As we mentioned earlier here at Askbrokers, Amazon (AMZN US) is focusing more and more on its Ads business, as it goes after Google (GOOG US) and Facebook (FB). Recode has published an interesting report that seems to confirm the above. Recode writes;
See, for example, our search below for “cereal.” The first three results, which take up the whole screen above the fold — everything visible before you scroll — are sponsored placements that appear as search results: Ads for Kellogg’s Special K, Quaker Life and Cap’n Crunch. (It’s similarly dramatic on mobile, where it takes up the entire first screen.) This is followed by a section featuring Amazon’s own brand, 365 Everyday Value, which was part of its Whole Foods acquisition.
This focus on sponsored brands, will be positive for Amazon’s bottom-line, and could potentially as mentioned earlier be detrimental for Google (GOOG US) and Facebook (FB US).
We will continue to monitor the Amazon ad development as it will impact the entire space heavily.