Amazon has been quietly but aggressively positioning itself to dominate the demand-side platform (DSP) market, a critical segment of advertising technology where buyers manage and optimize digital ad campaigns across the internet. According to a recent report in Business Insider, the e-commerce giant is executing a multifaceted strategy aimed at surpassing rivals like The Trade Desk and Google’s Display & Video 360 by 2025. Insiders familiar with Amazon’s operations describe a plan that leverages its vast consumer data, expanding ad inventory, and competitive pricing to lure advertisers away from established players.

At the core of Amazon’s approach is its Amazon DSP, which allows brands to purchase ads not only on Amazon’s own sites and apps but also across third-party publishers and connected TV (CTV) platforms. The company has invested heavily in enhancing this tool with advanced targeting capabilities powered by its trove of shopping and viewing data from Prime Video. This integration gives advertisers a unique edge in reaching high-intent consumers, something that The Trade Desk, known for its independent programmatic buying, and Google, with its walled-garden ecosystem, have struggled to match at scale.

Amazon’s Data Advantage and Market Gains
What sets Amazon apart is its ability to blend first-party data from e-commerce transactions with emerging signals from its ad-supported streaming services, creating a more holistic view of consumer behavior. Industry executives cited in the Business Insider article note that Amazon has already made significant inroads, capturing market share in CTV advertising where growth is exploding. For instance, as streaming overtakes traditional TV, Amazon’s Prime Video ads are drawing budgets that might otherwise flow to competitors.

Meanwhile, The Trade Desk has faced headwinds, including a recent stock plunge amid concerns over slowing growth and intensifying competition. Reports from AdExchanger highlight how advertiser preferences are shifting, with some surveys showing Amazon reclaiming top spots in DSP rankings. Google’s DV360, while dominant in search-linked advertising, is seen as less agile in the open web compared to Amazon’s omnichannel push.

Competitive Pricing and Client Shifts
A key tactic in Amazon’s playbook involves undercutting rivals on fees, making its platform more attractive for large-scale campaigns. As detailed in coverage from PPC Land, this pricing strategy has led to migrations of millions in ad spend from The Trade Desk to Amazon, particularly in CTV. Advertisers are enticed by lower margins and the promise of better ROI through Amazon’s closed-loop attribution, which tracks purchases directly tied to ad exposures.

Critics, however, warn of potential antitrust issues, echoing concerns raised by The Trade Desk executives. In an interview referenced in Mi3, the company’s chief revenue officer likened Amazon’s tactics to Google’s self-preferencing, suggesting it could stifle competition by favoring its own inventory. Despite these alarms, Amazon’s momentum appears unstoppable, with projections indicating it could command a leading share of the global DSP market by year’s end.

Strategic Investments and Future Outlook
To solidify its position, Amazon is ramping up investments in ad tech infrastructure, including partnerships with publishers and enhancements to its clean room technology for privacy-compliant data sharing. Insights from Ad Age underscore the intensifying battle among the “big three” DSPs, where Amazon’s commerce roots provide a defensible moat against pure-play competitors. As the industry grapples with cookie deprecation and signal loss, Amazon’s first-party data fortress positions it well for sustained growth.

Looking ahead, the race for DSP supremacy will hinge on innovation in AI-driven optimization and cross-device targeting. While The Trade Desk emphasizes transparency and independence, and Google leverages its search dominance, Amazon’s strategy of integrating retail media with programmatic buying could redefine how brands allocate their digital budgets. Industry watchers predict that by 2025, Amazon’s gains may force rivals to adapt or risk further erosion of their market positions, signaling a potential shift in the balance of power within ad tech.