According to the Wall Street Journal, Amazon has intentions of starting its own advertising network that would compete with Google AdWords and Facebook ads. The new advertising initiative will be called Amazon Sponsored Links.
Most of the advertisements you currently find on Amazon are actually sponsored by Google and the company naturally intends to replace those ads with their own ad placement platform.
Although it will be difficult to compete with Google AdWords and Facebook ads, speculators say Amazon has one big advantage over both Google and Facebook: shopping data. There is a science to delivering the right ads to searchers and Amazon will have data on two very important pieces of the puzzle – browsing history and what people buy.
Google of course has information on browsing history but they don’t have a lot to go on in terms of knowing what searchers buy. Facebook places ads in front of users based on what people “like” and “share.” The buying information will certainly help Amazon play catch up in a competitive market.
We certainly don’t believe Amazon is going to replace AdWords or Facebook ads, but because of the unique buying data they’ll have we think Amazon Sponsored Links will be a great addition to our client’s advertising options.
It is being reported that Amazon Sponsored Links will launch later this year.
We’ll keep you posted on Amazon’s advertising initiative as more information gets released.