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!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Blog Posts

3 marketing mistakes to overcome when courting prospective customers

Marketing that urges respondents to ‘buy now’ is a little like asking someone to marry you on your first date. At any time, only 3 per cent of the market is looking for what you’re selling, so the chances of your date randomly being ‘The One’ is pretty slim.

Sabri Suby

Founder, King Kong

Why are we dubious about deep learning?

The prospect of deep learning gives those of us in the industry something to get really excited about, and something to be nervous about, at the same time.

Katja Forbes

Founder and chief, sfyte

Why you can’t afford to fail at CX in 2019

In 1976 Apple launched. The business would go on to change the game, setting the bar for customer experience (CX). Seamless customer experience and intuitive designs gave customers exactly what they wanted, making other service experiences pale in comparison.

Damian Kernahan

Founder and CEO, Proto Partners

Red Agency YouGov Galaxy Report, February 2019 Predictors Study. https://redagency.com.au/re...

Vanessa Skye Mitchell

DNA-based marketing: The next big thing?

Read more

RIP holden

Max Polding

Marketing professor: For Holden, brand nostalgia ain’t what it used to be

Read more

Where does the claim that 2 million Australians have tested come from ? Anecdotal information suggests that this is way off the mark.

David Andersen

DNA-based marketing: The next big thing?

Read more

Thank you for the info , being part of a digital marketing agency in kerala , this proved handy and get to know with upcoming trends. htt...

Dotz Web Technologies

Predictions: 9 digital marketing trends for 2019

Read more

So who then is correct? The Research or The skilled Digital people.

Anene

Report reveals Australia faces digital skills shortage

Read more

Latest Podcast

More podcasts

Sign in