Amazon is pushing further into the digital-advertising market with a new display ad tool that rivals Google and Criteo.
The tool allows merchants that sell items on its online marketplace to purchase ad spots that will follow shoppers around the web to entice them to come back to the site. According to people familiar with the company's plans, Amazon is currently inviting select merchants to test out the new ads later this month.
Sellers using the new tool will be able to bid on ads that appear on other websites besides Amazon which will help them extend their reach online. However, the merchants will only have to pay Amazon after customers click on their ads.
Amazon will be able to help merchants target shoppers that have viewed either their products or similar ones on its site. It is still unclear as to which sites or apps will carry the new ads placed by the US e-commerce giant.
Following the news, Criteo shares dropped by seven percent in New York though Alphabet shares were little changed.
Last year Amazon's ad business generated $1.7bn in revenue while its rival, Google brought in $95bn from ads. Facebook on the other hand took in $40bn from ads in 2017.
We will likely hear more from Amazon once its new ad campaign exits the invitation only stage and its new ads begin appearing online.
Image Credit: Ken Wolter / Shutterstock