Amazon is currently working on its ad business and is thought to be building its own bidder to be sold to trading desks as a competitor to services such as Invite
Reports also suggest that the internet company is building its own ad network and launching a possible alternative solution to Adsense.
ExchangeWire claims that Amazon has a huge opportunity because of the infrastructure that it has in place, particularly in the entertainment sector.
Developing the Amazon Film Network (AFN) would enable Amazon to deliver scale to a relevant audience. Amazon already owns IMDb and LOVEFiLM – “put both of these together and you have the foundation of a killer ad solution to take to market,” the article says.
If Amazon could combine its IMDb audience data with its LOVEFiLM data, it will be able to offer in-depth targeted solutions. “Amazon could own the entertainment ad vertical,” the article continues. “It’s an ad solution that only requires a data collection/management capability that plugs straight into an adserver and/or a DSP (dependant on the inventory acquisition strategy). Amazon already owns the content. It owns the audience. Bring it together and it might own the sector.”
Ad Age also claims that Amazon is Apple’s biggest threat in the mobile ad space, after it was linked with the mobile ad network Jumptap.
Amazon has recently hired Jamie Wells from Microsoft to build an ad sales team. At Microsoft, Wells led global product marketing for mobile display and apps. Amazon is currently the fourth most-visited site on smartphones in the US. It also has its own tablet offering, which has sold 5.5 million tablets since the Kindle Fire made its debut.
“But perhaps most intriguing, Amazon generates reams of purchase data”, Ad Age says. “The e-commerce giant already uses online-shopping data to power its own product recommendations and it would be hard for marketers to ignore Amazon if it incorporated some of that purchase behavior into mobile-ad targeting.”
The e-commerce business is currently selling special offer ads on its Kindle, the Amazon and IMDb mobile sites and on apps, which run on a range of devices. Amazon can offer one-click purchasing through ads because it has so many credit card details on file.