Sources Say Amazon Will Soon Be Targeting Ads, a la Google AdWords
According to The Register (citing a paywalled WSJ article), a new face in targeted ads is emerging (according to "people familiar with the matter") to compete with Google, and it's Amazon. They already have a vast, mineable collection of data about customers' buying, listening and viewing habits, so exploiting personalized ads seems a natural follow-on. According to the report, the ad system would replace Google as ad vendor on Amazon itself, and "It is also apparently hoping to beef up its ad placement business on other sites as part of Amazon's strategy to carve its way into Google's multi-billion-dollar AdWords' empire." Pretty soon Amazon will able to just save me time by ordering the things I would have ordered based on ads that they themselves have placed.
adblock plus
I'm OK with targeted ads. I just wish they would figure out how to target them.
I bought a couple of 'Hello Kitty' flash drives close to a year ago. It was a joke, people kept stealing my generic looking ones. The Hello Kitty sticks stay in my desk. Since then, every other time I log in, Amazon has to breathlessly show me various Hello Kitty things. An impressive panoply of products, but ones that I'm not especially interested in.
Try to buy something for a gift? Well, idiot algorithm thinks you're going to buy the same thing for the next six months....
You'd think it this was easy.
Faster! Faster! Faster would be better!
They've been doing it already. They started about two or three weeks ago when, as an Amazon affiliate, I was given an opportunity to create Amazon ads and to place them on my website. So far so good - the CPM is decent (just over a $1) and even though it hasn't been able to beat AdSense, it is still much better than most other networks I've tried in the past. The fill rate hangs around 30% at the moment. It looks promising.
Google tracks a large portion of the websites you visit, including slashdot. They have a more detailed browsing history. If you use gmail, they probably have all your purchasing history as well (including Amazon). Not to mention your search history. So, Amazon has a fraction of the data that Google would have on a person.
The only thing that Amazon has over Google is that you use Amazon ads and if a visitor buys something, you get a nice 4% commission. But, I don't know if big money will come from that - it's just blogs.