FTC v Amazon: Nothing Changes

By now, you’ve probably read plenty of coverage about the FTC’s case against Amazon’s ad auction (last week I shared an article on The Drum). But the question I’m more interested in is the one that actually matters if you’re managing an advertising budget or running a retail media network: does any of this change where the money goes?

My prediction, sadly, is no. Though I’d be very happy to be proven wrong.

In this episode, I break down why cheaper clicks probably wouldn’t mean less money for Amazon, why advertiser outrage may not translate into budget shifts, and why this case gives other retail media networks a short window to make transparency and auction mechanics a competitive advantage. I also dig into some fascinating arguments from the LinkedIn comments, including whether Amazon’s auction practices may have distorted industry benchmarks far beyond the individual advertisers involved.

This episode is sponsored by GrowthLoop

Timeline

[00:55] - Why cheaper Amazon ad costs could actually lead advertisers to spend more

[01:46] - Why advertiser budgets are unlikely to leave Amazon anytime soon

[02:12] - The opportunity for other retail media networks to win on transparency and trust

[03:05] - The questions advertisers should be asking about auction mechanics, reserve prices, and pricing changes

[04:05] - Why the FTC’s Amazon case may be simpler to explain than the Google ad-tech case

[07:20] - How potentially inflated clearing prices could have contaminated retail media benchmarks and bidding tools

[09:35] - Why Amazon can disappoint advertisers morally and still be the best place to spend a performance dollar