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How Amazon plans to steal Google’s ads business

Jeff Bezos, Amazon

Photo credit: Amazon.

  • Amazon has articulated a strategy for its advertising business at an internal event. It promises advertisers the chance to target Amazon buyers who are ready to purchase something. This makes it a potentially more compelling option for advertisers than Google, due to the promise of higher conversions.
  • The ecommerce giant is betting on a strategy of using ads as an additional revenue stream to lower the price of the goods it sells. The approach could make Amazon a more compelling place to shop. Sellers can promote their products through advertising, customers get relevant ads for products they’re likely to buy.
  • Amazon has even started placing ads directly on Google to promote products on its marketplace, making it even more ubiquitous.
  • The company’s already making US$1.4 billion from its ad business, nearly four times that of Snapchat. It still pales in comparison to Google though: the search leader made US$19.1 billion from its ads business in Q2 2016 alone.

Source: The Information (paywall)

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Editing by Nadine Freischlad

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