Amazon To Launch Mobile Ads, in a Threat To Google and Facebook (bloomberg.com)

Amazon.com has been beta testing its in-house made ads on Apple's iOS platform for several months, Bloomberg reported Thursday, in a move that is described as ecommerce giant's growing efforts to grab a chunk of the $129 billion digital advertising market that is currently dominated by Google and Facebook. Bloomberg's report added that Amazon plans to introduce a similar ad product on Google's Android platform later this year. From the report: Amazon has emerged as a fast-growing challenger in the digital advertising market since it captures 50 percent of all online sales in the US. Amazon's digital advertising market share will grow to 8.8 percent this year from 6.8 percent in 2018, according to EMarketer Market-leader Google will see its share slip to 37.2 percent from 38.2 percent. Selling more video ads opens a new 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.

Comments

Amazon wants in on big data

[BringsApples]

"Big Data", the unannounced catch-phrase of the early 2010's. Amazon didn't have faith in the value of Big Data. Looks like they're changing their minds.

Re:Alternate headline

[jellomizer]

I remember back in the day when Amazon was an Online Book Store. A great tool, to buy college textbooks at a price much cheaper then what the college book store sold them for, if you were really lucky you can find a GASP! Paperback version of the book, for a fraction of the cost of the hard cover.

Then they sold book related products, and went to electronics.

At what point

[kaatochacha]

Does someone say "You control too much, Standard oil, I mean Amazon".

Re:At what point

[Oswald McWeany]

Does someone say "You control too much, Standard oil, I mean Amazon".

It's not illegal to have your hand in many different businesses. They can't even be accused of being a monopoly. Walmart is a bigger retailer. They don't have more than 50% of the cloud market. Amazon Prime for TV is outshadowed by Netlix and Hulu. Their delivery service is smaller than both Fed Ex and Oops. When it comes to tablets Apple and Samsung sell more.

They have their hands in many pots but they're not the biggest player in any of them.

Amazon To Launch Mobile Ads

[Rosco P. Coltrane]

is yet another bane the world didn't need.

Why would I want that?

[sinij]

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.

So Amazon is planning to show video ads while I search for products to buy from them? This makes no sense, it is like shopping channel introducing commercial breaks.

Re:Why would I want that?

[DogDude]

So Amazon is planning to show video ads while I search for products to buy from them? This makes no sense, it is like shopping channel introducing commercial breaks.

As long as lazy Americans won't have to move their fat asses any more than they do now, they'll submit to anything. They're fine with giving up all of their personal data in exchange for a minor convenience. They won't care about this.

Re: Why would I want that?

[sinij]

Sure, but interrupting my shopping for flooblebuzzle to get me to buy fluddergunk is risky. What if I decide that I don't after all need flooblebuzzle?

That is, if I am already shopping, why show me commercials in hopes to get me to shop?

Does online advertising actually work.

[az-saguaro]

Here is a general question, inspired by these article but not specific to it. I would love to hear what Slashdotters think.
What is the value of advertising to the ad buyer? Is there any?

I understand why internet advertising exists. It has been the only way to monetize services that do not necessarily have a sponsor, investor, tangible product catalog, or other revenue stream. So, Google and Facebook can give away free services but still make money. For the advertising platform, advertising is the whole game.

But, what about for the advertiser? I know why advertising can be important for a company, like raising awareness of your products, establishing customer rapport, etc. I understand where the promise of internet big data advertising comes in - targeted audiences, so the advertiser theoretically pays less to reach a smaller but more apt group of potential buyers.

But, does it work? Do ad buyers get any meaningful return on their invested ad dollars? I am not suggesting that they do or do not, I just wonder what the reality is. Do they advertise because they feel they must, a "keeping up with the Jones's" cultural expectation of the internet age? Are they persuaded by some internet business consultant, perhaps equally clueless, for no reason other than "you must, you must"? Do some companies get meaningful results from advertising while others do not?

If I, as a private desktop personal user, just bought a $1000 monitor for a new computer rig, I will not be buying another such item for a few years. So why do I immediately get bombarded with ads thinking that I am a hot prospect monitor buyer? It is a wasted targeted ad that some company just wasted their advertising dollar on.

So, that is the question I am curious about. This move by Amazon obviously benefits Amazon. But, does internet advertising actually bring any value to the advertisers, on average?
Any thoughts?