Amazon is arguably the most recognized brand in commerce online. According to compete, the company sees north of 73MM unique users monthly. The secret sauce of the company is a massive database of consumer purchases that it has accumulated over the last several years. The most obvious way they have applied this information, is to create purchase recommendations for users. What if they used that data to get into a new market?
Online display is multibillion dollar market and poised to grow rapidly as budgets move from offline media to online. Would it be that big of a leap to say that Amazon would not only be a channel for sales for products, but also be a channel for online Marketing Services (read : advertising) group that can quickly generate sales leads for your products?
Here’s the idea for the Amazin’ Amazon Ad Network:
1. Inventory: Amazon builds, or buys, a demand-side platform to access all the real-time inventory available via exchanges (ex: Google AdEx) or supply-side optimization solutions (ex: admeld).
2. Targeting: They create audiences segmented by purchase intent and retarget those users on display inventory around the web.
3. Dollars: Start with direct sales and ramp to self-serve promoted via Amazon.com
POOF – Amazon is in the ad biz.
If they really want to double down, they can partner with companies that are huge in the offline commerce space (ex: Amex) to supplement their intent profiles as well as with partners with huge web reach (ex: Clearspring – shameless I know) to extend the reach of this powerful network with lookalike models.
Sounds insane, right? I bet saying that Apple would be a player in the display ad market last year would have been insane too. Anyway, just a thought.
Disclaimer: This post is just a concept I have been thinking about. Concept = not real. @jeffbezos, feel free to ping me with questions. 🙂