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Send force online advertising

Amazon is the world's first big web retailers, but the company is now actively expand the online advertising, so inevitably and the field of overlord Google into conflict. In this Christmas shopping season, Amazon in its website promotion other products service Amazon Product Ads surfacing, become one of the important part of the retailers network marketing channel.

Amazon for the display in advertising business departments actively recruiting talents. Amazon Adzinia Media Group advertising department of office space in New York recently doubled, reach six square feet ($5574 square meters). Amazon also make full use of its web site more than 100 million month time of traffic and sales of other companies advertising, these companies in order to attract the large potential user group, willing to pay to the amazon.

Although amazon so could be lost part of users, but for the company to create a profitable new revenue sources. Macquarie securities analyst Ben gaza's cut (Ben Schachter) said: "the online advertising profit margins of traditional business, higher than amazon to expand a strong interest in advertising business."

According to the market research institutions eMarketer data show that the United States this year online advertisement market scale will increase by more than 20%, at $30 billion a barrel, the 2015 is $50 billion, this is mainly benefit from display advertising shot up. Gaza, cut, points out, display advertising provider's profit margin is as high as 20% to 25%, and amazon traditional margins often between 5% and 6%.

More targeted advertising

Amazon currently in including Amazon. Com, IMDb. Com and DPReview. Com, web site launched its products in large advertising and display ads. Gaza, amazon will cut is expected to expanding the scope of advertising to other web sites. Amazon will thus become Google, yahoo and Facebook direct competitors. EMarketer data shows, Google, yahoo and Facebook in the online advertising market ranked in the top 3 armour. Gaza, cut, points out, ValueClick will also become amazon rivals.

Gaza's cut, said amazon has the detailed user personal data, can use them to make more relevant and real-time display advertising. When a user access site, amazon's data may help to make sure this person is a state's residents, recently from amazon's website to buy a paper diaper such specific products. Gaza's cut explained, in this kind of situation, amazon.com and then play the real-time display advertising to make adjustments, sales promotion babies and infants thing.

Gaza's cut in the fourth quarter for the first time that amazon began tracking advertising, and yahoo, AOL, Google and Microsoft corp. 's YouTube MSN display advertising. He points out that the fourth quarter show advertising appeared frequently in the Amazon. Com home page, where a quarter is p&g, philips and other company's daily consumer goods advertising. Although amazon for future advertising strategy his mouth shut, but since February, this company display advertising business department issued several recruitment information, recruiting more than 30 employees.

This week in the amazon's official website said: "we use amazon world class personalized technology, incomparably user data and interactive video content, are building a new generation of advertising products." Amazon, a spokeswoman said the company products (Product) and Display (Display) two advertising business is currently and gamble and Microsoft "thousands" of advertisers cooperation, but she refused to disclose further information.

Competition overall upgrade

Amazon positive advertising market into the act shows that the company involved in the network shopping every field and Google competition is fierce. Traditionally speaking, when the user online search plans to buy goods, Google now occupy absolute superiority, and amazon is more focused on the background-that is to sell product and process orders.

According to the report, Google is working with retailers will negotiate delivery service, once reach a deal, the service will be and amazon Prime service form competitive relationship. Prime services to the price of $79 a year to provide free delivery service, and for the user to provide free streaming movies and other services. EMarketer electronic business analyst Jeffrey case lowe (Jeffrey Grau) said: "with the overlap of business is more and more, Google and amazon between the two giants of the competition is fierce."

Many shoppers to begin nowadays in the Amazon. Com search product, rather than Google's search engine. Case labor explained, the online flow, and with the amazon in users buy huge data, can help build the amazon more targeted advertising products. The case said: "Google with the pressure will be more and more big. Amazon has become one of the important Google threat, because in shopping process it can be more early contact users."

Business has great potential

Amazon launched advertising business has at least three years. According to the American e-commerce company Mercent CEO Eric Best (Eric Best) introduction, Amazon Product Ads advertising services released in 2008, but it was initially Christmas shopping season in will attract the attention of the user. Mercent business is to help retailers through the Amazon. Com and eBay such web site selling more products.

Christmas shopping season early this year, Mercen customers in the Amazon's sales, about 10% from Amazon Product Ads, compared with the same period last year a little change. Best says, in "network Monday" on the same day, Mercen customers in the third party electronic market Amazon sales year-on-year growth of 35%, and through the Amazon Product Ads sales of products output was up 88%.Including HSN, large furniture retailer sites Wayfair, Wine retail website Wine. Com and the US-Mattress, the enterprise all through this channel selling products. The data shows, the American jewelry retailers in MBM Company from Thanksgiving to "network Monday in sales, 44% through the Amazon Product Ads this platform to realize, total sales increased by 4% compared with the same period last year.

Involved in the new product category

The company e-commerce marketing director, Jon Mr Zack SuTe (Jon Ozaksut) said: "it really for us is a good news." According to he introduces, MBM have part of the advertising budget from other channels to Amazon Product Ads. Like. Com was the biggest comparison shopping channel MBM.

Mr Zack SuTe said, Google in 2010 bought Like. Com, "feel the site by some left out in the cold, since we don't often use this year. Most of the time we are looking for comparison shopping search sales field of new overlord, and amazon now is in this position."

Through the Amazon Product Ads this platform, Amazon can also be involved in some new Product category, and at the same time, do not want their Product sales. For example, Amazon will not sell Wine, but the company and Wine. Com a new cooperation relations, the latter in the Amazon Product Ads on the advertisement. When the user in the Amazon. Com search Wine products, through the search results page of the relevant advertising products, they will be oriented Wine. Com website.

Wine. Com CEO rick berg Thornton (Rich Bergsund) said: "at present in this way the volume is small, but I estimate will substantially increase next year. By this channel that amazon can participate in Wine sales, and need not dealing with regulators, also won't meet transport across state Wine complex problems."