One of the big stories in advertising this past year has been the emergence of Amazon’s
real-time bidding ad exchangeas both an important source of revenue for the company and a major player in the online advertising ecosystem.
But while Amazon is estimated to make $US835 million in advertising revenues this year, the notoriously secretive company has kept a lid on many of the details surrounding the platform many in the advertising industry refer to as a “sleeping giant.”
Yesterday, AdExchanger’s Kelly Liyakasa published a story in which she spoke with several adtech insiders about their dealings with the Amazon Advertising Platform.
While Amazon seems to be teasing ad buyers with the potential offered by its massive worldwide audience, the company does not yet appear to offer the sort of conversion metrics rivals Facebook and Google are giving their clients. A “conversion” is counted every time someone purchases a product he or she has just seen an ad for.
Rob Griffin, global director of product development at Havas Media, told AdExchanger that electronics companies that use Amazon for reselling don’t know how well their advertising campaigns are doing.
“They get new customers, but they don’t necessarily know who they are, how [products are] selling or what the conversion rate is,” Griffin said. “What’s interesting is, [Amazon has] rolled out these new ad products and these adjacent sort of publishing ‘offerings’ for consumers and now it becomes, ‘What if I made that data available to you?'”
Indeed, the data could help Amazon blow its competitors out of the water. As the go-to ecommerce retailer, the company has access to the extensive purchase histories of millions of customers, offering advertisers insights about customer preferences, as well as the opportunity to target people who are know to have already bought certain products.
“If they open up their data pipes to their advertisers and we can pull that in to our clients’ data management platform and combine that with direct revenue I’m driving to the website through paid media, all of a sudden they can show attributable value they’re bringing to the table,” Griffin told AdExchanger. “I think once they do the attribution element, they win.”
Disclosure: Amazon founder and CEO Jeff Bezos is an investor in Business Insider through his personal investment company Bezos Expeditions.
Disclosure: Jeff Bezos is an investor in Business Insider through his personal investment company Bezos Expeditions.
Business Insider Emails & Alerts
Site highlights each day to your inbox.