Online retail giant is reaping the rewards of header bidding thanks to its elite position as both an advertiser and an ad network, saving 30% in fees compared to its rivals, writes Claude Denton, co-founder and CTO at Nanigans. In addition, Amazon gets a slice of the ad transaction fees, and can undercut independent retailers with their own versions of top-selling products. The company has been able to do this because it owns more than half of all online advertising inventory on the web, according to Denton.
Online retail giant is reaping the rewards of header bidding thanks to its elite position as both an advertiser and an ad network, saving 30% in fees compared to its rivals, writes Claude Denton, co-founder and CTO at Nanigans. In addition, Amazon gets a slice of the ad transaction fees, and can undercut independent retailers with their own versions of top-selling products. Denton said there is no ready alternative to Amazon's advertising department, which has grown 60% year over year and could threaten the Google-Facebook ad duopoly.