Amazon with an unexpected move against Google and Facebook

Amazon, with a new approach to getting a piece of the market with digital ads worth $ 129 billion, currently dominated by Google and Facebook. Amazon will run ads on its e-commerce application.

The company has made early attempts on its iOS ads for several months. A similar product is also being considered by Google to be implemented on Android later this year.

Video fragments - excerpts will appear in response to the consumer search results in the shopping app. This is expected to boost the purchasing power of the shooter and move them away from scrolling to Facebook or viewing YouTube videos.

Amazon proved to be a strong competitor in the world of digital marketing, with the company accounting for 50% of all online sales in the US. It is expected that the company's share in the sector will grow by 8.8% this year, compared to the previous one by 6.8%. With Amazon's new positioning, Google is expected to drop to 37.2% from 38.2%.

Video ads will reveal a new profit opportunity. This marketing approach is similar to TV ads and can greatly enhance the effect of promotion.

This move of the company to mobile video ads is part of Amazon's ongoing move to loosen more promotional material on its platforms. The company will require a $ 35,000 advertising budget for 5 cents of viewing that lasts for 60 days. Prices may vary by category and not everyone will pay a flat rate.

This will also enable Amazon to develop its own devices and services, such as Fire TV streaming service, and adapting Kindle to Apple users.

Source: Bloomberg Finance L.P.

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