Amazon has earned a reputation being a ‘sleeping giant’ in the world of advertisement. It’s the world largest online shopping portal and the company has harbored a trove of shopper-spending data. A lot of marketers have call it a great opportunity.
Creating Internet Advertising Network
The company for years has run ads on its own website and now it has taken its initial steps in becoming an Internet advertising network. It has earned the knowledge of placing targeted ads from some of the reputed advertisers across the web. Last year the company had launched Amazon mobile ad network and now the company is releasing ads via apps on tablets, iPhones and smartphones.
Amazon – A Competitor
The ad business is a new way to earn revenue and to keep a profitable margin than the retail operations. Now Amazon is posing to be a threat for the leaders like Google, Microsoft, AOL and Facebook. Now Amazon is aware what you have searched for and what all you have bought and this type of information is very lucrative for the advertisers. Data is similar to gold in the present marketing world.
The company has made an effort to listen to the demands of the advertisers. They type of data required and the kind of scale you are searching for. According to an analyst, the online advertisers have a profit margin of 20-30% which is just opposite to 5% for the Amazon’s retail business.
Finally Amazon did not disclose the advertisement business outcome.