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Amazon TAM vs. UAM: Understanding the Key Differences

Amazon TAM vs. UAM: Understanding the Key Differences

DAte

Mar 27, 2023


Amazon has two server-side header bidding solutions for publishers: Unified Ad Marketplace (UAM) and Transparent Ad Marketplace (TAM). While both platforms serve the same purpose, there are some key differences between the two that publishers should be aware of when deciding which one to use.



UAM is designed for small and medium-sized website publishers, while TAM targets larger enterprise publishers. One of the main differences between the two is that UAM is free of charge for publishers, but takes a 10% transaction fee by deducting 10% of the sold ad impressions. On the other hand, TAM charges a fee for its services, but does not take a cut of the ad impressions.



Another difference between the two platforms is how they handle payments. With UAM, Amazon combines earnings from Amazon and SSPs and sends one monthly payment to the publisher. Each SSP then pays the publisher directly. With TAM, Amazon pays the publisher for Amazon demand, but each SSP pays the publisher separately for their demand.



What is Amazon TAM?



Amazon TAM stands for Transparent Ad Marketplace. It is a server-side header bidding solution designed for large enterprise publishers. The platform allows publishers to connect with multiple demand partners, including Amazon, to increase their ad revenue.



One of the main benefits of Amazon TAM is its transparency. Publishers can see the exact bid prices from all demand partners, which helps them make informed decisions about which ads to show on their site. Additionally, Amazon TAM offers a unified auction, which means that all demand partners bid at the same time, ensuring that the publisher receives the highest possible price for their ad inventory.



Amazon TAM also offers a range of features to help publishers optimize their ad revenue. For example, the platform includes advanced reporting and analytics tools to help publishers understand how their ad inventory is performing. Additionally, Amazon TAM includes tools to help publishers manage their ad inventory, including the ability to block specific ads or demand partners.



What is Amazon UAM?



Amazon Unified Ad Marketplace (UAM) is a server-side header bidding solution designed for medium-sized publishers. It allows publishers to sell their ad inventory to multiple demand sources simultaneously, including Amazon demand, and receive a single monthly payment from Amazon that combines earnings from Amazon and other SSPs.



UAM offers a range of benefits to publishers, including:



  • Increased competition for ad inventory, resulting in higher CPMs and revenue



  • Reduced latency and improved page load times due to server-side ad calls



  • Access to Amazon's vast pool of demand, including Amazon DSP and Amazon Advertising



  • Easy integration with existing ad servers and exchanges



UAM is free of charge for publishers, but Amazon takes a cut of sold ad impressions. Specifically, it charges a 10% transaction fee by deducting 10% of the winning bid price. Publishers can set up UAM using Amazon's self-service portal or work with a managed service provider (MSP) for additional support and optimization.



In summary, UAM is a powerful tool for medium-sized publishers looking to increase revenue and streamline their ad operations. By leveraging server-side header bidding and Amazon's vast demand pool, publishers can maximize yield and improve the user experience on their sites.



Key Differences between Amazon TAM and UAM



Amazon offers two server-side header bidding solutions for publishers: Unified Ad Marketplace (UAM) and Transparent Ad Marketplace (TAM). While both solutions aim to help publishers increase revenue and streamline ad operations, there are some key differences between them.



Firstly, TAM is designed for larger enterprise publishers, while UAM is for medium-sized publishers. TAM offers more advanced features such as custom pricing rules, access to Amazon's premium demand, and the ability to work with multiple supply-side platforms (SSPs). UAM, on the other hand, has a simpler setup process and is better suited for publishers with lower traffic volume.



Another major difference between TAM and UAM is how payments are handled. With TAM, Amazon handles all supply partnerships on behalf of publishers, and publishers sign contracts only with Amazon. All bidders compete equally, and Amazon pays the publisher directly for Amazon demand. With UAM, Amazon combines earnings from Amazon and SSPs and sends one monthly payment. Each SSP pays the publisher directly, and Amazon pays the publisher for Amazon demand.



Finally, TAM offers more control over ad quality and brand safety than UAM. TAM allows publishers to set custom blocklists and view detailed reporting on ad quality and brand safety. UAM, on the other hand, has a more limited set of controls and reporting features.



Overall, the choice between TAM and UAM will depend on the specific needs and size of a publisher's business. Larger publishers with complex ad operations and high traffic volume may benefit from TAM's advanced features and controls, while smaller publishers may find UAM's simpler setup and payment process more appealing.



Which One to Choose?



Choosing between UAM and TAM depends on your business needs and goals. Here are some key factors to consider:



  • Publisher Size: If you are a small to medium-sized publisher, TAM may be the better choice for you. On the other hand, if you are a larger publisher with more complex needs, UAM may be a better fit.



  • Transparency: If you value transparency and control over your ad inventory, TAM may be the better choice for you. With TAM, you have more control over which ad networks you work with and how your inventory is sold.



  • Efficiency: If you want a more streamlined and efficient ad buying and selling process, UAM may be the better choice for you. With UAM, you only need to sign one contract with Amazon and they handle the rest, including signing contracts with SSPs.



  • Transaction Fees: If you are concerned about transaction fees, UAM may be the better choice for you. UAM charges a 10% transaction fee, while TAM charges a fee based on a percentage of the winning bid.



Ultimately, the decision between UAM and TAM comes down to your specific business needs and goals. Consider the factors above and do your research to make an informed decision.



Conclusion



Both Amazon Unified Ad Marketplace (UAM) and Transparent Ad Marketplace (TAM) are powerful ad serving platforms offered by Amazon Publisher Services (APS). Both platforms offer unique features and benefits that cater to different types of publishers and their advertising needs.



UAM is a managed service that allows publishers to plug in its demand and everything is set. All the groundwork is done by Amazon, and publishers only need to worry about integrating their inventory to start serving ads. On the other hand, TAM is an invitation-only server-side header bidding solution for enterprise publishers with major exchanges. TAM provides greater transparency and control to publishers, but it requires more technical expertise and resources to set up and manage.



Overall, the choice between UAM and TAM depends on the publisher's specific needs and priorities. Publishers who value ease of use and simplicity may prefer UAM, while those who prioritize transparency and control may prefer TAM. Regardless of the choice, both platforms offer robust ad serving capabilities that can help publishers maximize their revenue potential.


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