Amazon to introduce mobile ads to its app

Amazon has made yet more changes to its advertising strategy as it begins testing mobiles ads with a view to challenging Google and Facebook.

According to a recent Bloomberg report, Amazon is poised to start selling video adverts on its widely used mobile app.

The ecommerce giant has reportedly been beta testing the service on the iOS platform for months, and a similar programme will reportedly be rolled our on the Android platform later this year.

Advertisers will now be able to pay for their videos to appear when a customer is searching for things to buy on Amazon, potentially leading to a greater conversion rate than adverts on Facebook or YouTube when shoppers aren’t looking to purchase anything.

READ MORE: Amazon bans vendors advertising “CRaP” unprofitable products

It is understood that advertisers will pay on a cost-per-view basis, rather than a cost-per-click basis which is currently the standard on Amazon’s marketing platform, with a minimum spend of $35,000 (£27,000) over 60 days.

This follows news that Amazon has banned vendors from advertising non-profit making products in a further shift to its increasingly lucrative advertising strategy.

It has reportedly been telling vendors and wholesalers on its platform that if a product sells for less or as much money as it costs to store, pack and ship, it will no longer allow them to advertise it.

It is understood that these products are referred to by Amazon as “can’t realise a profit” or “CRaP” for short.

Advertising is one of Amazon’s fastest growing and most profitable arms, seeing its revenues more than double last year to $10.1 billion (£7.65 billion), a figure expected to grow another 50 per cent this year.

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AdvertisingApps / MobileNews

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