Amazon: A Challenger to Google and Facebook Advertising?


What do people usually think of when they hear the term digital ads? For most, what comes to mind first is advertising on Google.




And for those who are more inclined to social media, on Facebook.






However, that sentiment may change this 2018

Amazon.com is reportedly poised on making a push into the digital advertising scene, according to many news outlets last December.

Many of CNBC's sources say that Amazon has been making advertising experiments last year. The company is said to be focusing on their e-commerce search engine and their video services and products. There are also rumors that it is partnering with mobile ad companies like Kargo.

But Amazon itself has been quite silent on what exactly its plans are.

As of now, Internet giants Facebook and Google are still the reigning champions of online advertising. They have taken more than half of the revenue in digital ads around the world. In the United States alone, they dominate around sixty percent of the digital advertising market.

According to Silicon Valley-based news publisher, MercuryNews:
"Amazon’s current slice of the digital advertising pie comes up at just 2 percent nationally and less than 1 percent worldwide."
There are speculations that the figure is small because Amazon has been very vague on how much money they are getting through advertising. Even so, it's not an impressive number for Amazon right now, even though it is the Internet's largest retailer.

But things could change for them. The digital advertising industry is growing rapidly. It is now worth hundreds of billions of dollars worldwide.

Amazon has the potential to shift the tides to their favor, due to its unique circumstances.


Aside from its numerous products and services, Amazon also owns several large companies and websites. These include but are not limited to:
  • IMDB
  • Audible
  • DPReview
  • Zappos
  • Double Helix Games
  • Goodreads
  • Twitch.tv
But perhaps the most notable and most beneficial acquisition that Amazon has is Alexa.com, which they bought back in 1999.

Most associate Alexa with Amazon's virtual personal assistant AI, who shares the same name with the company. The San Francisco-based subsidiary is an analytics provider. Their website states that they provide data on web traffic, rankings, as well as other data on thirty million websites around the world.

The group's insights into user behavior can be a big help in how Amazon will make it moves as a digital advertiser.

This, and all the companies they own, puts Amazon in a surprisingly good position. The tech giant can easily gain a considerable foothold in the online advertising industry if they play their cards right.

As on interviewed analyst, Brian Wieser, puts it:
"Facebook knows your interests, Google knows your intent and Amazon knows what you do commercially."
Amazon presents a very promising opportunity for advertisers. It should be noted, however, that it probably won't be dethroning Google and Facebook any time in the near future. But it's definitely not something that should be ignored, especially for businesses who want to expand their reach much further. A good idea would be to implement all three into their advertising strategy, for maximum exposure and sales.

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