Several reports claim that the company is aiming to give Google some competition in the highly lucrative online marketing landscape with their proprietary ad platform. Word is that Amazon’s advertising product will be similar to Google AdWords in how it works, and will replace its own online ads and compete for ad share.
If successful, Amazon could very well shrink Google’s monopoly on online share once they replace their ads with their own. And the market is tempting for any tech company out there, what with more than $50 billion in sales a year.
Amazon’s new project will be called Amazon Sponsored Links, with no confirmation yet on when publishers and advertisers can try the platform out.
Furthermore, Amazon is busy developing a bulk-buying program for advertisers, which would enable the online retail giant to place ads on third party sites more easily. Reports by the Wall Street Journal indicate that Amazon’s online marketing system will roll out to users before the year ends, with the company already pitching ideas to prospective clients.
Needless to say, Amazon has their work cut out for them, should they choose to push through with their own platform against Google. The search engine giant didn’t just dominate the online marketing space overnight. It built its way from the ground up, boasting of more than 14 years of experience and along the way, amassing millions of advertisers and publishers vying for the limited ad space available to their respective niches.
This level of competition has not surprisingly sent prices for ad space soaring, which also means publishers are likely to stick with Google over another online marketing firm.
Although Google has yet to see another online marketing platform capable of toppling them from the top spot, Amazon certainly has a chance of being the company to do it. With the company’s strong experience and leadership in the online retail industry, Amazon has firsthand knowledge about the purchasing habits and behaviour of online shoppers—it’s this area where Google is at a potential disadvantage.
Moreover, Amazon apparently already has more than 250 million users actively using their platform, potentially giving the company plenty of data they could use to push their online marketing platform and rival Googles AdWords program. If the company makes the right moves, we at Enform could see a new player entering the online marketing space.
Of course, we’ve seen many companies out there introduce their own online marketing platforms as an alternative to AdWords with varying degrees of success. All of them, however, have fallen short to knocking Google off their perch.
We’ll have to wait and see if Amazon has the goods to make a strong entry into the online marketing scene. Anything less than spectacular might only result in failure.