Amazon Goes After Google, Facebook With Mobile Ad Launch | WHAT REALLY HAPPENED

Amazon Goes After Google, Facebook With Mobile Ad Launch

In its quest for global, and galactic monopolistic domination, Amazon had focused mostly on legacy businesses with low margins which had little operational leverage, high debt and were losing market share to the online retail giant; one thing the world's richest man refused to do was to aggressively go after his online tech giant peers.

Until now.

In its quest to expand into yet another vertical and grab a piece of the $130 billion digital advertising market dominated by Google and Facebook, Amazon will start selling video spots on its smartphone shopping app.

According to Bloomberg, Amazon has been beta testing the ads on Apple's iOS platform for several months, with a similar product for Google’s Android platform planned for later this year. The brief video spots appear in response to search results on the shopping app, valuable space for advertisers since people searching for products on the app have a higher propensity to buy than those scrolling through Facebook or watching videos on Google’s YouTube.

With a massive user base already freely available to Amazon, the online juggernaut has emerged as a fast-growing challenger in the digital advertising market since it already captures 50% of all online sales in the US. According to EMarketer, Amazon’s digital advertising market share will grow to 8.8% this year from 6.8% in 2018, while the market-leader Google will see its share slip to 37.2 from 38.2%.

Selling more video ads opens a new high-margin, revenue opportunity for Amazon’s advertising division, which mostly sells space featuring brand logos, product photographs and descriptions that are the equivalent of digital billboards. Video ad spots are similar to television commercials and can deepen the power of promotion.