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Amazon in the digital advertising market


When I heard the name of Amazon, the name of a large e-commerce service company floats in front of me. But Amazon is no longer limited to e-commerce. Since its inception in 1994, the company has become a giant of today's technology world through many dramatic transformations. Apart from selling retail books, e-books, selling personal products, even services like cloud services, as well as online video world Amazon's reign is now But Amazon does not stop here. Running into a 'Digital Advertising' business world, creating a tough stance. A report by the Economist has come out of Amazon's new field jump

There is a lot of reason behind the fact that digital advertising is interesting to the world. Only when calculating the US market, the eyes will be on the forehead. Here the digital advertising market is 11 billion and 100 million US dollars. To catch the market, Amazon must walk a lot. Amazon and Facebook as a solid rival of Amazon Facebook have occupied 37 percent of the US market and 21 percent holds Facebook. There was only 4 percent of Amazon's occupation. But the good news for Amazon is that they started fast after being quickly popular. Beginning in 2012, Amazon is fast approaching the digital advertising market.

Market researcher E-Marketing said Amazon would be the third largest digital advertising market in the world by the end of this year.

The Economist says that another great advantage of Amazon is that they have huge databases in their hands. Although Google and Facebook are behind a lot, Amazon advertising has started to have a great impact on the company. In 2011, income from Amazon advertising sales exceeds $ 800 million. There is the very little cost of their management here. That is, their operating profit in this sector is more than 300 billion US dollars.

Brokerage House Piper Jafri Michael Olson said that by 2021, the amount of income from Amazon ads would be more than the most attractive business cloud computing. Amazon now loses its core e-commerce business. But the fat income from advertising can be compensated by it.

Investment bank Morgan Stanley analyst Brian Noyak said Amazon will use huge benefits from digital advertising and cloud services to expand business in new countries.

But it is difficult for Amazon to challenge Google and Facebook right now but nothing is impossible. As with Facebook and Google, there is information that can be used to advertise the information that is available to Amazon. Amazing information about their internet browsing-related information, including the history of purchasing buyers 'purchases, buyers' review history. An additional benefit to Amazon is to analyze the purchasing of purchasers. 56 percent of US citizens currently search in Amazon before buying a product.

Dragging retailers as a brand for Amazon will not be difficult. Retailers will want to draw different product manufacturers by offering different offers. US $ 20 billion in the market in the US Amazon is interesting to such product makers.

But there is some fear of hope. Amazon advertising but not all businesses. Organizations who do not sell goods through their site, they may not be able to advertise in the Amazon. Especially fashion brands, car makers or travel companies may be reluctant to go to Amazon. But in this case, online video can be a powerful weapon to drag them. Amazon publishes their online gaming site 'Twice' video ads. Amazon may add advertisements to their prime services to attract advertisers if they want.

If Amazon wants, their voice assistant or virtual software may be brought under advertising. Amazon Smart Speaker Echo also has the possibility. In the future, when people will speak with Alex or give an instruction through voice, the advertisement may be advertised. At the beginning of this year, Amazon advertising with some organizations for advertising such advertising was discussed.

There are three barriers to Amazon running in digital advertising. The first hurdle is to consider whether the customer is moving away from Amazon advertising. If the ad is heard when talking, it will create annoyance. Those who watch videos with money, they will not want to see advertisements. The customers who have been satisfied so much, Amazon will not want to hit them.

The second consideration will be the conflict of interest with the Amazon Vendor or trader. Advertisers can buy ads to show ads on product search. In this, the deal with the dealer will be bad. Since Amazon itself is the producer and the seller, so the difference with their own products will be created. Therefore, Amazon must determine the importance of advertiser's products or their products.

According to the research by the investment bank RBC Capital, the Amazon app does not show sponsored ads as the top search result only three times when searching for 100 products. These three products are Amazon's two smart smart speakers and Kindle e-Reader. Competitor product manufacturers may be angry with Amazon.

The third thing is that the Amazon must actively maintain an environment of the control system. In September, the European Commission announced the use of Amazon's information on the use of information. In advance of the investigation, Amazon will be more interested in the practice of advertising.

Amazon has not been so disturbed by the problem of privacy issues. Jonathan Nelson, Digital Advertising Agency, Omnonym, said that Facebook aims to target advertising using personal life and friend graph. Amazon governs it relating to commercial relations.

According to research analyst Anders Analysis, Matte Linen said that if Amazon's advertising business increases, its control will increase. Amazon puts some control in the hands of users. It can control how much information the user shares for advertising.

As much as Amazon can take the user's information in their hands and learn about their shopping habits, the more their database will be rich. This will move the Amazon Growth Wheel more quickly.

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