Amazon Ads strengthens retail media network as brands shift budgets to e-commerce advertising

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 1. Retail Media Driving Amazon’s Ad Growth

Amazon’s advertising business has become a major revenue engine, driven by ads tied directly to its e‑commerce marketplace (search listings, product pages, shopping results) and expanding into entertainment and streaming.

  • In 2025, Amazon Ads generated over $68 billion in ad revenue, growing about 22% year‑over‑year. (Marketing Dive)
  • The company increasingly pushes a full‑funnel advertising strategy that spans product discovery to purchase, including sponsored products, display ads, video ads on Prime Video, and advanced DSP (demand‑side platform) capabilities. (Digiday)

This growth reflects a broader industry trend where retail media is capturing ad dollars that traditional formats — like social and display — once dominated, because ads on retailer platforms reach customers already in “buy mode.” (McKinsey & Company)

 2. New Retail Media Tools and Services

 Amazon Retail Ad Service

Amazon launched the Retail Ad Service, a new ad‑tech solution that lets other online retailers use Amazon’s advertising infrastructure to run ads on their own e‑commerce sites and apps. (Amazon Ads)

Key capabilities:

  • Retailers can serve contextual ads on search, browse, and product detail pages using Amazon’s machine‑learning models. (Amazon Ads)
  • Brands don’t need to sell on Amazon to run ads — they can advertise across participating retail sites. (Amazon Ads)
  • Detailed performance and reporting tools help advertisers track impressions, clicks, and ROAS for better measurement. (Amazon Ads)

This product extends Amazon’s retail media footprint into partner sites, allowing brands to reach customers outside Amazon’s marketplace but still leverage Amazon’s first‑party audience data.

 3. Expanded Ad Formats and Targeting

Amazon Ads continues developing next‑generation ad technology to help marketers reach authenticated shopping audiences with precision:

  • Enhanced Amazon DSP tools deliver full‑funnel reach — from awareness to conversion — across Amazon properties and third‑party publisher inventory. (US Press Center)
  • AI‑powered automation (Performance+, predictive insights, frequency controls) helps streamline campaign setup and optimize toward KPIs such as ROAS and cost per acquisition. (US Press Center)
  • Expanded placements include streaming, display, and interactive video ad formats that help brands tell richer stories across entertainment and e‑commerce environments. (Digiday)

These capabilities make Amazon Ads a more versatile advertising platform compared with traditional retail media networks that only sell sponsored products. (Digiday)

 4. Why Brands Are Shifting Budgets to E‑commerce Advertising

Several strategic forces are driving the shift:

 First‑Party Data and Shopper Intent

Retail media networks like Amazon’s provide access to first‑party shopper data, offering advertisers clearer insight into purchase intent and customer journeys — something that third‑party cookie deprecation and privacy changes have weakened in traditional programmatic channels. (McKinsey & Company)

 Closed‑Loop Attribution

Because retail platform ads are directly tied to actual purchases, brands can track ROAS and conversions more precisely than on social or display networks, which often rely on indirect measurement methods. (Reddit)

 Budget Reallocation

Industry research shows that retail media budgets are growing rapidly, with many marketers reallocating spend from social media, display, and search toward commerce platforms where ads happen closer to purchase. (McKinsey & Company)

 Industry Commentary

 On Retail Media’s Growing Importance

Retail media networks are recognized as a critical advertising frontier because they connect brands with shoppers who have already expressed intent. The rich first‑party insights and cross‑device tracking available on platforms like Amazon give advertisers more confidence in measurement and performance. (McKinsey & Company)

 On Amazon’s Strategy

“Amazon has gone from a marketplace with sponsored products to a comprehensive advertising ecosystem — spanning DSP, streaming ads, retail media services on partner sites, and full‑funnel audience tools.” — Industry analysts note that this evolution is changing how brands plan digital media. (Digiday)

 On Market Competition

Amazon’s dominance in retail media is pushing other commerce platforms (like Walmart Connect, Instacart Ads, and Target Roundel) to expand their own retail media offerings. The result is a highly competitive retail advertising landscape where brands often use multiple networks to reach shoppers throughout the purchase journey. (The Drum)

 Key Takeaways

  • Retail media is rapidly gaining ad dollars as brands seek performance tied directly to e‑commerce outcomes. (McKinsey & Company)
  • Amazon is expanding its advertising ecosystem beyond its own marketplace — including tools that let other retailers leverage Amazon’s ad tech. (Amazon Ads)
  • New ad formats, first‑party data targeting, and AI‑driven full‑funnel tools are key reasons advertisers are shifting budgets. (US Press Center)
  • Amazon’s strategy blends commerce, entertainment, and programmatic capabilities, making it a major destination for brands looking to capture purchase‑intent audiences. (Digiday)

Amazon Ads strengthens retail media network as brands shift budgets to e‑commerce advertising — Case Studies and Industry Commentary

As brands increasingly move marketing spend into e‑commerce environments where ads can be tied directly to shopping behavior and conversion, Amazon Ads’ retail media network has become one of the fastest‑growing advertising platforms globally. Retail media gives brands access to first‑party shopper data and full‑funnel measurement — key advantages compared with traditional display or social advertising. (impact.com)

Below are real case studies of brands using Amazon Ads to drive measurable results, followed by industry comments explaining why so many marketers are shifting budgets toward Amazon’s retail media ecosystem.

 Case Studies: Brands Scaling with Amazon Ads

1. Global Snack Brand — 90 % ROAS Increase with Deep Shopping Insights

A major snack brand partnered with Amazon Marketing Cloud (AMC) and Amazon DSP to dive deep into long‑term shopper behavior (five years of purchase signals) and segment audiences based on purchase patterns. (Amazon Ads)

Strategy

  • Used Amazon’s retail purchase data and advanced analytics
  • Created behavioral segments (first‑time buyers, brand switchers, repeat shoppers)
  • Ran tailored Amazon DSP campaigns for each segment

Results

  • 90 % increase in return on ad spend (ROAS) compared with previous DSP performance
  • 26 % reduction in cost per thousand impressions (CPM)
  • 42 % new‑to‑brand rate among variety shoppers

Insight:
Leveraging deep shopper behavior and full‑funnel DSP targeting can unlock significant incremental value over traditional sponsored ads. (Amazon Ads)

2. Global Consumer Healthcare Brand — +153 % ROI with Full‑Funnel Retail Media

Haleon implemented a full‑funnel Amazon Ads strategy combining multiple ad formats — including video, display, and sponsored placements — to engage audiences throughout the purchase journey. (Amazon Ads)

Strategy

  • Combined Prime Video, sponsored ads, display, and other Amazon media
  • Measured impact across regions with rigorous reporting

Results

  • 153 % improvement in ROI for full‑funnel campaigns
  • 10× increase in page views for campaigns using 3–4 ad formats vs. 1–2
  • 10 % lift in offline sales, showing broader brand impact

Insight:
Full‑funnel retail media — not just bottom‑of‑funnel ads — can dramatically increase engagement and ROI across channels. (Amazon Ads)

3. Apparel Brand — Cross‑Channel Sales Attribution

An apparel brand leveraged Omnichannel Metrics (OCM) and Marketing Mix Modeling (MMM) to measure Amazon Ads’ impact beyond the marketplace. (Amazon Ads)

Strategy

  • Combined Amazon DSP with sponsored and display campaigns
  • Used MMM and OCM to track sales across Amazon and external channels

Results

  • 64 % of purchases attributed to Amazon Ads occurred off Amazon
  • 33 % of off‑Amazon sales showed a “brand halo effect,” meaning incremental sales beyond promoted categories
  • Strong validation that Amazon ads can drive brand growth both on and off the marketplace

Insight:
Amazon’s retail media network can influence customer purchases across the broader digital ecosystem, not just within Amazon. (Amazon Ads)

4. Smaller Brands — Real‑World eCommerce Growth Examples

Multiple brands using Amazon Ads alongside Fulfillment by Amazon (FBA) achieved strong growth:

  • A Brazilian honey liqueur brand tripled total sales during Prime Day and year‑end while maintaining a 9.6 ROAS by combining FBA service with Sponsored Products ads. (Amazon Ads)
  • A home décor company expanded into Mexico leveraging Sponsored ads and careful budget allocation to make retail‑media‑driven revenue account for over 60 % of its sales in that market. (Amazon Ads)
  • A water‑testing products brand improved efficiency by 21 % lower ACOS and 127 % total sales growth using real‑time insights from Amazon’s marketing streams. (Amazon Ads)

Insight:
Retail media platforms like Amazon Ads can deliver results for both large global brands and small‑to‑medium sellers by matching ads to shopper intent and optimizing in real time. (Amazon Ads)

 Industry Comments: Why Brands Are Shifting Budgets to Amazon Retail Media

 Amazon Is the Most Widely Used Retail Media Network

According to industry surveys, 86 % of marketers reported using Amazon as a retail media network, significantly more than competitors such as Walmart or Target. This dominance shows that many brands see value in retail media spend over traditional digital channels. (Digiday)

 Retail Media Reaches Shoppers at the Point of Purchase

Retail media networks like Amazon’s tap first‑party data — i.e., shoppers actively browsing and buying on a site — allowing ads to be precisely targeted based on actual purchase behavior. This close‑loop attribution gives advertisers clearer insight into ROAS and conversion outcomes compared with display or social ads that rely on estimated attribution models. (Forbes)

 AI‑Enhanced Creative and Full‑Funnel Tools Democratize Access

Experts note that Amazon’s expanding tools — including AI‑driven creative solutions and cross‑format ad studios — allow brands of all sizes to compete effectively. These tools reduce production barriers and help smaller advertisers tell engaging stories that resonate with shoppers in‑moment. (ETBrandEquity.com)

 Retail Media Is Reshaping the Advertising Landscape

Retail media networks are rapidly evolving into full media ecosystems that blend search, display, video, and analytics across channels. This shift empowers brands to influence consumers throughout the shopping journey — from awareness to final purchase — and is a major reason why digital ad budgets are migrating from traditional digital channels to retail media platforms such as Amazon’s. (Black Bear Media)

 Key Takeaways

Retail media is capturing more ad budgets as brands prioritize direct conversion and measurement. (Digiday)
Amazon Ads delivers strong ROI and sales lifts for both global brands and smaller sellers. (Amazon Ads)
Amazon’s first‑party data and full‑funnel capabilities help advertisers optimize across multiple touchpoints. (Amazon Ads)
Industry trends show retail media networks are reshaping the e‑commerce ad market, blending media and commerce in new ways. (Black Bear Media)

 

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