Macquarie analysts on Friday highlighted the potential market expansion benefits of Amazon (NASDAQ:AMZN)'s newly announced Retail Ad Service.
The service is designed to offer smaller retailers the ability to run advertisements on their websites and applications using Amazon's advertising technology. Hosted on Amazon Web Services (AWS), the service will be integrated with Amazon Ads to feed advertisers into the system.
The launch of this service by Amazon is seen as a strategic move to extend its e-commerce influence beyond its own marketplace. While this initiative poses a new challenge to retail media specialists such as Criteo and Publicis Groupe (EPA:PUBP)'s Citrus Ads, Macquarie analysts believe it could also contribute to simplifying and enlarging the overall market.
In related news, The Trade Desk (NASDAQ:TTD) has recently acquired Sincera, a firm specializing in providing metadata for programmatic advertising transactions. This acquisition aims to enhance the understanding of data quality and the effectiveness of alternative IDs like The Trade Desk's UID2.
The combination of Amazon's expansion into retail advertising services and The Trade Desk's acquisition of Sincera underscores the ongoing evolution of the online advertising landscape. As companies continue to innovate, the market for internet advertising is set to become more accessible and efficient for players of all sizes.
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