Amazon is testing video adverts for its Android and iOS apps

Amazon to Compete with Google and Facebook with its Own Mobile Ads

The report comes from Bloomberg, which said Amazon is testing a new service that involves selling video advertising spots on its smartphone shopping app. Now the marketplace plans to add mobile video ads triggered by searches. The mobile video ads will put Amazon in more direct competition with Google and Facebook, which now dominate the digital ad market.

In the past, Amazon had been reluctant to load up its platform with intrusive advertising that would interfere with the shopping experience, but the company's approach continues to be more inclusive of advertising as revenue from ad sales grows rapidly, in part because Amazon offers some key advantages for brands over Facebook and Google, the dominant platforms.

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As per the speculations made by EMarketer, Amazon may raise its share of the digital advertising market from the existing 6.8 percent to 8.8 percent. Amazon is already faring better on the digital advertising space by increasing its market share by 2% in one year.

Interestingly, the e-commerce channel already hosted a series of videos like product videos, buying guides, DIY, and how to's and the video ads are said to be a part of the same. Such ads are common on YouTube and in Facebook streams. Earlier, only the product descriptions and consumer reviews were available for the users to make up their mind.

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From the last couple of months, the Washington-based, multinational technology company was beta testing the ads on the iOS platform and the fields trials seem to be over now.

"They roll out these new experiences slowly to see if it disrupts the shopping experience and see if it's something advertisers want", he said. People watch video demonstrations and testimonials on YouTube or Instagram which many a times links post to another online shopping websites.

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Amazon requires marketers to spend $35,000 to run the spots at 5 cents per view for 60 days, although those prices vary by ad category, per Bloomberg. "This creates a new format for them and another way to sell space on the platform".

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