Exclusive: American Express launches Amex Ads
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Illustration: Aïda Amer/Axios
American Express has formally stepped into the booming commerce media industry with the launch of Amex Ads, executives exclusively tell Axios.
Why it matters: The move reflects a growing trend of companies with first-party data and their own platforms pursuing advertising to drive new revenue.
How it works: Amex Ads lets brands buy display placements on Amex-owned properties, starting with AmexTravel.com. Brands can reach Amex's 34 million U.S. consumer cards members and target based on transaction and travel booking data.
- "In digital advertising, a lot of that today is primarily just being able to see what happens online and not necessarily being able to see that 360-degree view of the spend," Jacob King, senior vice president and head of Amex Offers Digital Media at American Express, tells Axios.
- The ad platform is separate from Amex Offers, which lets merchants fund cardholder discounts.
- Amex started piloting the platform earlier this year with Marriott Bonvoy, Macy's and TUMI.
The big picture: Amex joins peers like Chase and Mastercard in offering ads powered by their transaction data.
- Retailers like Amazon, Target and Kroger are leveraging their first-party data to sell targeted ads on their shopping websites and apps. Delivery platforms like Uber, DoorDash and Instacart also offer advertisers access to shoppers at the point of purchase.
- WPP Media estimates that commerce-driven ad revenue will reach nearly $170 billion globally this year and surpass TV revenue, including linear and streaming, for the first time.
Between the lines: Amex is betting its scale, closed-loop model and affluent customer base will differentiate it from the larger advertising industry as well as other commerce media companies.
- King also stressed the brand safety aspect. Amex Ads will only appear in authenticated, brand-safe environments since they are directly sold by Amex and are only available on their own properties.
- "We don't have short-term aspirations to be programmatic. This will be direct-sold content," King says. "We're creating the right brand-safe environment for both our advertisers and our card members."
What's next: King says Amex plans to expand ad inventory beyond AmexTravel.com to its other owned platforms.
