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Amazon Buys Its Way into Selling More Advertising

Amazon Buys Its Way into Selling More Advertising

Amazon announced today it is acquiring advertising solutions from Sizmek, which shares many customers with Amazon Advertising. CNBC said the deal comes as Amazon is a growing contender to take on the digital ad duopoly of Google and Facebook.

Geekwire noted, “One of Amazon’s main competitive advantages as it gears up to challenge the dominant digital advertising players Google and Facebook is the data it has on purchasing habits.”

AdAge said Sizmek had filed for bankruptcy at the end of March and had been looking for about $30 million for the ad serving technology, citing an unnamed source.

“Generally speaking, Sizmek’s ad server competes directly with Google’s Marketing Platform (formerly DoubleClick), which help marketers place digital ads and measure their effectiveness.,” AdAge reported. “There also aren’t many ad servers that exist within the market, especially not at the scale that Sizmek offered.”

Update 6/7/19: Chain Store Age says Amazon may not get acquire Sizmek’s ad server after all.

Amazon Advertising announcement follows:

Amazon is acquiring Sizmek Ad Server and Sizmek DCO
Sizmek will continue serving customers at the high standards they’ve come to expect

We’re excited to share that we’ve signed an agreement to acquire Sizmek Ad Server and Sizmek Dynamic Creative Optimization (DCO).

Sizmek and Amazon Advertising have many mutual customers, so we know how valued these proven solutions are to their customer base. Sizmek has been searching for a buyer for Sizmek Ad Server and Sizmek DCO, and we are both committed to continuing serving their customers at the high standards they’ve come to expect.

Once the deal closes, Sizmek Ad Server and Sizmek DCO will operate separately from Amazon Advertising for the time being. We look forward to working with the team, and we’ll share more updates as we invent and create new opportunities to better serve our advertisers over time.

SOURCE: Amazon Advertising Blog Post

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Ina Steiner
Ina Steiner
Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). She is a member of the Online News Association (Sep 2005 - present) and Investigative Reporters and Editors (Mar 2006 - present). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com. See disclosure at EcommerceBytes.com/disclosure/.