The secret to delivering relevant ads is data. Demographic, psychographic, personal data. Google has data on what we search for, Facebook has data on what we like and share, but Amazon’s data may be the best of all for targeting ads. It has data on what we browse and buy.
That’s why yesterday’s revelations that Amazon is gearing up to launch its own ad network are particularly interesting: Amazon could offer retailers a much-wanted alternative to Facebook and Google ads, and Amazon may prove to be better suited than either of its rivals at putting ads in front of consumers that actually get clicked.
The new ad network, which Amazon is calling “Amazon Sponsored Links,” will also set up back end systems that allow ad agencies to “buy audiences” by buying ads in bulk. The agencies would then place ads on behalf of their clients based on the target audience demographic of the product.
Again, those ads would be targeted to consumers using a sophisticated real-time system that knows the viewer’s product preferences, as expressed by their browsing and buying history on Amazon.
If all this happens, Amazon’s new platform would look a lot like Google’s AdWords program, in which more than a million users bid on ad inventory on sites all over the web.
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SOURCE: Mark Sullivan