Amazon also is aggressively building out its advertising technology portfolio. The company is “developing its own software for placing ads online that could leverage its knowledge of millions of web shoppers,” the WSJ reports (paywall). Amazon supposedly has told potential partners that it could start testing a “new placement platform, dubbed Amazon Sponsored Links” this year. Amazon also recently debuted a new service that runs banner ads on other sites, called Amazon CPM Ads. (“CPM” is ad-industry jargon for “cost per thousand” ad impressions—referring to the way that banner ads often are priced and publishers often are paid.)
In other news, Google Shopping Express launched in New York. And how do they make a splash about it? By starting a charity program about backpacks. Btw, I have nothing against charity programs, but they could’ve done it anywhere & anytime, just the place & timing of it is borderline “evil”.
Anyways, coming back to the main point - both of them are basically trying to capture all the ways users want to spend money on. And then help others with this information so that they can sell their products better. It’s quite simple & in some ways sounds useful.
But if I’m selling a product today, I can’t definitely stay with just one of them & be done with it. I’d effectively end up paying even more. And most likely the cost hits the consumer. I believe product makers & consumers would see this in the long term and this inefficiency would break.
It’s not yet clear what would be the solution for the next gen, but it’d be something else.