Running video ads triggered by product searches within Amazon's closed environment in the shopping app on the mobile phone could prove lucrative for the marketplace. This comes as a major threat to google which is also about to launch a similar feature on its Android platform in late 2019.
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.
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. According to a report, about sixteen billion dollars were used for advertising via mobile applications. Market-leader Google will see its share slip to 37.2 percent from 38.2 percent.
Operating an ad platform on top of a service like search or social media or retail sales opens firms like Google, Facebook and Amazon to additional anti-competitive charges. Amazon will ask those interested to advertise their products on its mobile apps budgets of at least $35,000 to run the spots at 5 cents per view for 60 days.
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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.
From the last couple of months, the Washington-based, multinational technology company was beta testing the ads on the iOS platform and the fields trials seem to be over now. Prices can vary by category and not everyone pays a fixed rate, said another person.
Notably, the e-commerce portal already includes buying guides, product videos, how to's and DIY videos on its site and if the report turns out true, the new video ads will be an add-on to the list.
Amazon has avoided selling advertising space on its site from years, not to disrupt shopping experience.