Amazon to Take on Google with AdWords-like System
This could be a biggie. There are reports circling the internet regarding a plan being brewed at Amazon. Apparently, they are getting ready to take on the internet giant Google’s ad system with one of their own.
According to The Wall Street Journal, Amazon will soon be launching their own software for the online advertisement market that is expected to work like Google AdWords. As Google AdWords is responsible for a huge chunk of revenue earned by Google (over $50 billion per annum) and is not the only competition that Amazon will face, I am sure that the road ahead won’t be easy for the e-commerce giant.
That being said, it is expected that they will initially use the ad system to kick out Google from their own pages and replace it with the in-house platform. Later on, they would go worldwide to include millions of other websites.
For the Seattle-based online retailer, this won’t be the first time they would venture into the advertising business as they already have a system placing ads on other sites on a limited scale. Currently, new types of ads are being tested.
The said system is being dubbed as Amazon Sponsored Links and if unleashed according to the plans of the company, it would come backed by the 250 million user strong information database they have – courtesy of online shoppers.
Naturally, Amazon is well acquainted with the way people search the internet and how consumer preferences work; they could put all the knowledge they have gained while toiling for online retailing to good use in the online advertisement business too!
It has been claimed by unknown sources that the system is going to be similar to Google AdWords in so far as the engine works around keyword targeted ads on over two million other websites. Also, Amazon is currently hard at work on creating the tool that will sell ads to agencies in bulk.
While it looks like a very lucrative venture, with a potential of more revenue than what Amazon has earned in all its life, toying with the online advertisement business is no walk in the park. Google AdWords has been working on it since the year 2000 and it has claimed serious chunks of Google’s revenue to get there. They also happen to have over a million advertisers pushing for ad space.
Amazon has been inching closer towards the cash cow model of Google and their other ventures in an attempt to mimic their business recently. However, I am sure this would be one of their biggest endeavors so far.
That being said, for now all this is based on rumors and supposed inside information as both Google and Amazon have neither confirmed nor denied it. It would be wise to wait a little while before jumping to any conclusions.
Just to keep the rumor mill running though, do you think Amazon can pull of something as big as that?