Amazon's meetings are aimed at finding new solutions and initiatives to harness the potential of advertisers. Many people believe Amazon will be more open to providing advertisers with user data, such as what programs they are watching or what they are doing online.
Some people say Amazon will launch a program that will allow companies to collaborate with video producers to create sponsored content (containing advertising). And, of course, Amazon will receive commissions for those collaborations.In addition, Amazon has exchanged with a number of technology companies to find a solution to prevent inappropriate content from appearing in ads. This issue, called Content Adjacency, arose after a series of ads on YouTube as well as other Google platforms containing content on fascism and terrorism in March this year.
According to eMarketer, online video advertising is booming and becoming a new trend in the world. In the United States, the profit generated by this type of advertising has reached $ 13.23 billion this year. YouTube is one of the most profitable services and will account for 21.7% of the total profit from video ads.
However, advertisers are constantly looking for new platforms to increase competition among companies, especially those of a size and scope that are large enough to reach YouTube.According to data in the report for the first quarter of 2016, Amazon has about 310 million monthly service users, still far behind YouTube's 1.5 million per month. However, if Amazon accepts cooperation and discloses to advertisers about their customers' online preferences and shopping habits, that could create a significant turning point in the race, as well. will break the entire ecosystem as well as directly threaten YouTube's unique position.
Currently, Amazon allows users to post videos via Amazon Video Direct (AVD). Then, other users can buy or rent these videos, or they can watch them for free along with the ads. In addition, Amazon also holds a key card called Twitch - a video platform that allows livestream users to store content so they can watch it whenever they want.Although AVD's current advertising program is fully capable of comparing to YouTube, advertisers still do not really trust the service Amazon offers. Media executives say that unlike YouTube, Amazon has yet to provide information on ad performance (including return on investment). In addition, this company does not allow third parties to participate in testing the operation of advertising. Not to mention AVD ads are more expensive than YouTube.For these reasons, many companies believe that YouTube will continue to be the preferred video platform for advertising. But if Amazon is willing to provide more user data to advertisers, and allow outside analysts to use their information, they will become a formidable force that YouTube must be cautious about. .
Amazon has not yet spoken out on the issue.
