Beijing December 27 morning news, according to multiple advertisers and technology partners disclosed that Amazon has been quietly in their own websites and other services to test advertising products. The company plans to force digital advertising in 2018. Sources said Amazon hopes in mid-2018, will focus on e-commerce search and video advertising products.
In addition to its own website and products, Amazon also hopes to sell ads elsewhere. One source, for example, said the company is working with third-party mobile ads such as Kargo in hopes of selling ads on television and mobile devices.
Sources from the advertising industry also said Amazon is expanding its advertising department staff, especially in the New York area. At the Q2 earnings conference in July, Amazon CFO Brian Olsavsky said they would recruit more advertising salespeople.
Data from research firm Magna Global shows that in 2017, the global digital advertising industry has a market size of 209 billion U.S. dollars. The agency predicts that the total size of the digital advertising industry will rise 13% next year to reach 237 billion U.S. dollars. The United States is the largest country in the world for digital advertising, with advertisers spending $ 40.1 billion in the first half of 2017.
Although Amazon does not currently rely on advertising to make money, eMarketer predicts the company is the fifth-largest advertiser in revenue in terms of revenue. Amazon in the U.S. digital advertising market, accounting for more than 2%. Pivotal data shows that Amazon is currently behind Google and Facebook, both together accounted for 70% of the digital advertising industry market share.
In order to end the monopoly of Google and Facebook, many advertisers are looking for other advertising platforms, and hope to allow Google and Facebook to start a healthy competition. And Amazon is a very potential choice. Some digital advertisers say Amazon is willing to share more user data with advertisers than Google and Facebook, as long as the advertising budget is large enough. Therefore, advertisers are very welcome to Amazon in the field of digital advertising force.