In 2019, Amazon Publisher Services rose in the ranks, posing a threat to Google. In fact, by 2022, it is expected to capture 9.7% of the US advertising industry. We’ll look at how publishers can enter into Amazon programmatic advertising, as well as the services offered and how they work, in this article.
What is Amazon Publisher Services (APS) and how does it work?
Amazon Publisher Services (APS) is a set of tools and cloud services designed to help web and app publishers start, grow, and monetize their digital enterprises. It’s a cloud-based marketplace that combines all of Amazon’s publishing technologies into one package.
The Transparent Ad Marketplaces (TAM), the Unified Ad Marketplace (UAM), and Shopping Insight are all part of Amazon Publisher Services. With a single call to Amazon’s cloud-based marketplace, publishers may increase income while reducing latency. The increase in revenue is attributable to a large, competitive bidding field as well as improved transparency for publishers. As a result, publishers will have a better understanding of which marketing methods produce the best outcomes.
Header bidding services are used by both the Transparent Ad Marketplace and the Unified Marketplace. Header bidding is a system that allows a publisher to concurrently offer its inventory of available ad spots to a number of ad exchanges, allowing them to compete for those places. Advertisers can compete for extremely specialised and prized ad spots using this high-speed digital bidding technology, while publishers can better monetize their content.
Let’s take an closer look at the services available, who they’re intended for, and how publishers might take benefit of them.
What are the steps for publishers to get started with Amazon programmatic advertising?
Publishers can use the Transparent Ad Marketplace or the Universal Ad Marketplace to join Amazon’s programmatic advertising platform. Each has its owns set of benefits and advantages. TAM services are aimed at bigger, corporate publishers, and UAM services are aimed at small and mid-sized publishers.
The most significant distinction between Amazon UAM and TAM is how each handles SSPs for publishers. A supply-side platform, or SSP, is a software solution for automating the sale of ad space. SSPs are used by publishers to sell ad space in a number of formats, such as text and video adverts.
The automated feature of selling space with an SSP partner allows a publisher to get competitive bids inside an ad marketplace, allowing them to enhance their site’s revenue without having to raise the quantity of ads they run.
TAM assumes that the publisher is large and well-established enough to have developed individual partnerships with SSPs and just wants to centralise programmatic bidding in their ad marketplace. Users of UAM, on the other hand, have access to both Amazon ads for publishers and a host of SSPs that work with Amazon, allowing Amazon to manage all interactions with the SSPs and the publisher.
Amazon Provides Services to Publishers
For larger publishers, Amazon TAM is the favoured advertising platform. Similar to Google’s open bidding, it’s a server-side bidding tool for publishers.
The majority of larger publishers currently work with affiliates in the digital ad marketplace. They’re more likely to employ Amazon Publisher Services to gain access to Amazon-specific services and the unique Amazon ad marketplace, which they may combine with other header bidding services to increase revenue.
Because Amazon just provides as a centralised mechanism for these header bidding services, users of TAM will need to have existing contractual ties with all of their demand bid partners. Amazon has over 20 partners, including well-known companies like AppNexus, Facebook Audience Network, OpenX, RubiconProject, Smaatom, and SpotX. In addition, TAM users can turn off any bids they choose in real time.
Amazon TAM user’s have access to all auction data for transparency, allowing them to review bidders for each impression, bid CPMs, and the winner of each auction.
A single ad marketplace (UAM)
Because small and midsize publishers do not often have personal relationships with SSPs, Amazon UAM is a good fit for them. More SSPs imply more bids, which equals more revenue for publishers in theory. Publishers can use Amazon UAM to access an access of established SSPs, including District M, Oath, OpenX, Pubmatic, RhythmOne, and Rubicon, in addition to Amazon DSP (Demand Side Platform). Overall, this allows smaller publishers to participate in extremely competitive bidding without having to create individual connections with SSPs.
UAM also enables simple, centralised billing. Amazon makes a single payment every 60 days. There are, however, some costs associated. Any SSP’s prices are subject to a 10% transaction fee charged by UAM.
Users of UAM also have access to a comprehensive collection of reporting tools. Bid requests, impressions, and revenues are among the Amazon services. There are also a number of filters for more detailed information, including devices, sites, and price points.
Amazon Shopping Insights is also available to APS users. This application analyses aggregate data that can be analysed and studied using several types of customised criteria to help you understand how your audience interacts with Amazon.
Data from Buying Insights will provide you with a good view into your visitors’ shopping behaviour, allowing you to fine-tune your content to take advantage of their interests with greater granularity. You can also create reports to provide advertisers with a deeper insight of your readership and their purchasing habits. These reports can be used to compares segmented audiences based on the performance of inventory and the involvement of advertisers.
Data for Shopping Insights is collected on domains with at least 5000 unique visitors per day from Amazon’s first-party audience group. Only Amazon’s TAM users have access to Shopping Insights.
What Other advantages Come with Using Amazon Publisher Services?
Setting up an new digital account with APS allows for all bidding to be done with a single quick call to the Amazon cloud. Not only does this speed-up the bidding process, but it also frees up bandwidth on a publisher’s end, lowering latency even further.
The most significant benefit of APS, however, is that publishers can include Amazon as a bidder on published items. Amazon is the third most frequented site in the United States, with around 2.4 billion monthly visitors. As a result, having access to their bids is incredibly important.
Which Publishers Would Benefit from Amazon’s Publisher Services?
Only large to mid-sized publishers should use APS. Each of the two broad categories has its own set of standards and expectations. Because of the reasons listed below, APS is best suited to large publishers, as their reach into the midrange publisher market is limited. Mid-sized publishers, on the other hand, can benefit from APS if they qualify.
Publishers on a large scale
TAM is a perfect solution for large-scale publishers who already have and maintain contractual ties with demand partners. Server-side multi-slot header bidding is available from TAM. Its cloud-based, single-call architecture reduces latency and gives it access to Amazon as a bidder. It also has a superior, consolidated reporting and analysis system that works well with the majority of large demand partners.
Publishers of a medium size
While Amazon does offer mid-sized publishers some access to its APS platform, the most important thing to remember is that UAM is by invitation only. As a result, access to their ad marketplace may be impossible.
According to Amazon, UAM is primarily intended for publishers who use Google Ad Manager as their ad server. UAM offers a multitude of reporting options, streamlined billing, and access to both Amazon advertisements and other SSPs, assuming digital publishers qualify. It should also be noted that UAM charges participating SSPs a processing fee of 10% of bid prices.
Small-scale publishing publishers
Simply said, Amazon does not work with small publishers and has shown no intention in doing so in the future. Small publishers are advised to look for ways to monetize their digital content elsewhere.
How to Use Amazon Publisher Services to Get Started
Amazon Publisher Services are currently only available in a few countries, including the United States. If you’re a large-scale publisher, getting started with APS is simple. You’re ready to go if you’ve set up multi-header bidding and have a current relationship with your demand partners. Fill out the Contacts Form to get started. An Amazon employee will contact you once you submit it to go through the details.
Not all publishers are eligible to use APS; eligibility is determined by the publisher’s size, niche, and geographic location. As previously noted, smaller, mid-size publishers will require a personal invitation from Amazon to participate in APS.
If You Do not Qualify for Amazon Publisher Services, What Should You Do?
If your small business does not meet the requirements for APS, there are other options for monetizing your web content.
1. AdSense by Google
Google AdSense provides a far lower entry barrier and a near-100 percent advertising fill rate. Furthermore, the compensation is reasonable. Google AI is also great at displaying relevant adverts to your reader demographic. If you are still not convinced, have an look at our list of the finest Adsense alternatives.
AT&T’s Xandr boasts one of the most extensive collections of digital, film, and television properties. In 2019, Xander launched Community, an video marketplace that connects video advertisers and publishers to help publishers get better yields on their inventory.
3. Exchange of Indexes
Index Exchange sets itself apart from the competition not by volume, but by quality. They are very careful about which advertisers they accept into their system, which means that advertisers have been thoroughly vetted before being permitted to participate in auctions.
4. Verizon Media
What was previously AOL is now Verizon Media. They’re noted for their high return CPMs and quality ad filtering. Advertisers can choose from a variety of video units.
OpenX is a platform that is genuinely open. The OpenX Exchange is used by over 1,500 publishers to monetize their businesses, and 34,000 advertisers use it to reach and engage their target consumer audiences. It boasts a daily transaction volume of 1.5 trillion bids. That is, once again, per day. As a result, OpenX is one of the undisputed heavyweights in the bidding market.
Amazon Publisher Services can help you with all of your publishing needs.
For mid- to large-scale publishers, APS is an appropriate choice. Publishers do not need to adjust their relationship with demand partners because APS has made it easier for them to manage their service by providing a single platform.
Mid-size publishers, on the other advantage, can only join APS by invitation. Despite the fact that it may benefit mid-sized enterprises, Amazon publisher services is not actively pursuing them. As a result, mid-sized and smaller firms should think about other options for advertising. Companies, such as Google, have demonstrated a willingness to work with smaller businesses and provide numerous opportunities to take advantage of server-side ad bidding.