‘Amazon’s attention turns to the $200 billion ad industry’ – Internet Retailer
Shira Ovide and Leila Abboud say, “Advertising tools and deep insight into consumers’ buying and browsing habits put Amazon in position to expand its reach.
(Bloomberg Gadfly)—From Amazon.com Inc.’s origins as a virtual bookstore, it became an online mall for every product imaginable. Then the company stealthily built a computing utility business that now generates the majority of its profit, and it seemingly has ambitions to do much, much more.
Without much fanfare, CEO Jeff Bezos has set his sights on yet another market: the $200 billion online advertising industry that is dominated by Alphabet Inc.’s Google and Facebook Inc. While Amazon’s annual ad revenue is relatively small at an estimated $1.2 billion, the company has assembled a Google-like set of advertising tools and services that could become Amazon’s next big thing.
First, Amazon is increasingly selling advertising on its own sprawling sites to companies that want to pitch consumers as they shop. Search for mascara on Amazon and users will most likely see paid product placements from makeup companies and independent merchants that want their items to stand out from the crowd”.
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