Amazon.com as begun rolling out video advertising on its smartphone apps. Right now, almost all search results yields a graphical ad unit at the top of the SERP. Video ads for relevant products will begin appearing in those same positions, according to Bloomberg.
“Amazon has been beta testing the ads on Apple Inc.’s iOS platform for several months,” says the report. Amazon’s mobile app for Android will apparently be getting video ads later this year.
The Bloomberg report quotes unnamed persons familiar with the matter and says that “Amazon is requiring a $35,000 ad budget to run the spots at 5 cents per view to run the ads for 60 days, one person said. Prices can vary by category and not everyone pays a fixed rate, said another person.”
Amazon hasn’t reported ad revenues in earnings directly, as it is grouped in with “other,” which is dominated by ad revenue. Amazon reported $3.4 billion in “other” revenue in Q4 2018. This meas that Amazon’s advertising business exceeded $10 billion in 2018.
There are some articles that could try playing this up as a “threat” to something like Google or Facebook. According to a recent Amazon advertising survey by Search Engine Land, There is evidence that marketers are shifting budget from search and social. This typically is true for smaller marketers, but it seemed to be true across the survey.
Over the last several years, Amazon has built out its ad portfolio and has launched a number of new seller offerings and advancements for marketers, though it has a way to go to reach parity with Google or Facebook in terms of tools and reporting.