Episode Details

Amazon is extending its DSP into ChatGPT, giving brands that already advertise through Amazon Ads a new way to reach consumers inside the ChatGPT app. But the headline isn’t actually the most interesting part of this announcement. The bigger story is what Amazon is doing with its DSP, and why it increasingly looks less like an Amazon advertising product and more like an advertising aggregation strategy.

In this episode, I’m sharing Jo Lambadjieva's analysis of the Amazon–OpenAI advertising deal, along with a few of my own takeaways for enterprise brands and retailers operating retail media networks. Points raised include Amazon’s growing offsite advertising footprint, the role of first-party shopping data, why measurement could determine the future of AI advertising, and what this move means for retailers that may want to participate in ChatGPT advertising themselves.

This episode is sponsored by GrowthLoop

Timeline

[01:00] - Amazon Ads placements inside the ChatGPT app and why the mechanism matters more than the headline

[02:15] - Why Amazon is positioning itself as the “buying pipe” across an expanding range of advertising surfaces

[03:35] - Amazon’s two-part DSP pitch: lower fees and powerful first-party shopping data

[05:00] - What deeper Amazon advertising concentration could mean for sellers and advertisers

[05:37] - Why measurement and credible performance attribution will be critical for advertising on AI surfaces

[08:05] - Could other retailers replicate Amazon’s ChatGPT advertising strategy, and what role does The Trade Desk play?

[09:45] - Why offsite advertising is becoming such an important growth opportunity for retail media

[11:00] - How every new surface strengthens Amazon’s USP as a DSP, and why this particular pilot still needs to be kept in proportion

Links & Resources

• Jo Lambadjieva writes AI for Ecommerce and Amazon Sellers, a newsletter read mostly by people running businesses on Amazon. I highly recommend subscribing!
• Read Jo's original piece in full: Amazon's Move Into ChatGPT Advertising Is a Bet on the Middle, Not the Surface
• Follow Jo Lambadjieva on LinkedIn
• Read my related articles:
  • DSPs Wanted: The Retail Media Revolution 96% of Advertisers Crave
  • ChatGPT Ads Are Here. I'm Not Panicking.
  • Why OpenAI's Ad Network Should Concern RMNs
• I'm sharing comedy skits on Instagram about retail media! Follow along: @retailmediabreakfastclub
• Subscribe to Retail Media Breakfast Club's daily newsletter
• Follow Kiri Masters on LinkedIn