Amazon Testing Out Shopping Ad Tool To Rival Google
After pulling out of Google shopping ads last week, Amazon is set to launch its own platform for display ads to rival Google and Criteo.
According to Bloomberg who spoke to those familiar with the matter, the marketing tool will let merchants selling on Amazon purchase places which will follow online shopping to ‘lure the consumers’ back to Amazon.
The pull out from Amazon was spotted by marketing firm Merkle Inc through its analysis of Google shopping ad data it tracks for clients.
An analyst at the company says Amazon would have spent close to US$50m a year on Google shopping ads yanking a reliable piece of income for the search engine giant.
At the moment the merchant ads only appear in search results for sponsored product. This new platform will allow for merchants to bid on ads that will appear on various websites and apps. Merchants will only need to give Amazon money when someone clicks on an ad.
Criteo, a French based internet advertising company is another big player in the online ad industry. Its advertising works hand in hand with online retailers which will show personalised online ads to consumers who have previously visited the online retailers website.
This type of online advertising is a huge industry with Criteo generating US$2.3bn in revenue last year because of its targeting technology, according to Bloomberg.