Amazon is testing a new service that lets advertisers leverage users’ Amazon search data to retarget them on third-party websites through Amazon DSP, Adexchanger reports. It’s the first time we’ve seen Amazon use its proprietary search data to grow advertising revenue generated on non-Amazon-owned properties.
Search data is interesting because it is a strong signal for current purchase intent. As Amazon’s share of first-stop shopping searches grows, search retargeting will create another front on which Amazon can compete with Google for search advertising spend.
While the test is still limited in that advertisers can’t apply black lists, thus leading some agencies to hold off for now due to brand safety reasons, adding search data to the mix appears to be the next step in Amazon DSP’s evolving retargeting capabilities. Amazon already allows advertisers to retarget based on views of product detail pages.
Amazon’s advertising business hit an approximate $10 billion run rate in the third quarter of 2018. Investing in new ad products and applying its site search data to new advertising functionality shows that Amazon foresees advertising revenue growth opportunities on multiple fronts in the coming year.