Report: Amazon building ad system to compete with Google's

The system may resemble Google's AdWords for keyword-targeted ads

Amazon plans to expand its small online ad delivery business enough to take on Google's AdWords, according to a Wall Street Journal report.

The company is developing a platform for delivering ads both on its own properties and other sites, potentially creating a significant new source of revenue for the e-commerce giant, the report on Friday said. The move could also reduce the number of Google-delivered ads on Amazon's own site.

Amazon has told potential advertising partners that it could begin testing the platform, currently dubbed Amazon Sponsored Links, later this year, the report said.

Given its scale and access to shopping information, Amazon might be able to challenge the dominance of Google's AdWords, which fuels that company's US$50 billion-a-year advertising business.

Many of the ads on Amazon's pages now are supplied by Google, though Amazon does place some product ads on its own site and has a small business supplying ads on other sites. With the new system, Amazon would expand its own program to handle more types of ads, said the report.

The system would resemble Google's AdWords, which places keyword-targeted ads alongside Google's search results and on millions of other websites, the Journal said. Its technology would let ad agencies buy ads in bulk, possibly for thousands of advertisers.

Beyond that, there weren't other details on how the reported system would work. Amazon did not immediately respond to comment on the report. A Google representative declined to comment.

Google is by far the dominant player in search, and Amazon would surely face challenges scaling its own system to compete. But the platform, should it eventually launch, could be a big success for Amazon, given all the information it has on people's online shopping habits.

And as Amazon expands its home delivery services, such as Amazon Fresh, the company could gain new valuable data for a more robust advertising program.

Amazon's new Fire smartphone could also provide new data, and real estate, for targeted ads.

Zach Miners covers social networking, search and general technology news for IDG News Service. Follow Zach on Twitter at @zachminers. Zach's e-mail address is zach_miners@idg.com

Join the CMO newsletter!

Error: Please check your email address.
Show Comments

Supporting Association

Blog Posts

Behaviour change, by design

​We’re living in an age of unprecedented change. We experience with Oculus Rift, invest with Acorns, consume video through Hyper, tune into Pandora and navigate with Waze.

Glen Jeffreys

Head of UX, Deepend Group

Chat bots: How to use them commercially right now

I’m sure that many of you out there have heard a lot about chat bots (aka messaging bots) recently, and the fact that they are here to stay is pretty evident by now.

Deniz Nalbantoglu

Managing director, Webling-Interactive

Top tips to uncovering consumer insights for business innovation

An in-depth understanding of consumers sits at the heart of what we all need to do, but we know it’s not always easy to uncover insights that will unlock a true innovation opportunity.

Matt Whale

Managing director, How To Impact

Great read, thanks for posting. MR should be seen as the holy grail for marketers and brands, as it offers an unprecedented capability to...

Barney

Interview: The business case for mixed reality in marketing

Read more

what a load of shit, and what a major stuff up... the new brand device is sterile, boring and just plain bad. Would be better suited to a...

James Yoi

Tennis Australia unwraps new brand identity for Australian Open

Read more

Cool stuff. https://blogs.adobe.com/digita...

Mary

Design thinking: Leading with experience

Read more

Conversation commerce is a double edged sword. Do it right and it can create customer delight. Do it wrong and it can lose customers.

Jinal Shah

Why conversational commerce is going to reshape customer engagement

Read more

I liked how Kmart decided on what to source- by placing a notional or real camera in the place of use, seeing what is touched the most in...

Jinal Shah

Kmart CEO details priorities to turn Target around

Read more

Latest Podcast

More podcasts

Sign in