The new video ads are planned to arrive on Android "later this year". Till date, Amazon only features product photographs and brand logos in app ad space, but video ads will empower product promotion for Amazon.
Amazon expects that people exploring on its application have more chances to buy than those exploring Facebook or YouTube by watching mobile ads which will appear in response to search results on shopping app.
Bloomberg said the idea is to generate more revenue for Amazon's advertising division, which is now focused on selling ad space that features brand logos and product photos.
USC: Students possibly tied to scandal can't register
The third student was also supposedly involved in the cheating scandal but her parents weren't indicted. The Daily Trojan reported that one suit claims the students were not fairly considered for admissions.
Amazon already commands 6.8 percent share of the global digital advertising market, and that will likely grow to 8.8 percent this year, Bloomberg said.
Amazon has been beta testing the ads on Apple Inc's iOS platform for several months, according to people familiar with the plan. These changes could include breaking down companies like Facebook, Amazon and Google that have recently come under scrutiny for user data theft and consolidation of services in e-commerce and digital advertising. Advertisers are shifting their spending to follow the growing number of people watching videos on mobile devices and are making brief video snippets to appeal to people on the go. Such ads are common on YouTube and in Facebook streams. Still, this is expected to be a slow roll-out to see if it disrupts customers' shopping experience, so there's that. Earlier, only the product descriptions and consumer reviews were available for the users to make up their mind.
With shoppers seeking out other destinations like YouTube, Instagram for product demonstrations and testimonials, Amazon began adding more product-related video content two years back, to prevent shoppers from switching to these channels. Amazon is reportedly requiring a whopping $35,000 ad budget for these new ad spots at 5 cents per view for 60 days, so the ad spots won't just be for anyone to run ads on, or even attempt to abuse. Prices can vary by category and not everyone pays a fixed rate, said another person.