Amazon Pursuing Mobile Video Ads, Strengthening Its Viability as Duopoly Alternative

Kelley Robertson
March 24, 2019

Amazon is reportedly making considerable efforts to launch mobile ads to grab the $129 billion digital advertising market which is now being dominated by Facebook and Google.

Amazon hasn't commented thus far about its mobile video ad plans.

That was the news in digital marketing on Thursday, as Amazon announced it would sell video ads on its mobile app.

As per the speculations made by EMarketer, Amazon may raise its share of the digital advertising market from the existing 6.8 percent to 8.8 percent.

The company has been testing the adverts in a closed group of iOS users over the last few months, Bloomberg reports, and is looking to expand it out to Android later in the year.

The brief video spots appear in response to search results on the shopping app, valuable space for advertisers since people searching for products on the app have a higher propensity to buy than those scrolling through Facebook or watching videos on Google's YouTube.

Brands will spend almost $16 billion on mobile video advertising in 2019, up from 22.6% in 2018, according to eMarketer. At the same time, a dip of about 1 percent in Google's market share of digital advertising is expected, which will pull it down from 38.2% to 37.2%. Such ads are common on YouTube and in Facebook streams.

With more consumers shopping on mobile, and Amazon's app a popular method for accomplishing this, video ads could turn into an important offering for Amazon. The initial sense was that any kind of advertising might be seen by the customers as a distraction to their main intention of shopping on the site.

With shoppers seeking out other destinations like YouTube, Instagram for product demonstrations and testimonials, Amazon began adding more product-related video content two years back, to prevent shoppers from switching to these channels. Amazon is reportedly requiring a whopping $35,000 ad budget for these new ad spots at 5 cents per view for 60 days, so the ad spots won't just be for anyone to run ads on, or even attempt to abuse.

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