While there are many sites with their own advertising platforms, few are as big as Google AdWords. This ad platform is used on countless sites, even major sites like Amazon, and has generated billions upon billions of dollars for Google. To call a success would be an understatement.
However, it looks like Google is going to have some serious competition soon. According to a report in The Wall Street Journal, Amazon will be introducing their own form of targeted ads later this year. The program will draw upon Amazon's wealth of customer shopping data.
Amazon's wealth of product and shopping data would inevitably be a very strong draw for the advertiser who is looking for more reach and flexibility beyond Google AdWords. Even though Google also has its own database of products and product search, it is quite minimal when it comes to what consumers actually buy. Amazon is far ahead of Google in this aspect. They have cleverly amassed this data with features like Log-in With Amazon that allows Amazon's over 250-million customers to use their Amazon credentials when making an important purchase through Amazon or other websites.
A wide range of advertisers will benefit from this wealth of information that Amazon possesses. The new platform is going to be simple and not in anyway over-sophisticated as per the current hints. It will include the bare minimum functionality in anticipation of gradual improvements over time.
Even though digital marketing experts predict that Amazon's existing ad business will bring in at least $1 billion in 2014, up from $700 million in 2013, it is still a paltry figure compared to Google's market share right now. But Amazon can improve these figures in the very near future with its treasure trove of customer data.
This project from Amazon can definitely hit the bottom line of Google. Online ads account for the lion share of Google's revenues. Also, Amazon is considered one of the largest ad buyers of Google up to now. But Amazon will definitely find it difficult at the start since Google is running the program for more than 14 years and is unrivaled when it comes to online ads. Amazon has put in force a plan to allow advertising agencies to buy online ads in bulk on behalf of their thousands of individual clients. They are developing a proprietary tool for this purpose. All this is an effort to win the market share which largely belongs to Google at the moment.
However, it looks like Google is going to have some serious competition soon. According to a report in The Wall Street Journal, Amazon will be introducing their own form of targeted ads later this year. The program will draw upon Amazon's wealth of customer shopping data.
Amazon's wealth of product and shopping data would inevitably be a very strong draw for the advertiser who is looking for more reach and flexibility beyond Google AdWords. Even though Google also has its own database of products and product search, it is quite minimal when it comes to what consumers actually buy. Amazon is far ahead of Google in this aspect. They have cleverly amassed this data with features like Log-in With Amazon that allows Amazon's over 250-million customers to use their Amazon credentials when making an important purchase through Amazon or other websites.
A wide range of advertisers will benefit from this wealth of information that Amazon possesses. The new platform is going to be simple and not in anyway over-sophisticated as per the current hints. It will include the bare minimum functionality in anticipation of gradual improvements over time.
Even though digital marketing experts predict that Amazon's existing ad business will bring in at least $1 billion in 2014, up from $700 million in 2013, it is still a paltry figure compared to Google's market share right now. But Amazon can improve these figures in the very near future with its treasure trove of customer data.
This project from Amazon can definitely hit the bottom line of Google. Online ads account for the lion share of Google's revenues. Also, Amazon is considered one of the largest ad buyers of Google up to now. But Amazon will definitely find it difficult at the start since Google is running the program for more than 14 years and is unrivaled when it comes to online ads. Amazon has put in force a plan to allow advertising agencies to buy online ads in bulk on behalf of their thousands of individual clients. They are developing a proprietary tool for this purpose. All this is an effort to win the market share which largely belongs to Google at the moment.
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