That's according to a new Bloomberg report, which went on to note that this rollout is coming to both the iOS and Android versions of Amazon's mobile app, with the brief video clips playing in response to search queries generated by users within the app.
Amazon hasn't commented thus far about its mobile video ad plans. The video spots appear after mobile users search for products in Amazon's shopping app, which researcher App Annie said was the tenth-most frequently downloaded app in the United States previous year.
As per reported by NDTV, Amazon has grown fast in digital advertising market as a challenging competitorafter capturing 50% of online sales in United States. That was based on our forecast that Google's share of the digital ad market would decline by about 2 points in 2018, while Facebook's would rise by less than 1 point.
Amazon, through a spokeswoman, declined to comment.
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E-commerce giant, Amazon.com Inc.is reportedly testing a new ad feature for its shopping app that allows brands to display short video of their product on the platform's search results. Amazon's decision to include video ads in its mobile app is quite surprising considering that the company rejected the idea for many years for fear of confusing customers shopping on its website.
"This is more about providing advertising opportunities to third parties, with Amazon owning the platform", Mueller said. Earlier, only the product descriptions and consumer reviews were available for the users to make up their mind.
It's a continuation of the incremental addition of video to Amazon's site, which has included things like how-to's and product videos that shoppers might otherwise have left Amazon's site to seek them out from a destination like YouTube.
Amazon's ad practices surfaced by CNBC this week once again underscore the extent to which it can impact the vendors trying to tap its hefty market share - and with little to no warning - even if it affects the respective bottom lines of those brands. The report citing people familiar with the matter said that the mobile ads for the Android platform are planned for later this year. Amazon is requiring a $35,000 ad budget to run the spots at 5 cents per view to run the ads for 60 days, one person said.