Amazon is working on its own online ad platform, as the online retailer looks to utilise its massive amounts of user data to serve ads relevant to their buying habits, in a bid to challenge Google’s dominance in the display sector.
The ‘Amazon Sponsored Links’ service will initially replace Google’s AdWords ads that appear on the online retailers pages.
However, in time, Amazon plans to expand these ads to external websites, in a bid to rival Google’s DoubleClick ad network.
The platform will service both desktop and mobile advertising, and Amazon is already working with potential ad partners, with tests running later this year.
Amazon is also developing an ad exchange platform that will let ad agencies buy in bulk for thousands of advertisers.
Amazon has not fully described how the new system would work, but a brief description from its Media Group site said: “Sponsored Links are advertisements related to your recent product search query or content on the page and are always clearly labeled. Amazon.com displays sponsored links sourced from third-party networks.”
Amazon has often been referred to as a “sleeping giant” in the ad industry due to its vast amounts of under-used consumer data, and this move looks to address that problem. The online retailers insights into the shopping habits of its almost 250m active users could make it a potent tool for marketers if it does expand the platform to a wider scope.
