The Silicon Review ^Asia

Amazon has plans to tap into the $129 billion digital advertising market which is currently dominated by Facebook and Google. In order to do that, Amazon will be focusing on selling video spots on its shopping app. Beta tests on the ads are already been continuing on Apple’s iOS platform for several months. The e-commerce company will soon develop a similar product for the Android platform as well later this year. However, there has been no public announcement regarding the plans.

Amazon is emerging to make its mark in the digital advertising market, and selling more video ads will bring a new opportunity for its advertising division to generate revenues. Usually, consumers have a higher tendency to go for products when they are on the app rather than when they are surfing through Facebook or YouTube. So video ad spots, like television commercials can help in better product promotion. According to estimations from Emarketer, brands are going to invest around $16 billion on mobile video advertising that is 22.6 percent higher than the spendings in 2018. Moreover, advertisers are increasing investing their time and efforts to make brief video snippets to target consumers on the go. Ads like this can be commonly found on YouTube and Facebook.

Amazon has restricted itself from selling space on its website for advertisements so that it doesn’t come in the way of offering seamless shopping experience for the customers. It rather depended on product descriptions and consumer reviews to find out how a product ranks on its page. With the recent mobile video ad push, Amazon hopes to add more product videos in its platform.