Friday, January 19, 2018

This Is Amazon's Master Plan to Become Profitable

http://fortune.com/2018/01/19/amazon-profits-advertising/


Google and Facebook have been leading platforms to advertise, with massive amounts of data about customer behavior. The data they have and the ability to allow marketing campaigns target and acquire new customers have driven their revenue. Recently their has been a shift in Amazon being used not only for shopping, but also as the initial product search platform over Google and other search engines.

As online commerce has grown and many brick and mortar stores are known as "showrooms" for online retailers, so has online advertising. But if the preferred online advertising platform shifts to the retailer, it will change advertising efforts as well. The article mentions how some firms are already recognizing the trend and shifting resources to feature their products as they used to in physical stores. Will this shift see an increase in advertising in other online retailers? How can other stores monetize this to their benefit?

Google and Facebook will find partnerships and new methods to limit Amazon's growth in this area. Brands should look for strategic alignments with one of them to challenge their competitors that dominate Amazon's display ads.

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