Amazon To Expand Its Advertising Platform

Amazon accounts for just 1.6% of the US advertising market

Amazon is looking to expand its advertising business in order to compete with the world’s largest advertising platforms. Currently, the ecommerce company’s share in the US advertising market stands at around 1.6%, compared to the 58% which is split between Google and Facebook. However, a report from Bloomberg has revealed that Amazon is attempting to set up a system more similar to that of Google’s, including new advertising tools and services. Analysts have forecasted that with the company’s close relationship with brands who sell within its own marketplace, advertising on Amazon may lead to quicker conversions. Another update expected by the company is the addition of paid advertising on its Alexa virtual assistant. The information that Alexa can supply to brands, such as preferred forms of entertainment, also gives companies an advantage that is not available through Google or Facebook. The CEO of WPP, the largest advertising space buyer in the world, Martin Sorrell, said that “the company that would worry me if I was a client, more than Google and Facebook, is Amazon”. 

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