What is Amazon APS? We started Amazon Publisher Services (APS) to help you maximize your ads earnings in the most efficient and transparent way through a single, cloud-based header bidding integration. Amazon Ads and third-party ad buyers bid on your inventory programmatically via a unified, first-price auction in which the highest bid always wins, and you always receive 100% of the winning bid amount.
One of the primary ways we help you increase earnings is by growing the diversity and volume of demand flowing through the APS auction. We do this while also working to be more efficient and manage our costs to serve you, so that we can build the best publisher monetization program to help you grow your business both today and over the long-term.
We currently apply a 10% publisher transaction fee to third-party demand via the Unified Ad Marketplace (UAM). On September 1, 2023, we will begin applying the same 10% publisher transaction fee to Amazon Ads demand going through APS to support further investment and innovation.
What is Amazon APS?
Amazon Publisher Services (APS) is a suite of tools and cloud services for web and app publishers to build, grow, and monetize their digital businesses. It is a cloud-based marketplace that brings all the solutions built by Amazon for publishers under one suite.
Amazon Publisher Services include the Transparent Ad Marketplace (TAM), the Unified Ad Marketplace (UAM), and Shopping Insight. These services allow publishers to improve revenue with no impact on latency with one call to Amazon’s cloud-based marketplace.
The revenue increase is due to a large, competitive field of bidding as well as superior transparency for publishers. As a result, publishers can better understand what marketing strategies yield superior results.
Both the Transparent Ad Marketplace and the Unified Marketplace rely on header bidding services. Header bidding is a technology that allows a publisher to offer its inventory of available ad spots to many ad exchanges simultaneously, so they can bid on spots. This high-speed, digital bidding technique allows advertisers to compete for highly specific and coveted ad spots, while helping publishers more effectively monetize their content.
Let’s take a closer look at the services offered, who they are for, and how publishers can leverage them to their benefit.
How do publishers get into Amazon programmatic advertising?
Publishers can enter Amazon’s programmatic advertising program through the Transparent Ad Marketplace or the Universal Ad Marketplace. Each has its own advantages and disadvantages. While TAM services are targeted towards larger, enterprise publishers, UAM services are for small and mid-level publishers.
The main difference between Amazon UAM and TAM revolves around how each handles SSPs for publishers. An SSP, or supply-side platform, is a software solution for the automated selling of ad space. Publishers use SSPs to sell ad space in a variety of mediums, including text and video ads.
The automated nature of selling space with an SSP partner allows for a publisher to receive competitive bids within an ad marketplace, thereby increasing monetization of their site without having to increase the actual number of ads being run.
With TAM, Amazon Publisher Services assumes the publisher is large and established enough to already have individual relationships with SSPs and simply seeks to centralize bidding programmatically in their ad marketplace. By contrast, users of UAM get access to both Amazon ads for publishers and a host of SSPs who work with Amazon, allowing Amazon to manage all the relationships between the SSPs and the publisher.
Services Offered by Amazon for Publishers
Transparent Ad Marketplace (TAM)
Amazon TAM is the preferred Amazon advertising platform for larger publishers. It is a server-side bidding solution for publishers, similar to Google’s open bidding.
Typically, larger publishers already have affiliates they work with within the digital ad marketplace. They are more likely seeking to use Amazon Publisher Services in order to leverage access to Amazon-specific services and the unique Amazon ad marketplace to combine with other header bidding services as an additional monetization effort.
As mentioned, users of TAM will need to have existing contractual relationships with all their demand bid partners, since Amazon simply acts as a centralized system for these header bidding services. As to what partners they work with, Amazon boasts over 20, including such popular ones as AppNexus, Facebook Audience Network, OpenX, RubiconProject, Smaatom, and SpotX. TAM users can also turn off any bidders they wish in real-time.
For transparency, Amazon TAM users have access to all auction records, allowing them to review bidders for each impression, bid CPMs, as well as the winner of each.
Unified Ad Marketplace (UAM)
Amazon UAM serves small to midsize publishers well because they do not necessarily already have personal relationships with SSPs. More SSPs means more bids so, in theory, more revenue for publishers. Using Amazon UAM, publishers not only have access to Amazon DSP (Demand Side Platform), but also access to a list of established SSPs including District M, Oath, OpenX, Pubmatic, RhythmOne, and Rubicon. Overall, this allows for extremely competitive bidding for smaller publishers without the need for businesses to develop individual relationships with the SSPs.
UAM also allows for convenient, centralized billing. Amazon releases a single payment on a 60-day basis. However, there are some fees involved. UAM charges a 10% transaction fee from any SSP’s prices.
Users of UAM also have a robust set of reporting tools at their disposal. Amazon services include reporting bid requests, impressions, and earnings. Additionally, there are a host of filters for more granular reporting such as devices, sites, and price points.
Users of APS also gain access to Amazon Shopping Insights. This tool allows you to understand how your audience engages with Amazon, analysing aggregate data that can be parsed and examined using different types of customizable criteria.
Data from Shopping Insights will give you an excellent window into your visitors’ shopping habits, so you can, in turn, with more granularity tune your content to take advantage of your readers’ interests. In addition, you can form reports to give advertisers a better understanding of your readership and their shopping habits. These reports can be used to compare segmented audiences based on inventory performance and advertiser’s involvement.
Data for Shopping Insights is gathered from Amazon’s first-party audience segment and is collected on domains with at least 5000 unique visits per day. Shopping Insights is only available for users of Amazon’s TAM.
What Are Some Other Advantages of Using Amazon Publisher Services?
Setting up a new digital account with APS allows for a single swift call to the Amazon cloud for all bidding to take place. Not only does this speed up the bidding process, but using the Amazon cloud also frees up a publisher’s bandwidth, further reducing latency.
That being said, the greatest benefit of APS is that publishers can bring Amazon in as a fellow bidder on published offerings. As the third most-visited site in the US, Amazon boasts monthly traffic of approximately 2.4 billion visits per month. This makes access to their bids extremely valuable.
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