Amazon to launch mobile ads, in threat to Google and Facebook

Amazon to launch mobile ads, in threat to Google and Facebook

Earlier this month, according to a report from Bloomberg, the EC's Vestager said that a preliminary investigation into Amazon's practices is "quite advanced" and that she would "like to take more decisive steps" before her term ends later this year.

Amazon has emerged as a fast-growing challenger in the digital advertising market since it captures 50 percent of all online sales in the US.

Citing emails sent to Amazon vendors in addition to conversations with individuals familiar with the matter, CNBC reported Wednesday that Amazon recently began informing some of its brands that it will no longer allow them to pay to promote their products on the platform if those goods don't turn a profit for the e-commerce behemoth. Indeed, eMarketer predicts that companies will spend nearly $16 billion on video ads alone this year as such content becomes increasingly popular among smartphone users. Google LLC remains a much bigger player, however, dominating the digital ads sector with a 38.2 percent share of the market in 2018. Amazon added more product videos to its site two years ago to dissuade shoppers from going to YouTube or Instagram to watch video demonstrations and testimonials from influencers. A spokesperson for Amazon told the site that it "decides which products to market and promote in our stores based on a variety of factors, such as relevancy, availability, profitability and other factors". Analysts note that the new mobile video ads are an expansion of features the company has tried on its own products including the Fire TV and the Kindle reader.

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Soon Amazon shoppers are going to get hit by video ads on their mobile apps.

Amazon putting video ads inside search results could disrupt the shopping experience for customers, which is why this seems like a very slow rollout. Amazon will ask those interested to advertise their products on its mobile apps budgets of at least $35,000 to run the spots at 5 cents per view for 60 days. "This creates a new format for them and another way to sell space on the platform".

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