Amazon to launch mobile ads, in a threat to Google & Facebook

Amazon to Compete with Google and Facebook with its Own Mobile Ads

As per the speculations made by EMarketer, Amazon may raise its share of the digital advertising market from the existing 6.8 percent to 8.8 percent.

Bloomberg said the idea is to generate more revenue for Amazon's advertising division, which is now focused on selling ad space that features brand logos and product photos.

The people familiar with the report have stated that the Amazon Said to launch mobile ads to the iOS and later down the year, the video ads will embrace the Amazon for Android mobile app. Advertisers are shifting their spending to follow the growing number of people watching videos on mobile devices and are making brief video snippets to appeal to people on the go. Amazon's key advantage over Facebook and Google is its highly personalized data about its customers, including their shopping histories and the viewing and listening habits of the 100 million people who subscribe to Amazon Prime.

Selling video spots in its apps expands the reach of an ad product that Amazon developed for its devices such as the Fire TV streaming device and Kindle e-reader app by bringing it to non-Amazon devices such as Apple smartphones, Collin Colburn, an analyst at Forrester Research, told Bloomberg.

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Earlier, the online retailer used product descriptions, consumer reviews to determine which product was more relevant on a particular page. Many of those video posts on other platforms feature links to sites other than Amazon where shoppers could buy products. Per Bloomberg, Amazon decided its lack of video content in recent years meant that better shopper engagement and product discovery was happening elsewhere.

Amazon requires marketers to spend $35,000 to run the spots at 5 cents per view for 60 days, although those prices vary by ad category, per Bloomberg.

From the last couple of months, the Washington-based, multinational technology company was beta testing the ads on the iOS platform and the fields trials seem to be over now.

Amazon has avoided selling advertising space on its site from years, not to disrupt shopping experience.

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