Amazon’s nascent mobile ad business is already making $500 million in revenues per year, and is growing rapidly. The online retailer has been pushing ads on its website for quite some time now, but has only recently setup a dedicated unit to tackle the ever-growing mobile market.
Amazon’s vast customer base with demographic information gives it an edge over other players while offering a greater targeting options for advertisers.
“Amazon spent a lot of time developing algorithms to make recommendations to consumers shopping on Amazon.com,” an executive who oversees an ad exchange that is a partner of Amazon’s told the Reuters news agency. Yaakov Kimelfeld, chief research officer at Kantar Media Compete, said that he doesn’t see Amazon as a retailer anymore — rather it is the “largest behavioral marketing company in the world.”
Using its own demographic data, the company is able to bid on adverts in global publisher exchanges and more accurately target the delivery on behalf of its own advertisers. Yeah, we think Amazon is in the prime position to emerge as one of the leaders in this market… and we’ll get back to you as soon as we have something new to add to the story. Stay tuned…