Listen: Amazon knows what we buy, and it's turning that into a huge ad business
"This marketplace podcast is brought to you by. Indeed, are you hiring with indeed you can post a job in minutes set up screener questions than zero in on your shortlist of qualified candidates using an online dashboard get started today at indeed dot com slash marketplace. That's indeed dot com slash marketplace and buy evident from identity verifications to background checks and everything in between businesses can run accurate and comprehensive verifications easily and securely on a single platform all while minimizing exposure to users personal information. Learn more by visiting evident ID dot com slash tech to sign up and get started today, that's evident ID dot com slash tech. Amazon's information about what we are buying is turning into a really good ad business from American public media. This is marketplace tech demystifying the digital economy. I'm Molly would. You're how there's this sense that if Amazon gets into your line of work, you're in trouble. Well, Hello digital advertising. Amazon has been slowly building up its ad business. Leading brands target ads to people on Amazon dot com, and it's other sites like the live streaming platform twitch IMDB, which it owns and Zappa Zappa's. And then, of course, all across the web. And it's pitch is simple. Amazon is telling advertisers that the best predictor of what you the consumer are going to buy is the stuff. You've already bought a report out today from research firm emarketer says Amazon has been a distant third in digital ads behind Facebook and Google and is starting to look like a dangerous third Monica Pierre is senior forecasting director for emarketer. So over the next year, we expect to Amazon will cross over the fifteen. Billion mark. Meaning that it's definitely gaining share on the top to add selling platforms, both Google and Facebook and gaining over ten percent share in the market, which which will be quite a feat. When we think about not even being, you know, five or six percent in the past couple of years, and then tell me about the data advantage or the the data play that Amazon has I mean, it seems like it's taken people a long time to realize the potential power of Amazon, including maybe Amazon from a business perspective the power of Amazon, knowing what you buy exactly it. And that's really the true differentiator when we think of Amazon and in its competitors. Really? You know, Google certainly knows what we've searched for and Facebook definitely knows what we've liked who are connected to but Amazon. Will know what we bought and for advertisers that are selling products, that's really helpful to know. So this, of course, does rely on any e commerce at business relies on your data. Amazon has a lot of trust right now in with a lot of consumers at a time. When people are getting more mistrustful of the advertising yuko system and how much information it gathers is that a concern for Amazon at all that consumers might say. I didn't know you were gonna use my information this way, right essentially, it comes down to ease of use. And whether the customer is getting what they've asked the platform for and so such as it is with, you know, other platforms Google as long as you're returning the search results that that you're looking for consumers are can be quite forgiving about sharing information. So that's an opportunity, of course for Amazon. On. But it is something that consumers will start to think more and more about the question becomes whether advertisers. See that as a risk math, Monica Pierre, senior forecasting director for emarketer. And she says this realization that real time information about what people are buying might lead to successful ads who thunk right is also pushing other ecommerce companies such as wal mart to build add businesses too. And now for some related links as it happens. Bloomberg had a good story over the weekend about WalMart. And it's add ambitions, you can find that on our website. Marketplace tech dot org. One thing. It says is that WalMart actually has more US customers than Facebook Google or Amazon combined, but just hasn't figured out. How to take all that good information about what people like to buy and turn it into money, but Amazon's rapid growth in terms of advertising, certainly offering a new model. In fact, the story notes that target's grocery chains like Kroger and other brick and mortar stores are starting to make the same pitch to advertisers about how useful their data is for selling ads that get people to actually click and buy it's a super interesting development because it tells you that the race for who's going to win the internet era is definitely not over even though it feels like Facebook and Google have a lock on the whole thing. Sometimes I mean, advertisers are a mercenary bunch. They're looking for something called conversion rates that is the thing where we actually click and by. Instead of just ignoring ads, and if they start getting better conversion by buying out space from WalMart or target or Sears or Domino's pizza. Then all of a sudden Facebook and Google don't make so much money after all, and they're not so invincible, of course, Amazon could just end up being the most invincible of all. But either way the story is not yet written and it's possible that a new chapter is just starting. I'm Ali would. And that's marketplace tech. This is APN. Patrick in Santa Cruz. California wrote to us to say marketplace is an essential element in his life. And that we're helping make him smarter through high quality thought provoking and informative journalism to join Patrick and supporting what we do. Please donate online today at marketplace dot org. Thanks to Patrick and all the marketplace. Investors who make our work possible. This marketplace podcast is brought to you by Tokyo. Athletic making shoes for running walking, fitness and recovery off featuring their economy chromato- box, natural fit and low drop platform. Do your body a favor and visit towpath letting dot com slash tech. Enjoying others who've done their research. Get ten percent off your first pair using promo code tech at checkout on towpath letting dot com T O P O athletic dot com. Promo code tech."