Amazon has already taken the lead in e-commerce and e-books. Signs point to the company attempting to become a big player in mobile devices and tablets.And now it looks like Amazon is going to try to become an important online advertising company, too. Look out, Google.
The company has posted several job openings related to advertising.
And as Macquarie Equities Research analyst Ben Schachter notes in a report today, the postings include several bold declarations:
- “Third party advertising on Amazon’s retail websites is one of the company’s fastest growing and most profitable businesses, and Amazon itself is making significant investments in display advertising across the web.”
- “Display Ads is one of the hottest tech sectors… Amazon is uniquely positioned to leverage our culture of customer obsession…and change the industry.”
- “The New Ad Products group was recently formed to build advertising systems to address new market segments.”
While plain-old web advertising is a solid place to start — Amazon already operates there, selling ads to third parties on Amazon.com, IMDB, DPReview, etc. — we expect to see Amazon get into mobile and tablet ads, too.
Via its Amazon Appstore for Android, Kindle e-books, and potential forthcoming tablet devices, there will be a LOT of Amazon ad inventory to fill.
And if Amazon is really going to go big with ads, don’t be surprised if the company invests in, partners with, or acquires some ad companies, either. Specifically, some of the mobile ad startups could potentially be good targets.
Advertising is a marketplace as much as buying books or cloud server capacity. (And it’s a big one: Display advertising alone is a $30 billion market, Schachter notes.) And building great marketplaces is Amazon’s forté. So it wouldn’t be a surprise if Amazon did a good job in advertising.
This move makes sense.
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