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Digital Ad Spending Is About to Change

When you think about ads that you see when surfing the web, what two companies immediately pop into your head? For years, the two tech giants, Facebook and Google, have shown complete dominance in the digital advertising space. Their dominance online seems like it’ll never end, especially with how our smartphone devices now listens to our every word and displays ads on Facebook based on those real life conversations we have. If you’re a digital marketer, do you even consider displaying ads anywhere else? Why should you throw away money that won’t get nearly the same reach and impressions as an ad on Facebook and Google will get you? That’s how dominate these two companies are, they don’t even get you to consider the other options.

 

However, it appears all of that is about to change, at least in terms of the pure dominance that Facebook and Google have. There’s a new contender that is starting to show a lot of promise and even starting to gain a little momentum in terms of market share. I am of course talking about Amazon.

 

It should come as no surprise that Amazon wants a piece of the digital advertising pie. Amazon has been getting into nearly every market imaginable and doing so with a high degree of success. No one thought that Amazon would be able to go head-to-head with the once online streaming giant Netflix, but now Amazon has more and more on-demand video content and original programming, and you can even watch certain shows on Amazon that you can’t get Netflix and Hulu, like the ever popular USA television show Mr. Robot. To further emphasize this point, no one in their right mind thought Amazon Web Services would succeed with the likes of Microsoft showing dominance for years, but here we are with more and more companies looking to move to Amazon Web Services over Microsoft’s platform.

 

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When you think about it, Amazon investing more into digital advertising makes sense seeing as Amazon owns lots of devices that they can display targeted ads onto. With Amazon’s Fire TV sticks and boxes, devices that allows you to stream content like Netflix, Amazon Video, and Hulu straight to your TV, Amazon will be able to gather specific demographic data solely based on what you watch, and then Amazon will be able to directly target specific groups of people with ads based on those people’s data that Amazon collects. Seeing as we currently live in a binge-watching culture, consuming hours upon hours of digital programming every day, this is significant as it only guarantees that your ad will display while someone is searching for content to watch.

 

This goes beyond Amazon’s Fire TV sticks and boxes, with Amazon pushing more and more people to buy their discounted Fire smartphones that displays ads right onto the device, Amazon will be able to get even more hyper focused with their targeting as they’ll be able to geo target and display certain ads based on someones geographic location. If you’re a digital marketer the thought of displaying hyper targeted ads to a specific subset of people within your market is nothing but ideal, especially if your ad will display right on someones lockscreen on their smartphone device. Why is this important you might be asking? It’s simple, if you’re a car dealer and want to take down your competitor right across the street from you, you’ll be able to show an ad of your car dealer that only displays when someone walks into your competitors dealership.

 

Let’s also not forget about Amazon’s smart speakers, Alexa. Alexa is in more homes now than ever and this brings a huge digital advertising opportunity to companies. Amazon’s Alexa will be able to collect even more data on what a person’s interests are based on just everyday listening, and then will be able to show you even more hyper targeted ads. If you own an Alexa device and then go browsing on Amazon, the possibility of seeing an ad based on something that you talked about is very likely. With Alexa devices becoming more affordable as time passes, this brings the opportunity of high market penetration.

 

With Amazon’s desire to take down Facebook and Google and be the new king of digital ad spending, it’ll be interesting to watch what exactly they do to take control of the market. With each passing day, it seems that Amazon wants to shift focus on being a digital advertising company first and online retailer second, which would directly rival companies like Google and how they’re a digital advertising company first, search engine second.

 

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