Amazon Plans New Online Advertising Program

Aug 25, 2014 3:53 PM  By

Amazon plans to develop its own software that will enable companies to place targeted online ads that tap the power of Amazon’s vast store of buyer data, according to the Wall Street Journal.

While the initial plan was to replace ads supplied by Google Inc. on Amazon’s own website, the new system could challenge Google and Microsoft Corp’s advertising business in the future.

According to the WSJ, Amazon plans to begin testing the new placement platform, known as Amazon Sponsored Links, later this year. The new system, which would resemble Google’s AdWords, is intended to make it easier for marketers to reach Amazon’s nearly 250 million active users.

Amazon is also building a tool that will help advertising agencies buy in bulk for thousands of advertisers, the report stated.

The company already has an advertising service it employs through its own website.