Competition Heats Up As Amazon Broadens Its Online Advertising Push

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There is a notable increase in the competition in the online advertisement as Amazon broadens its online advertising push. According to the New York Times, Amazon has been around in the advertising industry for a long time.

What is different though is the ferociousness that characterises the company’s current expansion drive. The online retail giant is report to be running adverts from firms that initially didn’t advertise on the platform. The reports detail that the companies already on the platform have ramped up the number of ads they run.

Although Verizon does not sell its merchandise on Amazon, the number of its ads on the platform has increased. It is now common to see ads from Geico and other major companies on Amazon. The New York Times reports that Amazon will “sell advertising spots on the Thursday-night National Football League games.” The company has signed a deal to live-streams the games to Prime customers from the start of the league.

Facebook and Google on edge as Amazon broadens its online advertising push

Analysts believe the Amazon offensive to be the largest ever assault on the online advertising market. Facebook and Google are currently the giants that gobble up approximately half of the $88 billion market.

The online retail company has increased the number of staff in the advertising department. At the same time, the company is reportedly “building out its capabilities” in the online advertising market. All these are in preparation to eventually earn the high profit margins posted by the reigning giants.

Treasures of consumer data

However, it is the kind of consumer data at the disposal of Amazon that analysts believe should worry the giants. Advertising on Amazon gives a brand exclusive exposure to the more than 100 million Amazon Prime members. The company collects millions of lines of data on consumer preferences and other cues that are valuable in advertising.

According to Gartner L2, an advertising research firm, there is a rise in the number of brands advertising on Amazon. The onboarding of firms like Verizon is positive news as Amazon broadens its online marketing push. Going by the revenue accrued from advertising ventures in the FY 2018, the push promises higher profit margins.

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