Amazon will be stepping up its digital advertising efforts in 2018.
The US e-commerce giant has been quietly planning its advertising strategies across its portfolio, CNBC reported, citing several advertising buyers and technology partners.
In addition to new advertising opportunities on its e-commerce search and video products, Amazon is also teaming up with third-party mobile advertising companies such as Kargo to develop partnered television ads and mobile ad services, the report said.
Brian Olsavsky, Amazon’s chief financial officer, said earlier the company has increased its budget for hiring advertising sales staff, particularly in the New York City area.
Currently, companies can sponsor product listings so they will appear at the top of relevant search results on Amazon’s platform.
Following the digital advertising push, Amazon is expected to offer better algorithms to launch more personalized and targeted advertising services.
Media buying research firm Magna Global Digital estimates that a total of US$209 billion was spent on the business of advertising globally in 2017, and forecasts a 13 percent increase to US$237 billion next year.
Analysts at Pivotal, a US equity research company, said major players Google and Facebook have a combined market share of over 70 percent, while Amazon is trailing far behind with a 2 percent share.
Amazon’s plan is welcome news for most advertisers as it may force Google and Facebook to be more willing to share their data and offer lower advertising rates amid the growing competition.
This article appeared in the Hong Kong Economic Journal on Dec 28
Translation by Jonathan Chong with additional reporting
[Chinese version 中文版]
– Contact us at [email protected]