Inside Amazon's plan to clobber rivals The Trade Desk and Google in a key area of advertising

"Industry insiders say it's made gains on rivals The Trade Desk and Google. Earlier this month, The Trade Desk's stock cratered almost 40% and analysts blamed Amazon. The Trade Desk has a target on its back shaped like an Amazon logo. Earlier this month, The Trade Desk's stock cratered almost 40%, with analysts blaming intensifying competition from Amazon and uncertainty about whether Wall Street's once-favorite adtech darling could fight back. It was The Trade Desk's largest-ever one-day stock decline."

"In 2022, Amazon's advertising unit set a big, hairy goal: Overtake Google and The Trade Desk to operate the world's No. 1 demand-side platform. A demand-side platform, or DSP, is a sophisticated piece of adtech software that allows advertisers to automate their ad buys and target audiences across a range of websites, apps, and other platforms like TV. Google is the world's biggest advertising player, which means The Trade Desk was the most immediate in Amazon's line of sight."

"At that time, Amazon had already cemented itself as a major advertising player. A year earlier, it brought in $31 billion in ad revenue, behind only Google and Meta, as the third-biggest digital ad seller worldwide. Its ad business was fueled primarily by Amazon sellers jockeying for prime real estate as shoppers search Amazon.com for diapers and dog food. Beyond search, it brought ads to all corners of Amazon from its delivery packaging to its "Thursday Night Football" telecasts and within its Whole Foods stores attracting endemic (brands that sell on Amazon) and non-endemic advertisers alike."

Amazon is executing a multi-year strategy to become the world's leading demand-side platform and expand its adtech dominance. The company set a 2022 goal to overtake Google and The Trade Desk in DSP operations. Demand-side platforms enable advertisers to automate buys and target audiences across websites, apps, and TV. Intensifying Amazon competition coincided with The Trade Desk's nearly 40% one-day stock drop, which analysts attributed to Amazon's advances. Amazon generated about $31 billion in ad revenue a year earlier, ranking third behind Google and Meta. Amazon places ads across its ecosystem—from search and packaging to Thursday Night Football and Whole Foods—attracting both endemic and non-endemic brands.

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