Amazon is looking to move further in on Google’s turf with an expanded ad network, which would aim to rival AdSense. This is something that consistently disappointed investors would relish.
Amazon invests a lot of money on future growth, and as a result has difficulties with posting profits. A solid ad network business could be just the thing to turn that around.
The Wall Street Journal reports, citing people familiar with the matter, that Amazon plans to replace Google ads with its own, generated from its own platform, which would challenge both Google’s and Microsoft’s businesses in “the future”. According to the report, the company has told potential ad partners it may begin testing the platform called “Amazon Sponsored Links” later this year, and that it would make it easier for advertisers to reach Amazon’s active users. The Journal reports:
To displace the Google ads on its site, Amazon is building a tool to help advertising agencies buy in bulk for potentially thousands of advertisers, the people familiar with the matter said. Building such a system could enable Amazon to boost its business placing ads on third-party websites. Google offers similar capability for advertisers using AdWords.
According to the report, Amazon’s offering would also go head to head with Google’s ads that appear on over two million other sites.
Separately, Amazon has launched a display ad network with CPM ads for members of its Amazon Associates program.
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