3 ms·

The idea that Amazon will pose an actual threat to Google (audience breadth) or FB (audience granularity) is nuts. Just how I'm sure Apple also really felt it w

by dvt 8y ago

The idea that Amazon will pose an actual threat to Google (audience breadth) or FB (audience granularity) is nuts. Just how I'm sure Apple also really felt it when Amazon released the Fire Phone.

whoisjuan 8y ago
Except that's not how it works. Facebook, Google and Amazon have very similar audience outreach in the US. If you're company in US market with an online advertising budget of 100K, and you were spending that budget on Facebook and Google, you might also start considering Amazon. Of course it's a threat. Any company in this situation can shift part of their online advertising budget to Amazon, at the expense of ad dollars that were previously spent on Facebook or Google.
- dvt 8y ago
  Since reddit/Twitter/Snap wasn't a threat, I highly doubt Amazon will be. The fact that agencies might spend a few bucks here and there to "try out Amazon ads" is beside the point. As someone that has been working in ad tech for about 5 years now, I don't think you truly appreciate the reach and level of optimization FB & GOOG have.
  - whoisjuan 8y ago
    I think you're underestimating how incredibly dominant can Amazon be. Amazon is not Reddit/Twitter/Snap. They literally can do bulldozer moves into industries. Their ad placements are also very valuable. They already have the purchase intent that lacks in any of the examples you mentioned.
    - deleted 8y ago
      [deleted]
mcrae 8y ago
Why is it nuts? Last year Amazon did $10B in ad sales. That was double the year before. Google did about $130B for the same time period. Doesn't seem nuts to me that Amazon can grow their share of the pie quickly. They are #3 globally now. For context, AWS did about $25B and everyone raves about how high the margins are there -- I bet the ad margins are better! https://adage.com/article/digital/amazon-makes-quick-work-ad-industry-10-billion-year/316468/ https://adage.com/article/digital/amazon-makes-quick-work-ad...
- sct202 8y ago
  Amazon's ad sales are kind of a double edged sword though since most of their ads are from product vendors. If vendors need to spend X% of their revenue on Amazon ads to make sales, the prices of products on Amazon will rise to compensate for that new expense.

by dvt 8y ago

The idea that Amazon will pose an actual threat to Google (audience breadth) or FB (audience granularity) is nuts. Just how I'm sure Apple also really felt it when Amazon released the Fire Phone.

whoisjuan 8y ago

Except that's not how it works. Facebook, Google and Amazon have very similar audience outreach in the US. If you're company in US market with an online advertising budget of 100K, and you were spending that budget on Facebook and Google, you might also start considering Amazon. Of course it's a threat. Any company in this situation can shift part of their online advertising budget to Amazon, at the expense of ad dollars that were previously spent on Facebook or Google.

dvt 8y ago
Since reddit/Twitter/Snap wasn't a threat, I highly doubt Amazon will be. The fact that agencies might spend a few bucks here and there to "try out Amazon ads" is beside the point. As someone that has been working in ad tech for about 5 years now, I don't think you truly appreciate the reach and level of optimization FB & GOOG have.
- whoisjuan 8y ago
  I think you're underestimating how incredibly dominant can Amazon be. Amazon is not Reddit/Twitter/Snap. They literally can do bulldozer moves into industries. Their ad placements are also very valuable. They already have the purchase intent that lacks in any of the examples you mentioned.
  - deleted 8y ago
    [deleted]

mcrae 8y ago

Why is it nuts? Last year Amazon did $10B in ad sales. That was double the year before. Google did about $130B for the same time period. Doesn't seem nuts to me that Amazon can grow their share of the pie quickly. They are #3 globally now. For context, AWS did about $25B and everyone raves about how high the margins are there -- I bet the ad margins are better! https://adage.com/article/digital/amazon-makes-quick-work-ad-industry-10-billion-year/316468/ https://adage.com/article/digital/amazon-makes-quick-work-ad...

sct202 8y ago
Amazon's ad sales are kind of a double edged sword though since most of their ads are from product vendors. If vendors need to spend X% of their revenue on Amazon ads to make sales, the prices of products on Amazon will rise to compensate for that new expense.