Is Amazon Courting Danger by Restricting Some Product Advertising?

Amazon to Compete with Google and Facebook with its Own Mobile Ads

Indeed, eMarketer predicts that companies will spend nearly $16 billion on video ads alone this year as such content becomes increasingly popular among smartphone users.

HAS found a new way of annoying its users, with a plan to put video advertising in its smartphone apps. The online retailer has reportedly been testing ads on its iOS app for several months.

As per the speculations made by EMarketer, Amazon may raise its share of the digital advertising market from the existing 6.8 percent to 8.8 percent. Amazon is already faring better on the digital advertising space by increasing its market share by 2% in one year. 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.

Amazon has recently announced that it will be launching advertisement spots on its website and smartphone applications.

Operating an ad platform on top of a service like search or social media or retail sales opens firms like Google, Facebook and Amazon to additional anti-competitive charges.

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It's a continuation of the incremental addition of video to Amazon's site, which has included things like how-to's and product videos that shoppers might otherwise have left Amazon's site to seek them out from a destination like YouTube.

Amazon requires marketers to spend $35,000 to run the spots at 5 cents per view for 60 days, although those prices vary by ad category, per Bloomberg. From there to allowing video ads is a long way that Amazon has travelled.

With more consumers shopping on mobile, and Amazon's app a popular method for accomplishing this, video ads could turn into an important offering for Amazon.

According to a report Thursday at CNBC, Amazon has begun "aggressively blocking" advertising for products on which the company can not make a profit.

Amazon putting video ads inside search results could disrupt the shopping experience for customers, which is why this seems like a very slow rollout.

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