Amazon's Next Secret Business

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