Amazon is planning on launching a real time bidding ad
exchange and is expected to $835million worth of revenue. However they are
keeping the details secret for now. Although the company does not offer the
conversion metrics(count of someone who has purchased a product they have seen
in an ad), they have access to the extensive purchase histories of millions of
customers. This will enable advertisers to target customers with certain
preferences and also customers who have bought certain products.
I think this could be a positive profit generator for
Amazon, although they do not really focus on profit. The customer information
Amazon had is different from Facebook and Google’s because it has the actual
purchasing patterns of customers and no other company can provide such massive
data except for Amazon. If I were a retailer thinking about spending money on
ads on the internet I probably will go with Amazon instead of Facebook or
Google. I believe Amazon will provide me with a more accurate customer target who
will be more likely to buy the products that I’m selling.
http://www.businessinsider.com/heres-a-glimpse-inside-amazons-secretive-800-million-ad-business-2013-10
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