The company is set to allow developers to advertise the apps that they make for the Amazon Appstore on the company’s devices. After signing up to the new ad platform, developers will be able to have their apps featured on the Amazon Fire tablet and other mobile devices.
Drive to increase share of Amazon’s mobile advertising revenue
Although Amazon’s share of the tablet and smartphone market is small, the new initiative could end up having a wide reach because the ads will also be included on Amazon-affiliated apps on Android devices. This would include the Amazon shopping app, among others, giving developers access to the millions of users of those Android apps.
The company is making moves in order to gain a share of the mobile advertising space, which is growing exponentially. According to eMarketer, at this point Amazon has just a 0.3% share of $68.59 billion total revenue. In comparison, Google has a 35.4% share, and Facebook 16%.
In his first-quarter letter to investors of Greenlight Capital, David Einhorn lashed out at regulators. He claimed that the market is "fractured and possibly in the process of breaking completely." Q1 2021 hedge fund letters, conferences and more Einhorn claimed that many market participants and policymakers have effectively succeeded in "defunding the regulators." He pointed Read More
The major advantage for Amazon is that its app store processes a larger amount of sales than the others. Research by Newzoo shows that 64% of mobile gamers using the Amazon Appstore spend money there, compared to 37% on Google Play, which could be crucial in attracting app makers to advertise on the new platform.
Mobile strategy evolving
Amazon is also hoping to attract developers by making the advertising platform as simple as possible. The developer does not have to create the ads themselves, only set a budget and a duration of the campaign, while Amazon will create the ads. Users who click on the ad will be taken to the install page for the app.
Developers can choose to target a certain kind of user, but the interface is very simple. The advertising drive may help to attract more developers to the Amazon Appstore, enabling it to become a real rival to Apple and Google. Amazon is also offering a different paid app for free each day on its Appstore as part of a wider drive to increase its mobile appeal.