Owning the Rails: Why Amazon’s Infrastructure Play Changes the Ad Game
Friday November 7, 2025
As I wrote recently in our last blog Amazon Positions to TAKE OVER Programmatic Amazon has been quietly positioning itself to dominate the programmatic ad space by creating its own programmatic ad platform.
Low and behold, not 5 days after I posted this, A recent report fromAdweek revealed that major brands are shifting millions of dollars in ad spend from The Trade Desk (TTD) to Amazon’s ad platform. One global auto brand, for instance, moved roughly $80 million annually from TTD to Amazon by Q1. This isn’t just another budget shuffle, it signals something deeper: marketers are realigning around platforms that own more than just the bidding stack, they own the rails.
In this post I’ll do my best to unpack why Amazon is gaining ground, what this means for marketers, and how you should respond.
Why the Shift is Happening
Let’s break down the forces driving this budget movement.
1. Fee structure & pricing pressure One of the most cited reasons: lower tech fees and a more attractive pricing model at Amazon. According to industry sources, Amazon’s tech fees on programmatic guaranteed deals can go as low as ~1%, versus 7-15% typical elsewhere. The Gradient Group For cost-sensitive advertisers, this is a real lever.
2. Inventory access + exclusive content Amazon isn’t just a DSP-layer anymore. It also owns or controls valuable inventory: its own properties (like Fire TV/Prime Video), and increasingly third-party supply via strategic deals. This gives it a differentiated “rail” — a path from ad impression to commerce. A buyer quoted in the story said, “Amazon’s unique access to third-party supply plus its data” is compelling. The Gradient Group
3. Data & closed-loop attribution Amazon’s ecosystem allows advertisers to tie ad exposure more directly to downstream purchase behavior (on Amazon, via first-party shopper data). This is a big contrast to many open-web DSP scenarios where attribution is more modeled than observed. When you combine that with lower friction and owned media rails, the value proposition becomes stronger.
4. Flexibility & partnership model Another factor: marketers mention better interface, more flexible deal structures (less rigid minimums), and a more cooperative advertiser experience at Amazon. When budgets aren’t growing, the differentiator becomes “how far your media dollar goes” and how agile you can be.
What This Means for Marketers
Now that we know why the shift is happening, let’s map out what it means — for strategy, buying, operations and measurement.
Strategic implication: Owning the rails matters When a platform not only facilitates bidding but also owns or controls key parts of the delivery and measurement chain (inventory, data, commerce connection), it becomes a more strategic partner. Amazon’s move shows that marketers increasingly favour platforms with greater integration — they don’t just buy impressions; they buy into ecosystems.
Media buying & budget allocation Given the shift, you should re-evaluate your DSP mix. A few implications:
• Don’t assume “open web” DSPs automatically dominate; performance, cost and data access increasingly matter.
• Consider moving a portion of your CTV/video budgets to platforms like Amazon, especially if your goals include attribution to commerce (not just awareness).
• But don’t abandon open web; breadth still matters. TTD and others still offer scale, and diversification remains smart.
Measurement & attribution As more spend moves to platforms that link ad exposure to actual commerce events, your measurement model must evolve:
• Prioritise platforms that help tie ad exposure → on-site behaviour → purchase (especially for e-commerce/retail).
• But also watch for bias: when a platform both sells the ad and owns the inventory, confirm that you’re getting transparency, and aren’t being channelled to their own media overly. Some buyers expressed concern about Amazon prioritizing its own inventory.
•If you currently operate primarily on open web DSPs with modeled attribution, you may be at a disadvantage in terms of performance visibility
Final Word
In short, the ad game is evolving from open marketplaces to controlled infrastructures, and the pace of that evolution is accelerating. The winners will be those who move early, building fluency in platforms that own both the rails and the data. Early adopters will gain not only efficiency and sharper insights, but a structural advantage in performance that latecomers will struggle to match.
Those who wait risk finding themselves buying tickets on rails already laid, priced, and operated by someone else. Here at Forgelight, that urgency has become personal. This rapid transformation has accelerated our own efforts to integrate more deeply with Amazon’s DSP through our Hyloq software ensuring that our clients aren’t just adapting to the new ad landscape — they’re out ahead of it.
Because in this new era, success belongs to the brands and partners who don’t just play the game — they build on the rails that define it.