Amazon Advertising: Amazon to Introduce Mobile Ads, in Threat to Google, FB | International Business News

Amazon has launched a new way to get a share of the $ 129 billion digital advertising market, now dominated by Google and Facebook: selling video images on the e-commerce giant's smartphone purchase program.

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

The short video points appear in response to the search results in the purchase program, 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.

Amazon has emerged as a fast growing challenger in the digital advertising market, as it captures 50% of all online sales in the United States. Amazon's digital market share will grow to 8.8 percent this year from 6.8% in 201[ads1]8, according to EMarketer. Market leader Google will see its stock market at 37.2% from 38.2%.

Amazon, through a spokeswoman, refused to comment. A Google spokesperson did not immediately return a comment request.

Selling multiple video ads opens a new revenue opportunity for Amazon's advertising department, which mostly sells space with brand logos, product photos, and descriptions similar to digital billboards. Video ads are similar to TV commercials and can extend motion power. Brands will spend nearly $ 16 billion on mobile video advertising this year, up 22.6 percent from 2018, according to EMarketer. Advertisers change spending to follow the growing number of people watching videos on mobile devices, and make short video footage to appeal to people on the go. Such ads are common on YouTube and in Facebook streams.

For years, Amazon refrained from selling advertising space on the site for fear of disturbing the shopping experience. Instead, it used price, product descriptions and consumer reviews to determine which products were most prominent on the page. The site is increasingly a pay-to-play platform, top of the page dedicated to the highest bidder, a shift that has helped boost Amazon's profits.

Amazon began adding more product-related video content to the site two years ago to prevent customers from becoming defective at YouTube and Instagram to watch video demonstrations and testimonials from influencers not found on Amazon. Many of these video posts on other platforms have links to websites other than Amazon where shoppers can buy products. Amazon's lack of video content showed a weakness in shopper engagement and product discovery other sites did better.

The latest mobile video ad push is a continuation of the work of adding more product videos to the platform. Amazon requires a $ 35,000 budget to run the 5 cents per impression spot to run the ads for 60 days, one person said. Prices may vary by category and not everyone pays a fixed rate, another person said.

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