Google Ad Supremacy Threatened by Amazon’s New Mobile Ads API
Google has time and again emerged as the one of the leading players in the digital advertising industry with its hold on the mobile app market through Android and the search engine market through the Google search engine. But that position might be threatened now as Amazon has come up with a new venture. The company announced the release of its new advertising API for mobile ads.
This move from Amazon is a clear indication of how much potential the app advertising market has in terms of revenue generation. If you are learning to develop apps for Android, you might be using Amazon’s API instead of Google’s on a regular basis if Amazon’s plan clicks, a few months down the line.
Keep an eye on this one…we should start seeing more about this very soon.
API for Apps Distributed Only Through Amazon Mobile App Distribution Program
If you are planning to use the new advertising API that Amazon has released, you should know that they can be used for apps that are marketed through the Amazon Mobile App Distribution Program. This is the Google Play Store equivalent of Amazon that will allow developers to market their apps. Of course, these apps are exclusively for the Amazon Kindle devices provided by Android. But that should not deter you as there are more than a million users of these devices and you can rest assured that your apps will find takers.
Amazon Assures High Quality Ads
Typical of Amazon, the company assured its Kindle community and app developers that it would focus only on high quality ads, ensuring that the user experience of the Kindle devices is not disrupted at any cost.
Amazon also highlighted that these ads will be used by the company itself, to showcase its services and products along with the offerings of its brand partners. This is a testament to the fact that Amazon is not using this venture as a money making initiative. The focus is more on raising the awareness of the company and its brand partners among its users.
Innovative Advertising Strategy
Amazon representatives said that they have come up with a new 4 step strategy for integration of the API into the apps. This will ensure that app developers will only have minimal work for integrating this advertising API in their apps. Also, what is innovative about this new advertising strategy of Amazon’s is that the revenue tracking and API integration will be carried out through a standalone portal.
For ad tracking services, Amazon will use parameters such as longitude and latitude co-ordinates (geographical co-ordinates), floor price of the apps and products, the gender of the user, etc. The representatives from Amazon were understandably tight lipped about the innovative tracking methods.
Ad Listener
In a first-of-its-kind move, Amazon has introduced what they call AdListener interface for ad tracking facility for the developers. This interface uses a specially coined algorithm that will allow developers to track the complete life-cycle events of the advertisements being displayed on their apps. This will ensure the transparency of the advertising system on Amazon.
There is a page called the ‘restrictions page’ that is at the discretion of the developers. Using this page, the developers can actually determine which types of ads are suitable for their audience, eliminating inappropriate ads altogether.
Amazon’s Advertising Strategy Proving to Be More Effective than Google’s
A leading analytics firm, Flurry, reported that Google has not been generating the expected amount of revenue through their advertising channels. The report showed that Google managed to generate only $40 billion, much less than the expected estimates for 2012.
However, the Amazon app store has painted a different picture altogether. App developers have claimed that the Amazon app store is much more profitable in terms of monetizing their apps. Comparing the three major app stores, Apple’s, Google’s and Amazon’s, Flurry reported that for each dollar that the Apple store apps manage to generate per user, Amazon store apps generate 0.89 dollars per user while the Google Play Store apps generated a dismal 0.23 dollars per user.
Also, Amazon app store reported a staggering increase of 500% in the number of downloads from their app store in 2012 itself.
Is This the Beginning of the End of Google App Advertising Era?
Although it might be premature to eliminate Google out the race just yet, it is high time that the company made some changes to its advertising strategy. But if you are an app developer, or a budding app developer getting an Android developer certification, you can rest assured knowing that there is the Amazon app store to market your apps and even monetize them effectively.
Please Share This Knowledge With Others!
Jesse says
You have done a great job on this article, we are moving ahead in this world and the more electronic devices that come out the more amazon and others will be used. Keep up the good work I am looking forward to seeing your next post. Thank you for the work that you have done because this is going to help a lot of people.
Brandon says
I would not underestimate any push that Amazon makes. This company has proven to be very innovative and resilient. This is a very interesting development to be sure. To think that Amazon is now trying to get a market share of this industry, is kind of like what Google does with many technologies. In fact, I would say that Google seems like they are trying to dominate every major industry.
Ernest says
This is certainly a development that is worth keeping track of. After all, the Amazon publishers library has revolutionized how authors can market their books. Many writers are now making money publishing ebooks and selling them through Amazon. It seems now that Amazon is looking to break into the app field. So my assumption is that they will make it easy to publish demos of their apps and benefit from the great traffic at Amazon.
Timothy says
It was only a matter of time before a successful online marketing company such as Amazon would get into the mobile app market to claim its share. By all indications and the findings from this article, I would say that Amazon is the most capable of improving upon what already exists in the world of app sales. If they are anywhere near as successful as they have become with mail order, it should be revolutionary.
Rochelle says
Just when I was about to start writing e-book content for the purpose of selling it on Amazon, here they go breaking ground into the mobile app market. I noticed that Amazon has done a successful job of creating a good profit sharing formula that gives authors the impetus to sell their content on Amazon. If they make a similarly mutually beneficial format for app developers, this endeavor should also prove to be a boon.
Rodney says
If there is one theme that will be the topic of digital business this year, it is mobile. ComScore, which tracks Web and mobile usage, published a report about what happened in 2012, and what to expect in 2013. It shows that the effects of a movement toward mobile are everywhere, from shopping to media to search.
According to the report, “2013 could spell a very rocky economic transition, and businesses will have to scramble to stay ahead of consumers’ changing behavior. – Rodney
Kimberly says
I like the app that came installed in my new Windows 8 operating system. It resembles the The Amazon Mobile App which allows Android users to browse and “Shop by Department, quickly search, compare prices, read reviews, share products with friends, access Gold Box Deals (US only), and make purchases on Amazon.
I wonder how many more apps Amazon will continue to develop.
Kim
Christopher says
Hey Julie,
It appears that Amazon has spent the past few years assembling an advertising juggernaut in preparation for this grand roll-out this year.
The e-commerce giant seems to have taken a sizable step toward that end, by extending its mobile ad network to any Android app available through the Amazon Appstore.
I hope it turns out to be a success, since I already am a loyal customer. Chris
Harry says
It makes total sense that Amazon would break into this industry and perhaps they might even go on to capture a good percentage of the market share. This can only be good for app developers because it exposes any developer to a whole new myriad of potential buyers who have already proven to be regular spenders on Amazon. It is a boon for all sides.