Right now Amazon dominates that market and Google can’t afford a gap in its dominance
If there’s one success story on how to build your little ad empire from the last few years, it’s Amazon’s. Amazon started as an online store, grew to become the online store and a few years ago it began to position itself in the advertising market.
At the time, analysts pointed out that he could even become the player to destabilize the all-powerful duopoly, the Google-Facebook duo that dominated the global digital advertising market. Years later, in the US people were already beginning to talk about tripolio and Amazon’s position in the advertising market was already clear dominance.
Since then, Amazon’s story has inspired many competitors to follow in its footsteps. Walmart is already one more player in advertising in the US and supermarkets sharpen knives to try to capitalize on the data they have on consumers in advertisements. In a way, right now you could say that everyone wants to sell advertising and get revenue from ads, whatever the market they come from. Amazon is the powerful advance party for what could be a market-changing move.
Of course, all these movements are already having consequences. Amazon has been flooded with ads, and appearing organically on its results pages is increasingly difficult, making things difficult for brands and could weigh on the user experience. And, not least, the players that are dominating the market are no longer so sure that they will dominate it in the immediate future. The new euros from advertising could go to other hands.
That’s the reason for Google’s latest tweak. As published in The Wall Street Journal, Google is seeing how it lags behind in the fight for advertising dollars in the ecommerce market. Amazon sweeps home in this area and is where advertising investments related to products and sales are concentrated. Google can’t afford not to cut a slice of an emerging ad market like that.
You need to improve to win in advertising
Therefore, its current strategy focuses on improving positions and gaining revenue from the ecommerce advertising market. That implies changes, which are in line with what it has already been doing in recent months. Google aims to look more and more like an online store, at least on product results pages.
The search engine has updated how it will serve images of fashion, accessories and similar products. Instead of displaying them as a list of links with text, you will now present them with a photo. Your search results will look similar to what you would have when browsing an online store.
The reasons for the movement, they point out in the Journal, are clear: Google wants to protect itself against the growth of Amazon but also against the irruption in the advertising market of the retail giants. Google dominates search-related advertising and general digital advertising.
You can’t lose an emerging niche now. That Amazon is accelerating its advertising business and working on it more, has only accelerated, according to what the economic environment has been able to know, the alarms within Google. This has meant that the time has come to change things and regain positions in ecommerce.
After all, if Google wants ecommerce advertising dollars, it first needs to establish itself as a destination for viewing and searching for products (“Google is almost like the walking dead. Nobody goes there for purchases,” one analyst tells economic newspaper). They need to become an attractive space to see products, no matter how much later you take to other spaces to buy them.