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Amazon to Introduce Ads in their App

It has become a common occurrence to see ads displayed on whatever website or app that you use. Well, expect to see more of them when you go shopping on Amazon.

Amazon has decided to start displaying video ads to online shoppers as a way to make more money for the company that seems like it doesn’t have enough money in the world.

This has been a part of a several months long beta that Amazon has been testing out on their mobile apps. According to a Bloomberg report, this rollout will be coming to the Android and iOS versions of Amazon’s mobile app in the coming weeks. The video ads that will play to users will be about search items that they have been looking at.

It will also include shoppers’ tips and how to items that Amazon sees as a way to make people stay on their app instead of leaving the app to look at videos of the product on sites like YouTube.

It is reported to be a way for Amazon to break up the monopoly of video advertisement that Google and Facebook have set up for themselves. Amazon will now account for at least 8.8% of the digital advertising market, while Google still claims over 37%, which is a decrease of 1% from last year,

Amazon is also increasing their budget to show ads online by 22%, equaling $16 billion for this year.

Amazon sees the opportunity to increase their value by doing this, and we will see in the end whether or not this will work for them.

 

Photo from Mobile App Daily