Electronic commerce giant Amazon has already remolded and took over the online landscape and is now quick to dive into a new, highly profitable field: online advertising, where it is promptly rising as a major competitor against Google and Facebook.
According to a CNBC report, the move by Amazon means consumers -- even those who are subscribed to Prime, paying $119 a year to access free shipping and stream music, video, and discounts -- are likely to be bombarded with ads in places where they didn't exist before.
Many analysts were intrigued by category labeled "other" in the company's most recent financial results. The category consists of revenue from selling banner, display, and keyword search-driven ads or "sponsored products." The "other" category rose by about 130 percent to 42.2 billion in the first quarter, compared to the same period in 2017.
The numbers are small for Google and Facebook, which make up most of the $88 billion digital ad market. However, they are accompanied by hefty and concerning implication for the two tech giants.
Most online advertisements are dependent on imprecise algorithms that overlook where marketing messages pop up, and what kind of effect they have on actual sales. This is where Amazon has a big advantage over other digital ad players. Because of its abundance of data and analytics on consumer shopping habits, Amazon can place ads in front of clients when they are possibly looking for specific products and accept them as suggestions instead of intrusions.
The online retailer is gaining in advertising when Google and Facebook's public perception has turned peevish. Moreover, some advertisers haven't made a comeback to YouTube, a rising ad channel for Google, after brands like AT&T appeared in videos that promoted racism and terrorism.
"Google and Facebook have been slow to create the standards that advertisers want to see," said Collin Colburn, an analyst at the research and advisory firm Forrester. "They are concerned about what sort of content their ads are going to be placed next to."
He further said that Amazon is different due to the company's "more controlled environment on its e-commerce site" and the reach of the company to the rest of the World Wide Web is "pretty small."
아마존, 백조원 규모 온라인광고 시장 노린다
美 전자상거래 업체 아마존이 880억 달러(약100조원) 규모 온라인광고 시장에 진출, 구글 및 페이스북 등을 위협하고 있다.
최근 뉴욕타임스(NYT)에 따르면 아마존은 이미 온라인 소매업계를 장악했으며 새로운 영역인 온라인광고 시장에도 진출하고 있다.
아마존은 전자상거래를 통해 올해 2350억 달러(약 262조원) 수익을 올릴 전망이다.
분석가들은 아마존의 올해 1분기 재무제표 중 '기타' 항목에 주목했다. 주로 배너나 키워드 검색 광고 등으로 인한 판매 수익이었는데, 전년 동기 대비 약 130% 증가한 22억 달러(약 2조 5,000억원)를 기록했다.
온라인광고의 대부분은 마케팅 메시지가 나타나는 위치와 실제 판매에 미치는 영향을 결정하는 모호한 알고리즘에 의존하는데, 아마존이 강점을 가졌다는 분석이다.
소비자의 쇼핑 패턴 분석 데이터 덕에 아마존은 특정 상품을 쇼핑할 가능성이 높은 예비 고객에게 광고할 수 있고, 이러한 고효율은 광고주에게 매력적으로 다가갔다.
아마존의 선전은 온라인광고 시장 양대 강자인 구글과 페이스북에 타격을 입힌 것으로 나타났다.