Amazon said to launch mobile ads, in threat to Google, Facebook

Amazon.com Inc. has found a new way to secure a share of the $ 129 billion digital advertising market that is now dominating Google and Facebook: selling video spots in the retail giant's smartphone shopping app. line .

According to people familiar with this plan, Amazon has been testing beta ads on the Apple iOS platform for several months. A similar product for Google's Android platform is scheduled for later this year, said people who asked not to be identified because they were not allowed to share information publicly.



The short video spots appear in response to the search results in the shopping app, a valuable space for advertisers, because users looking for products in the app have a greater propensity to buy than those who travel on Facebook or they watch videos on YouTube from Google.

Amazon has become a growing problem in the digital advertising market, capturing 50% of all online sales in the United States. Amazon's share of the digital advertising market will grow from 6.8% in 2018 to 8.8% this year, according to EMarketer Inc. Google, the market leader, will see its share increase from 38 to 37.2% , 2 percent.

Amazon, through a spokesperson, declined to comment. A Google spokesperson did not immediately respond to a request for comment.

The sale of more video ads opens new revenue opportunities for Amazon's advertising division, which primarily sells spaces with branded logos, product photographs and descriptions equivalent to digital billboards. Video ads are similar to TV ads and can enhance the power of promotion.

Brands will spend nearly $ 16 billion on mobile video advertising this year, 22.6 per cent more than in 2018, according to EMarketer. Advertisers are changing their spending to track the growing number of people watching videos on mobile devices and making short video clips to attract people on the road. Such ads are common on YouTube and Facebook feeds.

For years, Amazon has refrained from selling advertising space on its site for fear of disrupting the buying experience. Instead, he used prices, product descriptions, and consumer opinions to determine the most prominent products on the page. The site is more and more a payment platform to play, with the top dedicated to the highest bidder, a change that has helped to boost Amazon's profits.

Amazon started adding product-related video content to the site two years ago to prevent shoppers from wanting YouTube and Instagram to watch video demonstrations and testimonials from influencers other than Amazon. Many of these videos posted on other platforms offer links to sites other than Amazon where buyers can buy products. The lack of Amazon video content has revealed a weakness in buyer engagement and discovery of improved products by other sites.

The latest mobile video advertising is a continuation of this effort to bring more product videos to the platform. Amazon needs a $ 35,000 advertising budget to publish the ads at 5 cents per view and run for 60 days, one person said. Prices may vary by category and not all pay a fixed rate, said another person.

Selling advertising videos in smartphone apps extends a product developed by Amazon for its own devices, such as the Fire TV streaming device and Kindle e-readers, to non-Amazon devices, such as Apple smartphones, People often buy, said Collin Colburn, an analyst at Forrester Research.

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