Amazon to launch in-app video ads

Anne Freier

In Mobile Advertising. March 22, 2019

Amazon will be launching video ads across smartphone apps, according to a Bloomberg report. The short-form video ads will appear above search results and be targeted to match relevant products consumers are searching for.

Amazon has apparently been testing the ads using Apple’s iOS platform for a few months already with Android to follow in late 2019.

The move marks the eCommerce’s commitment to ramp up efforts to compete in the ad market against heavy weights Facebook and Google. In 2018, the company is estimated to having generated $10 billion in ad revenue. Its share of digital is expected to grow 8.8% in 2019, up from 6.8% in 2018.

In-app video ads account for almost two-thirds of all mobile video ad spend globally according to PubMatic and increased 200% in 2018 from the previous year.

Although rates aren’t fixed, Amazon requires a budget of $35,000 for its video ads to run for 60 days at 5 cents a view, sources close to the matter told Bloomberg.

Although a spokesperson for the company declined to comment, the company has been slow to roll out the new addition to avoid disrupting the user experience across its shopping website.