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April 25, 2019

Amazon extends video advertising to its mobile app

Written by Ceira O'Neill-Stewart
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Amazon keeps giving advertisers reason to capitalize on its growth as an advertising platform. We recently discussed how businesses can achieve results by advertising on Amazon via tools such as Sponsored Products and Sponsored Brands, which make your inventory more visible on Amazon. These features are important because Amazon is growing as a search-and-purchase platform. Amazon is also capitalizing on the growth of mobile video advertising by developing new features that advertisers need to know about. As Bloomberg reports, Amazon is about to launch video ads on its smartphone shopping app.

Why Video Ads on the Amazon App? 

The video ads, being tested on Apple iOS, appear in search results on the Amazon app. According to Bloomberg, Amazon requires a $35,000 ad budget to run the spots at 5 cents per view to run the ads for 60 days. Later in 2019, Amazon will run video ads on its app via Android, too. 

Video ads on the Amazon app give the company an advantage given that people are typically in a purchase mind-set when they are looking for a product on an app. In addition, according to the most recent Internet Advertising Report from the IAB

  • Mobile has grown to account for nearly two-thirds of digital ad revenue.
  • Nearly three-quarters of all users’ internet time is spent on a mobile device. 

Also, in 2019 the number of apps using in-app advertising is projected to grow by 60 percent.

As Bloomberg reports,

Selling more video ads opens a new revenue opportunity for Amazon’s advertising division, which mostly sells space featuring brand logos, product photographs and descriptions that are the equivalent of digital billboards. Video ad spots are similar to television commercials and can deepen the power of promotion.

New estimates from eMarketer predict that Amazon’s advertising business will capture 8.8 percent of U.S. digital ad spending in 2019 while Google’s share will drop by 1 point. In addition, Amazon’s ad business will grow by 50 percent to more than $11 billion in 2019. This growth is not surprising given how Amazon continues to launch new products. Amazon has offered video advertising for some time on Amazon and its properties including the Internet Movie Data Base (IMDB).

What Advertisers Should Do

It’s important that advertisers stay abreast of how advertising giants such as Amazon, Facebook, and Google are evolving their products. In particular, Amazon, Facebook, and Google exert an inordinate amount of influence on digital advertising given their scale. At Investis Digital, we have extensive experience working with these and many other platforms to through our paid media work.

At Investis Digital, our team of performance marketing specialists help businesses maximize the value of their paid media on digital. Contact us to learn more.

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