Amazon to launch mobile ads, in threat to Google and Facebook

Proof that Big Tech can be regulated without a breakup

HAS found a new way of annoying its users, with a plan to put video advertising in its smartphone apps.

Amazon already offers a variety of different ways to allow companies to advertise on its platform, though these new video ads could things a step further.

For the record, Amazon has emerged as a fast-growing competitor in the digital advertising market as it dominates 50% of all online sales in the U.S. As per people familiar with the product, Amazon is recommending 15-30 second videos, adequate for a shopper who is browsing search results. Video ads will start appearing on Amazon's iOS app very soon, but the United States giant plans to launch a similar product on Android devices later this year. The video spots appear after mobile users search for products in Amazon's shopping app, which researcher App Annie said was the tenth-most frequently downloaded app in the United States previous year. Amazon is already faring better on the digital advertising space by increasing its market share by 2% in one year.

Mobile video ad spending in the U.S.is expected to rise 22.6% to $16 billion in 2019, and continue growing every year until it hits almost $25 billion in 2022, according to eMarketer.

Operating an ad platform on top of a service like search or social media or retail sales opens firms like Google, Facebook and Amazon to additional anti-competitive charges.

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Earlier, the online retailer used product descriptions, consumer reviews to determine which product was more relevant on a particular page.

From the last couple of months, the Washington-based, multinational technology company was beta testing the ads on the iOS platform and the fields trials seem to be over now. Amazon added more product videos to its site two years ago to dissuade shoppers from going to YouTube or Instagram to watch video demonstrations and testimonials from influencers.

Amazon has avoided selling advertising space on its site from years, not to disrupt shopping experience.

Reportedly, Amazon has decided ad budget of $35,000 to run spots for 60 days at variable price of 5 cents per view depending upon the category.

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