A few weeks ago, AdAge reported that Amazon.com was pitching the home screen on its Kindle Fire to potential advertisers. Now, AdAge is back with another report which offers more details about the Seattle online retailer’s plans in mobile advertising.
Amazon.com has reportedly been in acquisition talks with several mobile advertising companies, including mobile ad network Jumptap which has more than two dozen patents on technologies in the sector. Founded in 2005, Jumptap also is based in Cambridge, Massachusetts where Amazon is opening a new engineering office.
“Reaching 107 million mobile users in the U.S. and 156 million mobile users worldwide, Jumptap uses its extensive technology portfolio, as well as industry-first partnerships with third- party data providers, to understand mobile audiences better than any other ad network and provide intelligent targeting with scale,” according to a description on its Web site.
In addition to investigating Jumptap, AdAge reports that Amazon recently hired former Microsoftie Jamie Wells to bolster its ad sales marketing team.
The real opportunity here for Amazon — not unlike Facebook — is the company’s treasure trove of consumer data. AdAge reports:
The e-commerce giant already uses online-shopping data to power its own product recommendations and it would be hard for marketers to ignore Amazon if it incorporated some of that purchase behavior into mobile-ad targeting.
That kind of data was a draw when Apple launched iAd two years ago. Brands salivated over ad targeting based on actual purchase behavior, which was available thanks to iTunes’ 225 million accounts and $5.4 billion worth of music, video, app and book sales in 2011.
Amazon’s e-commerce business is about 10 times bigger than Apple’s so you can just imagine if it expanded deeper into mobile advertising. Furthermore, advertising could help Amazon boost its historically razor thin profit margins.