Amazon to launch mobile ads, threatening Google and Facebook

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Amazon has found a new way to grab a chunk of the $129 billion digital advertising market now dominated by Google and Facebook: selling video spots on the e-commerce giant’s smartphone shopping app.

Amazon has been beta testing the ads on Apple’s iOS platform for several months, according to people familiar with the plan. A similar product for Google’s Android platform is planned for later this year, said the people, who asked not to be identified because they’re not authorized to share the information publicly.

The brief video spots appear in response to search results on the shopping app, valuable space for advertisers since people searching for products on the app have a higher propensity to buy than those scrolling through Facebook or watching videos on Google’s YouTube.

Amazon has emerged as a fast-growing challenger in the digital advertising market because it captures 50 percent of all online sales in the U.S. Amazon’s digital advertising market share will grow to 8.8 percent this year from 6.8 percent in 2018, according to EMarketer. Market leader Google will see its share slip to 37.2 percent from 38.2 percent.

Amazon, through a spokeswoman, declined to comment. A spokesman for Google didn’t immediately respond to a request for comment.
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