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Amazon Utilises Data on User Buying Behaviour in New Ad Platform to Score Over Google’s Ad Monopoly

by admin
August 26, 2014
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Amazon is raring to take on Google’s AdWords with its new ad placement platform called Amazon Sponsored Links. In a move that clearly hints at Amazon’s intent to reduce Google’s online advertising monopoly, the online retailer will begin testing the new placement platform later this year, according to some reports, with an aim to to help marketers interact with its 250 million strong users.

Reid Spice, VP of media at digital agency iCrossing, points out, “Amazon knows a lot about how people are searching on the site and consumer preferences and histories. It can use that to tailor advertising in ways that probably nobody else can.”

Program VP, Digital Media and Entertainment at IDC, Karsten Weide explains, “Marketers would love to have another viable option beyond Google and Facebook for their advertising.”

Amazon has been testing new methods to cover more ground with its so far limited-business ad program for some time. The new platform will start with its own pages and replace the ads provided by Google.

Google’s AdWords is a $50 billion-a-year advertising business, which will undoubtedly be a big target for Amazon to overcome. The two companies have been at loggerheads lately, crossing over to other domains of online enterprise to gain leverage like Google’s Shopping Express and Amazon’s more recent Fire. How Amazon fares now with its ad platform offering remains to be seen.


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