Google is the most dominant companies when it comes to collecting data and spinning that into effective ads. Amazon is looking to wet its beak in the ad game and in a way, it is taking a direct approach similar to Facebook and Google.
Amazon will be calling its approach “Amazon Sponsored Links.” According to The Wall Street Journal, Amazon will allow for ad agencies to buy ad space or slots in bulk, ensuring that they have a large pool of eyes to cater to. From there, the agencies place ads in specific demographics for clients.
To make Amazon Sponsored Links more alluring, the company is also building a system that would pay site owners anytime someone views an ad on their site. What that means is that the more site owners who jump on board, the more ad space for ad agencies to buy up.
In the same way that Facebook has a vast, deep pool of users at its disposal and can craft ads depending on user data, Amazon has registered users at its disposal and can draw data from buying habits. However, the nature of that data would probably be more similar to Google drawing data from searches.
This is where Google and now Amazon could benefit since what they’re looking at most of the time can be manifested into something that can be advertised and possibly result in views and purchases. In Amazon’s case, the entire foundation is based on commerce whereas Facebook’s foundation is more socially based and Google’s is more search/pursuit of information. It would look as though Amazon is in a prime position to make an impact in advertising.
Amazon plans to launch “Amazon Sponsored Links” later this year.