Friday, May 11, 2018

Amazon Stops Buying Prized Shopping Ads on Google - Bloomberg

Big shifts ahead in the digital advertising complementor/competitor model

"Right now, Amazon offers similar sponsored product ads on its flagship e-commerce site. Mizuho Securities USA Inc. recently estimated Google’s product ads are four times as effective as Amazon’s at getting people to buy. However, the brokerage firm said Amazon could improve and surpass Google. The note concluded that most spending on Amazon ads comes from marketers switching away from tradition offline ads, rather than cutting into Google budgets.

Still, other analysts see Amazon’s massive web reach, subscription base and voice search services, such as Alexa, as the gravest threat to Google’s business. A broader standoff over ads would add to an already tense year."
Amazon Stops Buying Prized Shopping Ads on Google - Bloomberg
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