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

The competitive advantage Australian retailers have over Amazon

With all of the hype around Amazon, many online retailers have been trying to understand how they can compete with the American retail giant.

Joel Milligan

Performance manager, Columbus Agency

How to become the customer experience custodian

The number one objective enterprises give for embarking on a digital transformation is to improve customer experiences with new engagement models, according to IDC’s 2017 global study.

Fear not: It's only a robot

Every time I pass through the automated border controls at the Sydney airport I walk away with a feeling of exasperation on the one hand and relief on the other. Exasperation, because the face recognition technology inevitably always fails to recognise me. Relief, because we seem to be safely years away from the Orwellian reality of states controlling every aspect of our lives; something the media is keenly warning us against each day.

Dan Kalinski

CEO, iProspect Australia and New Zealand

And to add after looking at event pictures plus, observing all AU's visible Blonde Bimbos (think Julie Bishop to this Georgie Gardnerare)...

absolutelyconcerned

In pictures: CMO 50 2017: The who's who of Australian marketing leadership

Read more

CMO 50 2017 announcement mentioning "innovation". I checked date and its November not April so its wasn't an April Fools' Joke. Australia...

absolutelyconcerned

In pictures: CMO 50 2017: The who's who of Australian marketing leadership

Read more

I worked at Momentum when the transformation started way back in 2013 (not 2015 as stated in the article). It was a painfully slow and co...

Jay

How Momentum Energy has transformed its entire business to be customer-led

Read more

Another buzzword thoughtlessly latched onto, without any thought for the implications on the organisations that have to lumber through th...

Tired

Rolling out agile marketing at Deakin

Read more

Useful., also don’t miss out on these 5 features of Adobe Experience Cloud - Visit here > http://www.softcrylic.com/b...

Sunil Joseph

Adobe debuts Advertising Cloud, Experience Cloud

Read more

Latest Podcast

More podcasts

Sign in