More articles by Richard L. Tso
Your Purchases for Sale: Amazon Enters Ring with RTB Advertising
Think about all of the information that the shopping giant Amazon.com has on you – your history of purchases, the friends you send gifts to, even your browsing habits and personal tastes for clothing, books, music, and food through its home grocery delivery service Amazon Fresh. While social networks like Facebook and Spotify receive a lot of heat over the amount of data they have on their members, Amazon.com is elegantly poised to leverage your shopping habits to provide advertisers with a better way to reach you online.
Unbeknownst to many outside of the ad industry, Amazon has been accelerating it’s move towards strategically entering the advertising ring. Over the last year, the company has been building its own real-time bidding ad platform that snaps into ad exchanges and integrators, including Google DoubleClick’s AdX and PubMatic. Once completed, Amazon’s will be able to retarget consumers with ads based on their purchase history and browsing behaviors on its etail shopping site.
This means big business for advertisers looking to more effectively target shoppers online.
While it is expected that Amazon will formally launch its self-serve RTB platform in early 2013, it is not yet known exactly how much personal consumer data will be used to fuel this ad platform. AdWeek reported that because Amazon is very protective of its data and providing outside access, like Facebook, Amazon’s platform would allow buyers to create target segments like “women; aged 25-34; in New York; interested in espadrille shoes; who have purchased books related to fashion and technology.”
It was already known that Amazon was entering the advertising arena. Wired reported in October that the company began offering real-time bidding to other advertisers earlier this year using technology provided by other ad-bidding specialists like Triggit, contributing to Amazon’s estimated 2012 ad revenue of $500 million to $1 billion.
Now that Amazon has built its own ad purchasing platform, this is an indication of just how serious the company has become about selling ads across the web. When a shopper leaves Amazon’s website to surf other sites, they all their shopping habits and past purchases will essentially travel with them and influence the ads they see across the web. The idea is that this will allow advertisers to deliver highly targeted ads and consumers will recognize the relevance, click and convert.
Sounds pretty great in theory, but are consumers actually responding to this mode of advertising? Is this type of ad targeting creating a more paranoid consumer, skeptical about this type of “Big Brother’” approach?
Only time will tell, but preliminary research indicates that people do respond to ads that are highly relevant to them. According to a research study by Jupiter Research on behavioral targeting, “Consumers are consistently more receptive to behaviorally targeted ads than to contextual advertising. In face behavioral outperformed contextual by as much as 22 percent.”
This stat seems pretty obvious, but for me, getting served ads like this one I got with my name in the creative can be a turn-off; it’s just a bit too targeted for my taste.
No comments yet
Leave a Comment
An Interview with Jasper Mullarney, VP of Direct Response Advertising, AdknowledgeADOTAS — Industry Veteran Jasper Mullarney is Vice President of Direct Response for Adknowledge, the fourth-largest digital marketplace behind only [...] more...
- Coverage of Microsoft’s Xbox Reveal Drives Spike in Adotas Readership May 22nd 2013 ADOTAS – Yesterday, just prior to Microsoft’s press conference introducing [...] more »
- Does Mobile Display Even Work? How Geo-Location and Cross-Platform Ads Will Change the Game May 22nd 2013 ADOTAS — The potential of mobile advertising is huge. And [...] more »
- Upcoming Event and Conference Calendar May 22nd 2013 ADOTAS – Here’s a snapshot of upcoming industry events. Further [...] more »
- From the Twitterverse: Gamers Hate On Xbox One May 21st 2013 ADOTAS – Microsoft has unveiled Xbox One, its next-generation entertainment [...] more »
- Brands & the Next Internet Wave: What You Need To Know May 21st 2013 ADOTAS – For brand managers and marketers, the Internet has [...] more »
- Blogshare: Why Tumblr Will Make Yahoo Billions May 21st 2013 ADOTAS (via WordStream) — Here’s why I think Yahoo is [...] more »
- Study: Xbox Reveal Sparks More Social Buzz than Galaxy S4 and Facebook ‘Phone’ Combined May 21st 2013 ADOTAS — The new Xbox gaming console, which will be [...] more »
- Does Mobile Display Even Work? How Geo-Location and Cross-Platform Ads Will Change the Game May 22nd 2013
- Brands & the Next Internet Wave: What You Need To Know May 21st 2013
- Blogshare: Why Tumblr Will Make Yahoo Billions May 21st 2013
- Preview: What’s Happening at Internet Week New York 2013 May 20th 2013
- Video from the Westchester Digital Summit May 17th 2013
- Client Relationship Manager
- Print and Web Manager
- SEO Marketing PPC Specialist
- Marketing Summer Internship at Clean-Tech Educatio
- Service Line Manager - Digital Media
- Coverage of Microsoft’s Xbox Reveal Drives Spike in Adotas Readership: [...] The live video post was the third most read article of the day, followed
- Coverage of Microsoft’s Xbox Reveal Drives Spike in Adotas Readership: [...] most popular article of the day was our live #XboxReveal Twitter feed, which ran
- Coverage of Microsoft’s Xbox Reveal Drives Spike in Adotas Readership: [...] live video post was the third most read article of the day, followed by
- Coverage of Microsoft’s Xbox Reveal Drives Spike in Adotas Readership: [...] prior to Microsoft’s press conference introducing the Xbox One, we posted the results of