Posted under Business | | by , POP Herald

Amazon is building an advertising network to challenge Google Inc?

Online Advertising VectorRetail giant Amazon is reportedly building an advertising network that will give website owners and media companies a new tool to serve revenue-generating advertisements, Wall Street Journal’s sources are claiming.

The Seattle-based tech giant will initially launch the platform on its own site, replacing placements that are currently served by Google’s advertising network. And soon, the report added, Amazon could expand this network to third-party sites — and this could challenge Google’s Adsense and Adwords, and Facebook’s in-house advertising.

If actually makes sense that Amazon’s next target is online advertising. Firstly, Amazon already offers a mobile ecosystem that runs on its own smartphone, the Amazon Fire, and Amazon tablet computers, and secondly, Amazon is also running its own mobile application store — so thirdly is the missing piece of the list, and that is milking all online impressions, both in-app and on websites.

Amazon and Google’s rivalry is inevitable because both companies are generating revenue over the internet. Google’s main profit source is advertising, while Amazon is the go-to portal for online shopping especially in United States. Apparently, Google is already challenging Amazon’s core business — and so it’s understandable that Amazon is taking the second shot.

In addition to establishing a brand new profit stream, Amazon’s advertising network can also provide rich data — giving Amazon a better perspective about customer’s online behaviour, especially when it comes to purchasing items on the web.