Aiming to give a tough fight to search giant Google in online advertising, online retailer Amazon.com Inc. is going to launch its own system for placements of ads that will be based on its Web shoppers’ database.
A Wall Street Journal report said Amazon will replace ads provided by Google with its own ad placement platform while launching its first offensive against the search engine.
The daily, however, said that both companies refused to confirm the story or make any comment.
Industry insiders say the main objective of Amazon is to give a good alternative to Google’s ad world, which contributes to USD 50 billion businesses to the search engine. The online retailer is also eyeing to maximize its turnover by developing a better ad system against Google.
According to the WSJ report, Amazon has already set up a small ad placement business on other sites and after the new endevour it may expand the business with new types of ads to make more profits.
“Amazon could use the data it has about buying behavior to help make these ads much more effective. Marketers would love to have another viable option beyond Google and Facebook for their advertising,” the WSJ report said while quoting Karsten Weide, an analyst at researcher IDC.
Amazon is estimated to generate a whopping USD 1 billion from its online advertising services this year, a significant rise from last year’s more than USD 700 million turnover.
If the WSJ’s report is to be believed, Amazon’s new placement platform, called Amazon Sponsored Links, will be unveiled later this year. Citing anonymous sources, the WSJ report said Amazon’s Sponsored Links will be similar to Google’s AdWords.
Google Vs Amazon
This is not the first instance when both the leading companies in the technology world are at loggerheads, trying to pull each other. But earlier on several occasions too both Amazon and Google have given close fight to each other while keeping on testing the new products and services that the other offers.
For instance, Google gave close competition to Amazon’s e-commerce business by launching its Shopping Express. Amazon reverted back to the search giant by entering in the smartphone war by launching its own line. Also, Amazon offers online storage services similar to Google.