While Amazon has a clean room called Amazon Marketing Cloud available to AWS customers, this new one is different because it’s meant solely for advertising use cases, and because the companies that use it will not have to be AWS customers.
Amazon’s privacy-compliant tool competes with Google’s Ads Data Hub and clean rooms run by independent companies like Snowflake, LiveRamp, and InfoSum. There’s a growing race to have these offerings available as third-party cookies disappear. For instance, LiveRamp recently agreed to acquire Habu for $200 million to expand its data clean room tools.
Amazon Advertising’s new clean room further underscores the necessity of the technology in the ad industry.
“It’s symbolic about how important clean rooms have become,” said Brian Wieser, an advertising-industry analyst.
The move also reflects Amazon’s growing advertising ambitions as it continues to cultivate its stack of advertising technology. Amazon made nearly $47 billion from advertising in 2023, a 27% year-over-year increase.
Most of that money comes from search ads that appear on Amazon’s own website, but the e-commerce giant is gunning for bigger budgets by pitching advertisers on a demand-side platform that targets ads on publishers’ websites and apps.
To grow that ad revenue, Amazon is looking to sell ads that appear off its own website and on the so-called open web. But because third-party cookies are disappearing, Amazon needs to offer tools like clean rooms that help advertisers use their own data to target and measure ads.
In addition to the clean room, Amazon will also provide advertisers with new reports starting March 6 that show the fees that advertisers pay to Amazon and other digital publishers that run their ads.
Source link : https://www.businessinsider.com/amazon-to-launch-privacy-tool-for-advertisers-in-europe-2024-2
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Publish date : 2024-02-02 08:00:00
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