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Last week, Amazon became the third digital advertising platform in the US, behind Google and Facebook. This is great news in a sector that continues to undergo massive consolidation.
Amazon has fundamentally upset all categories, from books to servers, and now it is focusing on the advertising industry.
I'm a fan of Amazon,
but I think it's a category where she will not be at the top of the list. At best, Amazon can hope to be the number two ad.
Google is the Goliath in advertising and Facebook has become a
number two strong, but Amazon is especially a challenge for Facebook rather than Google.
Google is well diversified in advertising between search and display, in addition to
owns many of the backend systems used by advertisers to reach their consumers. Google has inventory, data and services, and in many cases Amazon relies on Google for
lead people to his site.
publicity
publicity
Once users are on Amazon, Amazon has just as much information about them and what they are looking for and buying.
Google and Amazon are the dominant
Digital commerce players, while Facebook is more focused on being a publisher than a platform. He owns the inventory, but the bulk of the trade is off of his pages, and
considered a second part in most of these relationships.
Another thing to consider is that Amazon tends to disrupt traditional businesses by playing the digital game better than they do.
– but no one plays digital better than Google. Google is in a unique position because it is ubiquitous.
What did Google do by taking research and developing in other areas of
The lives of consumers, even becoming a verb en route, could not even have been imagined at the time by Lycos, Excite and Infoseek. Google has far exceeded anyone's expectations
could have, except people at Google themselves.
Amazon is cut from the same fabric – and neither company stagnates. Both continue to develop in new areas
weekly and monthly basis. By stimulating innovation, they also consolidate the space around them, providing tools and services that make it easy for advertisers to focus on a few keys.
partnerships, with Google, Facebook and Amazon at the top of the list.
If I were on Facebook, I would be more worried about Amazon than Google should. Facebook has a lot of data, but
Amazon has more, clearly related to consumption and buying behavior. Amazon also has a media empire with Amazon Prime and has access to other data via AWS. These various
Business categories may seem disconnected, but they provide a higher level of connection than Facebook.
Moreover, Amazon is rarely sucked into the
conversation around "fake news" or privacy like Facebook. Facebook has become a much more controversial lightning rod than Amazon – which just keeps on humming,
quietly sell everything you need and deliver it right to your door, even put it in your house when they have the keys. What other digital company literally has the keys to your
House?
Amazon is making great progress and disrupting all kinds of industries, but it will be interesting to see if Google is on the path to ultimate global dominance.
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