Through the Amazon DSP Microsoft Partnership, Amazon gains access to Microsoft’s advertisers and inventory, tightening its hold on programmatic media buying worldwide.
Does the Amazon DSP Microsoft Partnership signal a genuine shift in ad industry dominance?
However, this landmark alliance positions Amazon not just to compete, but to potentially create a new center of gravity, forcing advertisers and competitors alike to ask if the era of the duopoly is finally over.
Microsoft Hands Over Ad Buying to Amazon in Strategic Shift
Frensis Demi, Amazon Senior Ad Tech Sales Manager"This collaboration is designed to simplify media buying and drive stronger campaign performance through enhanced insights, scale, and technology."
Microsoft is officially stepping away from its media buying platform, Microsoft Invest, as part of a major strategic shift. In a recent communication, Microsoft announced that Amazon DSP is now its preferred transition partner and platform for Microsoft Invest customers, building on their existing relationship.
This move stems from a change in strategy first announced in May 2025, where Microsoft decided to focus its investments on other areas. The company is now concentrating on the Microsoft Advertising Platform, Microsoft Monetize, and Microsoft Curate.
The full transition away from Microsoft Invest is scheduled to be completed by February 28, 2026. During this period, Microsoft affirmed its commitment to supporting customers to ensure a smooth migration with minimal disruption to their business goals.
Microsoft selected Amazon DSP for its proven ability to deliver exceptional advertising results. The decision was based on several key capabilities of the Amazon platform.
- Shopping Behavior Insights – Amazon DSP uses real shopping data to enable highly targeted, performance-driven advertising campaigns.
- Extensive Reach – The platform provides access to premium placements across Amazon’s owned websites, apps, and connected TV properties.
- Third-Party Inventory – Amazon also offers access to a wide range of high-quality ad inventory from third-party publishers.
- Advanced Technology – It combines deep data intelligence and AI-enabled technology to deliver measurable results for advertisers.
The partnership extends beyond the client transition, as Microsoft Monetize will become a preferred SSP in Amazon’s Certified Supply Exchange program. This integration creates significant new opportunities for both advertisers and publishers.
Advertisers using Amazon DSP will gain more efficient access to open internet ad inventory and unique deals available on Microsoft Monetize. In addition, publishers on the Microsoft Monetize platform will benefit from increased access to premium demand from Amazon’s vast network of advertisers.
A key feature of this integration is the ability to create special packages that combine Amazon’s powerful shopper data with Microsoft Monetize inventory. This allows advertisers to apply Amazon’s valuable first-party insights to campaigns running across the open internet.
Amazon Details Global Onboarding Plan for Migrating Advertisers
A similar post was released by Amazon in support of Microsoft’s announcement, confirming the joint effort to assist migrating advertisers. The transition for Microsoft Invest customers will begin immediately and span the globe, covering North America, Latin America, the European Union, and Asia-Pacific regions.
Amazon highlighted its DSP as a full-funnel solution that uses unique first-party insights and clean room technology to boost efficiency. The platform also has advanced AI to automate and streamline campaign planning, purchasing, and measurement.
To ensure a smooth migration, Amazon Ads will provide multiple onboarding paths for new customers. The specific support structure will be tailored based on a client’s size, existing agency relationships, and service-level needs.
All migrating customers will receive comprehensive, high-touch support from dedicated teams. This support includes:
- Direct engagement with Amazon Ads account representatives.
- Assistance from an ad tech activation partner program.
- Guided sessions for campaign setup, planning, optimization, and reporting.
The deal also confirms Microsoft Monetize as a preferred SSP in Amazon’s Certified Supply Exchange program. Advertisers can now use special “Amazon Shopper Insights” packages, which apply Amazon’s shopping data to campaigns running on Microsoft Monetize’s open internet inventory.
Amazon’s Ad Empire Expands
Amazon is primed to take over the ad industry, according to Ronan Shields, who wrote an analysis on Digiday of this recent move by Amazon and Microsoft. This growing prominence is reflected at industry events like Advertising Week New York, where Amazon now has as many scheduled appearances as Google and Meta combined.
The company’s ambitions have expanded far beyond its traditional sponsored product ads. Amazon’s advertising presence now spans audio, gaming, sports, and streaming content, all powered by trillions of data points from its retail business that directly link ad views to purchases.
The Microsoft deal is seen as a move to consolidate not just clients, but also inventory control. This partnership is the latest in a series of major deals with other media giants.
- Roku
- Disney
- Netflix
- Spotify
- SiriusXM
These partnerships have massively expanded Amazon’s footprint, particularly in streaming. In the U.S. alone, Amazon DSP clients can now reach an estimated 80 million connected TV households through its owned properties and its deal with Roku.
Amazon is also leveraging an aggressive pricing strategy to win market share. While typical DSP fees range from 4% to 8%, ad buyers report Amazon’s take rates have dropped to as low as 1%, and in some cases zero, for large advertising spends.
This strategy creates what industry insiders call a “holy trinity” for advertisers. By combining massive reach, precise measurement, and below-market pricing into a single platform, Amazon is building an offer that is increasingly difficult for competitors to match.
Amazon’s Open-Web Takeover Accelerates with Microsoft in Tow
As highlighted by Seb Joseph on Digiday, Microsoft’s involvement pushes Amazon’s DSP further ahead in the global advertising market. This strategic push is already yielding significant financial results and forcing competitors to re-evaluate the market.
Beyond onboarding, the move marks a strategic consolidation of inventory and influence. Amazon isn’t just inheriting Microsoft’s advertisers – it’s also gaining preferential access to Microsoft Monetize’s open internet ad supply.
This integration makes it easier for advertisers to buy third-party inventory while taking advantage of Amazon’s first-party shopper data. The incentives for brands to centralize their ad spend on the platform are clear.
- Lower DSP Fees – Amazon’s DSP charges typically range between 4% and 8%, but large advertisers have reported rates as low as 1%, with occasional fee waivers.
- Integrated Inventory – Microsoft Monetize inventory will feed directly into Amazon’s Certified Supply Exchange program, simplifying media buys.
- Data Advantage – Advertisers gain access to Amazon’s unmatched retail and behavioral data for precise targeting and measurement across the web.
What This Means for Ecommerce Brands and Sellers
For Amazon sellers and direct-to-consumer brand owners, this evolution transforms the Amazon DSP from a useful tool into an essential, full-funnel advertising engine. It is now a primary channel for reaching customers across their entire digital journey, from streaming TV to news websites and back to Amazon for purchase.
With expanded capabilities comes greater complexity, requiring a more sophisticated strategy to maximize results. Brands that adapt quickly will gain a significant competitive advantage.
Here are actionable insights brands can implement now:
- Adopt a True Full-Funnel Approach. Use Amazon’s shopper data to run brand awareness campaigns on platforms like Netflix and Disney+, then retarget those engaged viewers on Amazon to drive sales.
- Re-evaluate and Consolidate Budgets. Brands that previously split budgets across multiple DSPs should consider consolidating that spend within Amazon to potentially unlock lower fees and gain unified performance data.
- Lean on Specialized Expertise. The platform’s growing complexity means that navigating it effectively requires deep knowledge. Partnering with a specialized Amazon agency is crucial for developing sophisticated cross-channel campaigns and maximizing return on ad spend.
- Test Off-Amazon Campaigns Immediately. Start experimenting with campaigns that target ideal customer segments on high-quality third-party websites and apps to capture new audiences.
Shopify"Programmatic advertising allows marketers to automatically serve ads to specific segments of your target audience across the internet—all within seconds."
