Amazon Prepping In-house Ad Platform

Amazon iPad appAmazon is developing its own online ad platform aimed at challenging Google and Microsofts dominance, according to reports.

The Amazon Sponsored Links service would initially replace ads on its own pages which are currently placed using Googles AdWords service, but in time would expand, with the aim of claiming territory from Googles advertising business.

The reports by The Wall Street Journal suggest the platform would service both desktop and mobile advertising, and claim Amazon has already informed its potential ad partners that testing of the new ad placement platform will begin later this year.

The reports also suggest that Amazon is building a tool that would enable advertising agencies to buy in bulk for thousands of advertisers.

While it will initially lack the cross-web data that Google and Microsoft can offer, Amazons insights into the shopping habits of its almost 250m active users will make it a potent tool for marketers if it does expand the platform to a wider scope. Amazon has previously been referred to as the “sleeping giant” of the advertising industry because of its rich consumer data.