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 newsletter!

Error: Please check your email address.
Show Comments

Blog Posts

How to leverage the Internet of Things to understand consumer intent

'Intent' is the single largest performance marketing variable. It shapes our search queries, dictates our purchase paths and mediates meaningful interactions with brands regardless of channel, media or content type.

Oliver Smith

Business development, Performics Australia

3 ways customer data can increase online sales conversion

Data has been an increasingly critical factor in improving the efficiency and effectiveness of marketing and business operations.

James Bennett

Chief experience officer, Kalido

Our sharing future is both terrifying and exciting

Discussing the future in a realistic fashion is often a disappointing prospect. For all the talk of hoverboards, jetpacks and lightsabers changing the way we do things, the reality tends to end up being something as mundane as a slightly cheaper way to get around the city.

Jason Dooris

CEO and founder, Atomic 212

Hi James, shouldn't marketers also be focusing on collecting and utilizing up to date first-party profiling data on customers so that mes...

Tom

3 ways customer data can increase online sales conversion

Read more

Wouldn't reconnecting with younger consumers be in direct contravention of the code on alcohol advertising?

Tim Palmer

Vodka Cruiser reconnects with younger consumers via category-first Facebook Live campaign

Read more

Thanks for the article Jennifer, you raise some interesting points. The supermarket and shopping centre examples particularly struck a c...

Jill Brennan

Why marketers should take note of social robots

Read more

Winning the retail game is really tricky at this point in time. Many retailers have declared themselves as bankrupt. But yes harnessing t...

Vanessa.M.Magers

​Bricks and clicks: Balancing digital and physical to win the retail game

Read more

Excellent article, Thank you.

Steve Beards

How Aprimo hopes to help marketers tackle distribution of content, funds and data

Read more

Latest Podcast

More podcasts

Sign in