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Inside Amazon’s Plan to Overtake The Trade Desk and Google in Advertising

Sarah Johnson

Amazon is no longer just the “everything store.” It’s now one of the most powerful players in the digital advertising industry — and it has set its sights on rivals The Trade Desk and Google in a critical battleground: the demand-side platform (DSP) market.

With billions in ad revenue already flowing through its ecosystem, Amazon has been quietly transforming its DSP into a sophisticated, cost-effective alternative for advertisers. The result? The Trade Desk’s stock recently suffered its largest single-day drop ever — and Amazon’s rise shows no sign of slowing.

What Is a DSP, and Why Does It Matter?

A demand-side platform (DSP) is adtech software that lets advertisers automate their campaigns across websites, apps, and connected TV platforms. Google’s DV360 and The Trade Desk have long dominated the DSP landscape, but Amazon brings something unique:

For advertisers, this means better targeting and more measurable results at lower costs.

Amazon’s Bold Goal: DSP Domination

In 2022, Amazon’s advertising unit set a bold mission: overtake Google and The Trade Desk to become the No. 1 DSP worldwide.

By then, Amazon was already the third-largest digital ad seller globally, bringing in $31 billion in annual revenue, behind only Google and Meta. Its ads appeared not just in Amazon search results, but also on packaging, live sports broadcasts, and in-store displays at Whole Foods.

Now, Amazon wanted to take its treasure trove of consumer data beyond its own walls and into the broader internet.

How Amazon Revamped Its DSP

Amazon’s DSP has existed for years, but it was long considered clunky and difficult to use. Since 2021, Amazon has rebuilt its adtech stack from the ground up. Key moves included:

  • Hiring top adtech talent from Google, Meta, Roku, AOL, and AppNexus.

  • Fixing bugs and simplifying workflows — campaign setup now takes just 4 clicks, down from 75.

  • Integrating with Amazon Marketing Cloud (AMC), a “data clean room” that connects brand data with Amazon’s shopping insights.

  • Expanding into connected TV (CTV) with exclusive Prime Video ad inventory and partnerships with Disney and Roku.

  • Aggressively cutting DSP fees to as low as 1% (or even free for select clients).

The result is a platform that rivals — and in many cases surpasses — the tools offered by Google and The Trade Desk.

Why Advertisers Are Flocking to Amazon

Advertisers say Amazon’s unique combination of audience reach, exclusive inventory, and affordability is hard to beat.

  • Brands can target more than 8,000 audience segments through the DSP.

  • AMC can help identify shoppers who abandoned carts and retarget them effectively.

  • With Prime Video ads switched on by default for all users, Amazon could soon surpass YouTube in US smart TV ad sales.

As Daniel Wallis, CEO of Amazon Ads partner VOW, explained:

“AMC is a massive win for Amazon, and it’s only just starting.”

The Fee Advantage

One of Amazon’s biggest weapons is pricing.

  • Amazon’s DSP fees typically range from 4% to 8%, well below the industry average of 10–20%.

  • For major spenders, fees can drop as low as 1% or even zero.

In a market where agencies face pressure to prove ROI, these cost savings are pushing more advertisers toward Amazon.

The Trade Desk’s Challenge

The Trade Desk, long considered an adtech darling, now faces a critical moment.

  • Its market cap has fallen from $69 billion in 2024 to around $25 billion.

  • Its CEO, Jeff Green, insists Amazon isn’t a competitor — but industry insiders disagree.

  • Unlike The Trade Desk, which relies on the “open internet,” Amazon can leverage its own closed ecosystem of shoppers, streamers, and Prime subscribers.

As adtech veteran Brian O’Kelley noted:

“The Trade Desk isn’t even playing in the same ballgame.”

Why Google Should Worry Too

Google’s adtech empire is under pressure from antitrust rulings that could force it to divest key assets like Chrome and its ad exchange. Meanwhile, Amazon continues to build market share in both search advertising and CTV ads.

By combining its retail data, e-commerce dominance, and growing streaming platform, Amazon has positioned itself as a triple threat — a challenge even Google may struggle to counter.

Conclusion: The Sleeping Giant Awakens

Amazon’s advertising strategy is clear:

  • Leverage exclusive data and inventory.

  • Undercut rivals with lower fees.

  • Expand aggressively into connected TV and retail media.

The impact is already visible: The Trade Desk’s future is clouded, and Google is facing antitrust hurdles. If current trends continue, Amazon could soon dominate the global DSP market — reshaping digital advertising in the process.

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