How Powerful the Amazon Ads is: The Backward Process
Amazon is aiming to the Ad market and has announced so many initiatives these days. They have a huge advantage over other ads networks: they know way, way more about customers than anyone.
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The Information shared a news on the recent move of Amazon to TV ad markets: Amazon will offer free TV shows for customers, with ads, via Amazon Fire TV and other compatible streaming video devices.
Obviously, the first bunch of victims will be direct competitors who also offer free TV contents supported by ads, like Roku Free Channel and existing conventional TV services, since the US TV ads market is so big as $70 billion ads revenue per year, and Amazon wants to expand its empire to this territory so fertile.
But I don’t believe that Amazon’s ambition is just limited to TV ad market. The real target they are firing at will be the whole digital ad market, and the existing leading players in this battle filed, i.e. Google and Facebook, will be impacted, conquered, hurt, in a massive way. I even wonder how they can fight back.
Why? To answer this question, we have to look at the way Amazon deal with Ads, a backward way compared to the competitors.
The essence of “traditional” ads: guessing
Guessing is the essence of how “traditional” ads works. Here “traditional” refers to no matter ads for prints, radio, TV, outdoor, or even the most state-of-the-art digital advertising. Ads networks use so many ways, try their best to figure out things below:
- Your preferences on brands, products and services
- The best moment, genre, channel, and ways to communicate with you
For example, Google and Facebook and other ads networks will monitor how you search, browse and consume informations on and off their platforms, and try to analyze, compute and…
